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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.
8/10/2019 Island Transit Exit Conference With State Auditor's Office Agenda
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.
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|
2
8/10/2019 Island Transit Exit Conference With State Auditor's Office Agenda
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
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.
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3
8/10/2019 Island Transit Exit Conference With State Auditor's Office Agenda
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.
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4
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