ways to prepare for an audit
Post on 04-Jan-2016
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Legislative Division of Post Audit
Two parts to the SWSAo Statewide Financial Audito Statewide A-133 Federal
Compliance Audit
LPA oversees the audit, but contracts with an external CPA firm
Department of Administration Policies, Processes and Procedures
Generally accepted accounting principles
Financial accounting resourceso Codification of Governmental
Accounting and Financial Reporting Standards by GASB
o Audit and Accounting Guide: State and Local Governments by AICPA
o Governmental Accounting, Auditing, and Financial Reporting by GFOA
Grant award document Applicable CFR OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments
OMB Circular A-102 Grants and Cooperative Agreements with State and Local Governments (common rule)
OMB Circular A-133 Audits of States, Local Governments, and Not-for-Profit Organizations◦Compliance supplement
Read the instructions carefullyDon’t add or delete columns – loads up into a database
Call if you have questionsStart early
Report and correctly classify:◦Non-monetary expenditures◦Transfers to other state agencies◦Awards to subrecipients◦Clusters of programs◦CFDA numbers
Reconcile the SEFA survey to the general ledger and to the reports
Know who the key personnel in your agency are and have them available
Have documents ready Answer questions fully and timely If you don’t understand who or what the auditors want, ask
If you don’t think the auditors understand, persist in explaining to them
Err on the side of over-communicating.
Read your findings carefullyVerify the accuracy of your findingsShare the findings with key stakeholders (program personnel, agency head)
Do the above as soon as you get your findings. Don’t wait until the corrective action plan is due
If you disagree with the findings, think some of the information is inaccurate, or does not correctly characterize the situation, notify the auditors and Legislative Post Audit immediately
Thoughtfully craft your corrective action plan
The state has received a material weakness for the past two years for not being able to accurately report capital assets
The state had to re-issue the 2011 CAFR and related financial audit report because it did not include around $475 million in non-monetary revenues and expenditures
The state has received a material weakness for the past two years for not being able to compile an accurate SEFA – reissued 2011 federal audit report◦Missing non-cash items in 2011 ◦Missing and misreported information resulted in13 different versions of the 2012 SEFA
Re-works take up your timeAuditors charge for time spent re-working because of mis-reported information
Because of SEFA problems, auditors worked hundreds of extra billable hours
Agencies pay for additional charges
Martin Eckhardt (financial)martin.eckhardt@da.ks.gov 785-296-2661
Gail Barnhart (financial and SEFA)gail.barnhart@da.ks.gov 785-296-3404
Roger Basinger (SEFA)roger.basinger@da.ks.gov785-296-8083
Legislative Division of Post Audit800 SW Jackson St, Ste 1200785-296-3792
Julie Pennington, CPA, CIA, CFEFinancial-Compliance Audit Managerjulie.pennington@lpa.ks.gov785-296-5817
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