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Audit Updates

Audit Updates. Presented by Diane Moore, External Audit Manager. Overview. Initial Communication Close out – Exit Conference Audit Report Cost Transfers Reporting Clarification Final Report. Initial Communication. Phone Call Dates Email Confirmation. Documents the auditor’s use.

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Audit Updates

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  1. Audit Updates Presented by Diane Moore, External Audit Manager

  2. Overview • Initial Communication • Close out – Exit Conference • Audit Report • Cost Transfers • Reporting Clarification • Final Report

  3. Initial Communication • Phone Call • Dates • Email Confirmation

  4. Documents the auditor’s use • Grant Agreement and Amendments • Final Expenditure Report • Court Ledger (Internal Ledger) • County Auditor’s Revenue/Expenditure Ledgers • Receipts • Invoices • Contracts • Timesheets, Request forms and Accrual balance reports

  5. Documents Paper or Electronic Is the document in paper or electronic form? Is it in excel or pdf? Originals or Copies Originals are always best! Auditors have scanners and/or can copy if need be. EXCEPTION: Timesheets and request forms.

  6. Close-Out / Exit Conference • Auditors should be communicating internal control weaknesses, non-compliance items, and errors/findings. • Auditors should send or give you a summary of potential items and/or pending items of areas reviewed. Note: Payroll is sometimes done after the initial visit. • Until Audit Report is provided, the auditor may still request further documentation or explanation of items.

  7. Audit Report and beyond • Phone Call • Email with Audit Report (no longer need to access on the web) • Response Needed • 45 Days form the Date of the Audit Report • Appeal • Corrective Action Plan

  8. Corrective Action Plan • Brief Description of Audit Finding 2. Brief Description of Corrective Action This section should include in complete paragraph form, your plan of action to correct the finding, and a clear explanation of the changes that will be made to ensure that the noncompliance citations will not recur. 3. Anticipated Completion Date for Corrective Action

  9. Cost Transfer Transfer of an expenditure initially posted to one project or fund and then transferred to another project or fund. Other terms: • Transfer of Expenses/Expenditures • After period Adjustments • Reallocation of Expenditures • Cost Transfer • Reclassification of Expenditure

  10. Cost Transfers: Basic Guidelines • DYS (grantor) expects that costs are charged appropriately at the time incurred and that significant adjustments should not be required if adequate financial management practices and policies exist. • Frequent cost transfers and cost transfers made long after the original cost is incurred (even if valid) raises questions about the reliability of accounting systems, internal controls and policy. • DYS scrutinizes cost transfers closely for indications of cost misallocation, and often disallows costs transferred into other accounts generally because of non-compliance with timing, documentation, and procedural requirements.

  11. What can you do if you need to complete a Cost Transfer ? • Timeliness is key Recommendation is the month following the original expenditure, no more than 90 days after. Cost transfers after grant closes are unallowable. • Documentation • Extenuating circumstances (late issuance or failure of another to take action) • Not extenuating circumstances (lack of staff or inexperienced staff or lateness of reconciliations)

  12. Reporting Revenue • Revenue Youth Service Grant allocations / appropriations RECLAIM JDAI TARGETED COMPETITIVE • Receipts refunds (workers compensation) rebates (from a vendor for goods or services purchased from the vendor) reimbursements (jury duty, personal usage of resources, such as a photocopier – if policy allows, etc.)

  13. Overall Tips • Timely Reconciliations (Monthly, at minimum quarterly) • Contract Rates/Terms/Amounts – Signed contracts • Support all expenditures with adequate documentation

  14. FY 2018 Final Expenditure Report • Question: How has tracking expenditures been this year with the need to track by Funding Source, Activity and local program names? • Have your county auditor’s office worked with you to change coding, accounts or names? • Anybody have audit concerns… Recommendation - Keep records to easily identify how you determined your final expenditure amounts. Example if you use one contractor for multiple activity and programs, keep notes on how you determined which activity it relates to.

  15. QUESTIONS?Thank you!

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