typical audit findings at puis: a proactive approach to avoiding negative findings
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Typical Audit Findings at PUIs: A Proactive Approach to Avoiding Negative Findings. Dr. Carrie H. Brown a nd Jennifer Hanlon Stephen F. Austin State University. What does “AUDIT” mean ?. A = Analytical U = Unbiased D = Dings I = Internal accountability T = Typical. - PowerPoint PPT PresentationTRANSCRIPT
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Typical Audit Findings at PUIs:A Proactive Approach to Avoiding
Negative FindingsDr. Carrie H. Brown
andJennifer Hanlon
Stephen F. Austin State University
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• A = Awfully unnecessary• U = Useless paperwork• D = Damning evidence• I = I know nothing• T = Tyrants in charge
• A = Analytical• U = Unbiased• D = Dings• I = Internal accountability• T = Typical
What does “AUDIT” mean ?
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Why should we care?• Transparency is the “new black”
- Taxpayers expect accountability for their money- Sponsors expect accountability for their money
• Complex regulations require monitoring• Protect Institution (bad press is bad press)• Paying back a sponsor hurts (fiscally and otherwise)
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SettlementsUniversity Amount IssueUniversity of Minnesota $32 million misuse of federal fundsEast Carolina University $1.7 million effort certificationNorthwestern University $5.5 million effort certificationJohns Hopkins University $2.7 million effort certificationUniversity of the District $530,000 false payment claimsof Columbia
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Unique Challenges for PUIs• Minimally staffed central office • Handle everything grant related
(emphasis on preaward)• Central offices work directly
with other offices (human resources, accounts payable, etc.)
• More mandates don’t come with more money or people
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Use Audits to Help You• Discover weaknesses • Emphasize areas of strength• Test strength of policies and procedures• Test need for new/updated policies and procedures• Strengthen your case to implement policies and
procedures from other institutions’ audits• Train PIs, staff and other institution employees
using lessons from other institutions’ audits
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• Internal • Programmatic • Financial• A-133• Pre-award• Desk review
• F & A cost proposal• Compliance (IRB, IACUC)• Whistle blower • Issue specific– Time and effort
certification– Cost transfers
Typical Audit Types
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Lifespan of an Audit • Agency contacts institution• Agency holds entrance conference • Institution collects and presents information requested• Agency drafts audit report• Institution responds to draft audit report• Closing meeting to review audit report and responses• Agency issues final audit report • Institution responds to audit • Agency follows-up on institution response
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Prepare• Review audits from other institutions• Keep informed of current audit targets• Develop and follow sound policies and
procedures• Regularly review and test your policies
and procedures• Develop an audit response plan• Keep accurate, current and complete
documentation• Create and follow a records retention
policy/procedure
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• National Conference on College Cost Accountinghttp://www.costaccounting.org/audits.html
• National Science Foundation http://www.nsf.gov/oig/auditpubs.jsp
• US Department of Education http://www2.ed.gov/about/offices/list/oig/areports.html
Review other Audits
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• U.S. Government Accountability Office• Federal Inspector General Sites
http://www.ignet.gov/igs/homepage1.html• Follow each federal agency’s Office of Inspector General
annual work plans– 2012 DHHS work plan included these review areas:
• Cost sharing• Extra service compensation• ARRA awards• Direct charging of administrative and clerical salaries
Keep Informed of Audit Targets
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Develop Sound Policies & Procedures• Keep policies general
- What is the rule- Change infrequently
• Clearly designate who monitors• Develop specific procedures
- How to implement the policy- Can change as needed
• Be consistent in policies, procedures and practice• Include other offices in policy/procedure development • Educate staff and faculty on all policies and procedures
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Review Policies and Procedures• Pilot new procedures
- Obtain input at all stages - Preview with staff, faculty and other offices
• Review implementation of policy/procedure- Does it work how you expected?
- Does it impact the right audience?• Internal review
- Auditor - General counsel- Human resources
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Designate audit liaisonOrganize audit response
teamUnderstand audit
schedule, roles of audit personnel
Identify and assign staff most knowledgeable to data needs
Document data location and availability
Clarify all requestsRespond timely to requestsEnsure that data provided
is accurate, complete, and addresses request
Develop audit response
Have an Audit Response Plan
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Documentation: Accurate, Complete, Current• The “paperless office” myth• Show what you did and why• Train everyone - PIs, grant staff,
department staff, pre/post award• Keep hard copy back-up of electronic
documents• Keep phone logs• Follow-up phone calls with written
correspondence• Obtain written sponsor approvals • Electronic documents never die (email
is eternal)
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Records Retention / Retirement“The rights of access . . . are not limited to the required retention period but shall last as long as the records are retained.”
• OMB A-110, 215.53(e) Retention and access requirements for records
Thus, if you have a record, it’s Findable. . . Tangible. . . Noticeable. . . Observable. . . Auditable. . .
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Records Retention Process• Institution should have system-
wide policy• Grant retention schedules may
extend past institution policy• Clearly identify who keeps what• Define how you determine
retention length• Determine medium to maintain• Maintain records disposition log
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What do Auditors do ?
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• Truthfully answer all questions asked.• Respond only to questions asked.• Listen carefully to questions before responding.• Ask clarifying questions as needed.• Provide answers IF you have first-hand knowledge
and facts to support your answers.
Interacting with Auditors:The Good
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• Never argue. (Auditors are merely number crunchers and don’t know what they are doing, right?)
• Don’t ramble on and on and on. (The more you talk, the less the auditor listens.)
• Don’t get emotionally involved. (Of course the auditor is picking on YOU.)
• Never ever speculate - even if asked. (Nothing is better than making stuff up during an audit!)
Interacting with Auditors:The Bad
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Overall Lessons Regularly educate faculty and staff. Develop a positive relationship with your general
counsel and internal auditor. For mental well being, develop your audit response
plan yesterday. Follow policies and procedures. Document when exceptions are made and explain. Don’t put it in writing if you aren’t going to follow. Less is more.
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Discussions and Questions
Contact Information:
Dr. Carrie H. [email protected]
Jennifer [email protected]
ORSP - http://www2.sfasu.edu/orsp/