island transit exit conference with state auditor's office agenda

8/10/2019 Island Transit Exit Conference With State Auditor's Office Agenda

1/4

Island Transit

Exit

Conference

October 24,2OL4

Washington

State

Auditor

Troy Kelley

Director of

Local

Audit

Kelly

Gollins

(360)

902-ooe1

Kellv.Collins

@sao.wa.qov

Deputy Director

Sadie

Armijo

(360)

eo2-0362

Sadie.Armiio

@sao.wa.gov

Audit

Manager

Andy Asbjornsen

(360)

676-216s

Andrew.Asbiornsen

@sao.wa.qov

Audit Supervisor

Jenny

Lofton

(360)

676-2165

Jennifer.

Lofton

@sao.wa.gov

Audit

Lead

Michelle

Palmer

(360)

676-2165

Michelle.Palmer

@sao.wa.qov

www.sao.wa.qov

Twitter:

@WAStateAuditor

Meeting

Agenda

The

purpose

of

our exit

conference

is to

share

the

results

of our

independent audit

and

to

provide

a

forum for

open

discussion. We

are

pleased

to

review

our

reports and discuss other topics

as

listed below

with

you.

.

Federal

grant

compliance audit report

o

Financial statement

audit report

and other required

communications

.

Accountability audit

report

.

Status

of

prior

audit recommendations

.

Report

publication

.

Your next scheduled

audit

o

Qustomer

service survey

Preliminary

audit

results

and

recommendations

were shared

in detail

with Transit management and

personnel

as

they were

developed

during

the

audit.

We would

like

to thank staff for their cooperation

and

timely

response to our requests

during

the

audit.

We take seriously our

responsibility

to

hold

state and local

governments

accountable for

the

use of

public

resources.

We believe it

is critical to citizens

and

the mission

of the Transit

that

we work

together as

partners

in

accountability

to

prevent

problems

and

constructively resolve issues. As

such,

we

encourage

your

comments

and

questions.


2/4

Federal Grant

Compliance

Audit

Report

Our

report

discloses

the

results

of our

audit of compliance

and

internal controls

over federal

grant

programs.

It

includes the following finding.

o

The

Transit's internal controls

are

inadequate

to

ensure

compliance

with

the

requirements

of

the State

of Good Repair

Grants Program.

Financial

Statement

Audit

Report

Our

draft financial

statement

report

includes

our opinion

on

the

financial

statements. It also

includes our report

on

internal

control over financial reporting

and

on noncompliance

and

other

matters

as

required

by Government Auditing

Standards. lt

includes

the following finding.

r

The

Transit's financial condition

has

impacted current service levels

and puts

it

at

risk

of not being

able to meet financial obligations.

An

unmodified

opinion

will

be issued on

the financial

statements, which

means

that

we

believe

they are

presented

fairly, in

all

material respects.

ln relation

to

our

report,

we would like

to bring to

your

attention:

.

There were

no uncorrected

misstatements in

the

audited

financial

statements.

o

There

were

no

material misstatements

in

the

financial statements corrected

by management

during

the audit.

r

No

significant

deficiencies

in internal

control over

financial

reporting

were identified.

.

No

instances

of

noncompliance

were

identified that

could have

a

direct

and

material

effect

on

the determination

of

financial

statement amounts.

Accountability

Audit

Report

Our

draft

accountability

report

summarizes

the

results

of

our risk-based

audit

work

related

to

safeguarding

of

public

resources

and

legal

compliance.

The

report

includes

the

following

finding:

o

The

Transit

does not

have adequate oversight

of

payroll

to safeguard

public

resources.

Page

|

2


3/4

Recommendations not included in

the

Audit

Reports

Exit Items

We

have

provided

exit recommendations for

management's

consideration. They

are

not

referenced in

the audit report.

Status of

Prior Audit

Recommendations

Concluding

Comments

Report Publication

Audit

reports

are

published

on

our website and distributed

via

e-mail

in an

electronic .pdf

file.

We

also

offer

a

subscription

service

that

allows

you

to be

notified

by email when

audit reports

are

released

or

posted

to our

website.

You

can

sign up

for

this

convenient

service

at:

https : //po rta l.

sa

o.

wa.

q

ov/s ao

po

rta I/Loq i

n.

as

px

Your

Next Scheduled

Audit

Your

next audit is scheduled

to be conducted in 2015

and will

cover the following

general

areas:

Accountability

for Public Resources

Financial

Statement

The

estimated cost for

the

next audit

based

on the

current

billing rate is

24,000

plus

travel

expenses.

This

preliminary

estimate is

provided

as a

budgeting

tool and not

a

guarantee

of

final

cost.

lf

expenditures

of federal awards

are

500,000

or

more

in

any fiscal

year,

notify

our

Office so

we

can schedule

your

audit

to

meet federal

single

audit

requirements.

Federal

awards

can

include

grants,

loans,

and non-cash assistance

such

as equipment

and

supplies.

a

a

Customer

Service

Survey

An

invitation

to

complete

a

customer

service

Executive

Director.

Your feedback

is

important

improve

our audit

process.

survey

will

be

emailed

to

Bob

Clay,

Acting

to our

commitment

to

continually

develop

and

Please

don't

hesitate

to

contact

our Office throughout

the

year

when

you

have

questions..,'Our

website

also

offers

many

resources, including

a

client HelpDesk

for

your

auditing and

accounting

questions.

This

document

and any attachments

are intended for the information

and use

of management

and the

governing

body. However,

this document is a matter of

public

record

and its

distribution is

not limited.

The

Transit

did not adequately monitor

take

home vehicles

and fuel

card use to ensure they are only used for

official

purposes.

Page

|

3


4/4

Island Transit

Exit

Conference

October

24,2014

Exit

Recommendations

Vehicle use monitoring

Our

prior

audit finding identified

the Transit did not adequately

monitor take

home vehicles

and

fuel

use. The Transit

took

steps

to improve tracking

and reporting

over

vehicle use; however,

is

still working

on

increasing controls

to

ensure

actual

mileage

is compared

to vehicle

and

fuel

use.

We recommend

the Transit strengthen controls to

ensure actual

mileage is

compared

with

vehicle

and fuel

use.

Travel

and meal

policies

The

Transit's

travel

policy

does not define when an employee

is in

travel

status or type

of

eligible

costs

while

in

travel status. Without

a

defined

travel policy,

the Transit

does

not have

a

consistent method

to identif,z when an employee is

in travel

status and

what expenses

will

be

paid

or reimbursed.

Also, the Transit

does not have a

policy

identifzing

when

meals

are

allowable

for

a

public

purpose.

We

recommend

the Transit

establish a travel

policy

that

defines

when an employee

is in

travel

status and eligible

costs while in

travel.

We also recommend

the Transit

establish

a meals with

meetings policy

that identifies

when meals are

for

an

appropriate public

purpose.

Financial statement

errors

Our

audit identified immaterial

errors

in

the

financial

statements,

which

the Transit corrected,

including:

o

Schedule

of Expenditures

of Federal Awards

underreported

by

59,764

o

Missing

long term

debt note disclosure

o

Inaccurate

implementation

of

GASB

63

and

65

We recommend

the

Transit establish

and follow

procedures

to

ensure

an

appropriate

review

of

the

financial

statements

and

notes to the financial

statements

is

performed

by a

person

knowledgeable

of reporting requirements.

Page

|

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island transit exit conference with state auditor's office agenda

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