Audited Agencies 2013 Closing Process Training

1. Audited Agencies 2013Closing Process Training

2. Agenda • Introductions • Surplus Property • Treasurer’s Office • Ernst & Young • Single Audit/CAFR Update • Single Audit • Closing Process • New GASB’s • Issues & Concerns • Adjourn

3. Financial Accounting & Reporting Section Staff Connie Byrne, CPA Susannah Carpenter, CPA Jordan Clay Becky Hayes, CPA Dan Nary Jeff Perkins Jane Shinn Kay Walden Betsy Wheeler

4. Treasurer’s Office Ernst & Young • Carolyn Atkinson • Julie Hefner-Ferrell • Drew Hendricks • Joann Tinsley • Susan Wheeler Surplus Property • Elizabeth Perdue

5. WV Surplus Property Cleanup of WVFIMS Fixed Assets

8. State of West Virginia Single AuditAudit Team Contact Information Financial Reporting Susan Wheeler, Partner—Ernst & Young Phone: 357-5974 Email: susan.wheeler@ey.com Jiajia Wu, Manager —Ernst & Young Phone: 357-5839 Email: jiajia.wu@ey.com Adam Fisher, Manager—Ernst & Young Phone: 357-5960 Email: adam.fisher1@ey.com OMB A-133 Shelley Norton, Senior Manager—Ernst & Young Phone: 357-5973 Email: shelley.norton@ey.com Betty Rowe, Manager—Ernst & Young Phone: 357-5985 Email: betty.rowe@ey.com Chris Deweese, Member—Suttle & Stalnaker Phone: 720-3107 Email: cdeweese@suttlecpas.com

9. FY 2012 Update • Issued CAFR on 1/31/13 • Still expect to receive Certificate of • Achievement in Financial Reporting • Issued Single Audit on 3/30/13 at • 10:40 p.m. on Saturday

10. FY 2012 Update • The CAFR combines 67 unaudited and 29 audited agencies. • Agencies struggle to submit financial information • 71 of 96 agencies submitted timely (73%)

11. CAFR for Fiscal Year 2012 • Almost 500 journal entries • 100+ Work papers • 8 Full-time employees • 2 Part-time employees

12. 2012 Single Audit • 63 Findings – up 4 from 2011 • Up 8 from 2010 • 22 repeat findings • 58 are program audit findings • Increase of 3 from 2011

13. Single Audit

14. 2012 Statewide Findings • 2012- 5 – SEFA • 2012- 6 – Subrecipient Risk Assessment • 2012- 7 – Subrecipient Monitoring – ARRA • 2012- 8 – Transparency Act Reporting • 2012- 9 – Subrecipient Identification

15. Form 17 - SEFA Checklist • Required with SEFA submission • Signatures required: preparer and supervisor • Issues will be communicated with preparer and supervisor listed on this form. • New items: DUNS and FEIN SEFA Check List Revised

16. Form 17 - SEFA Checklist • CFDA / Program beginning balances documented • Are the negative receipts or disbursements documented? • Is the ending cash account balance for WVFIMS account type equal to the 6/30/13 cash balance? • Reconciliation items $25K or greater documented • Forms 17B and Form 17C – Transfers confirmed and beginning balance = PY ending SEFA Check List Revised

17. Form 17 Revised

18. Form 17b Revised

19. Form 17c Revised

20. Reconciliation Total from SEFA (matches 6/30 FIMS) +/- Transfers from forms Actual Disbursements

21. Form 16 – Prior Year Findings Update monthly Send to Connie.S.Byrne@wv.gov Form 16

22. eZ-Audit Form 16

23. Prior YearFindings GOODResponse: “The Fund continues to monitor the status of subrecipient audit reports and provide technical assistance to ensure that management and the governing body of the subrecipients understand the importance of filing timely audit reports. This issue will be resolved by October 31, 2014”. Form 16

24. 2013 Single Audit Improvements • FARS will be involved in the entrance conferences. • FARS will provide final SEFA to agencies • Agencies will have 2 weeks to obtain requested documentation for the audit firm. If after 2 weeks and documentation is not provided will/may receive a finding. • FARS will be involved in the closing meetings. • Preliminary findings document will be issued in December. • Red/Yellow/Green Letter

25. Federal Award Demonstration

26. CFDA Number • Award Amount / Spending Conditions • Compliance Requirements • Reporting Requirements • Allowable Costs / Davis Bacon • Research and Development Grant Award Package

27. Cash Advancement Grant Advance payment - means a payment made by Treasury check or other appropriate payment mechanism to a recipient upon its request either before outlays are made by the recipient or through the use of predetermined payment schedules.

28. Revenue Source Code 861 is to be used to record federal revenue received by a state agency. • Object code 168 is used to record the federal funds disbursed to a state agency. • At year end the total of the transfers will be reported on closing book forms 17B and 17C. Object Codes (WVFIMS)

29. Vendor - means a dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a Federal program. These goods or services may be for an organization's own use or for the use of beneficiaries of the Federal program. Vendor Relationship

30. Reimbursable Funding- Occurs when entities are funded on a reimbursement basis, program costs must be paid for by entity funds before reimbursement is requested from the Federal Government. Reimbursable Funding

31. New subrecipient • Existing subrecipient • History of noncompliance • New personnel • New or substantially changed systems High Risk Subrecipient

32. Reporting Requirements

33. SEFA Software

34. Web link to Federal Grant Access Database Program at - http://www.wvfinance.state.wv.us/grants.htm • Download the Federal Grant Information which consist of: • Installation Instructions • Grant Reporting Installation Program • FARS and Grantor Data Tables SEFA Software

35. New Computer • Have a new computer? • Print the Program Installation Instructions • SEFA software must be downloaded to • C:\Program Files\SEFA • Need administrative rights to this folder • FARS and Grantor Data Tables must be downloaded to • C:\Program Files\SEFA\Import: • FARS Data Table • Grantor Data Table SEFA Software

36. Are you using the same computer from last year? • Warning! Import will overwrite prior year data files • Maintain a copy of last year’s information by: • Copying existing SEFA folder to new path: • From C:\Program Files\SEFA • To C:\Program Files\FY 2012 SEFA SEFA Software

37. Federal Reporting • Software Issues • When adding a New “Program” or “CFDA” • First thing you should do in the “Add CFDA” window is select correct icon. SEFA Software

38. Federal Reporting • Software Issues (cont.) • Always select an Account Number • Always select a Federal Grantor SEFA Software

39. Federal Reporting • Software Issues (cont.) • Don’t enter information into Account • TRANSFERS XX (FARS use only) • Windows 7 users should be able to download • Contact us early for assistance SEFA Software

40. Federal Reporting • Documentation needed for: • Beginning balance changes • Reconciling items over $25K • Negative disbursements and receipts SEFA Software

41. Federal Reporting • Information Issues (cont.) • Balance to WVFIMS as of 6/30 • Do not include 13th month • Do not duplicate CFDA #’s in the same account SEFA Software

42. Clean Up Items • Review the federal grant report for completeness: • CFDA numbers should be in proper fields. • Each program should have a federal grantor. • Programs with no activity, with all zeros, can be removed. Include if there is a beg. balance adj. • Report should foot, round to nearest dollar, do not include cents. SEFA Software

43. Due Date July 31, 2013 SEFA Software

44. Submit supporting documentation and export data via Email to: Connie.S.Byrne@wv.gov or Mail with supporting documentation to: FARS Building 17, 3rd Floor 2101 Washington Street, East Charleston, WV 25305 SEFA Software

45. “Federal Award Demonstration” Continues

47. Form 17C Revised

48. Form 17B Revised