Top Five Issues Discovered In Government Audits Presented by: Adam McCane

Top Five Issues Discovered In Government Audits

Presented by: Adam McCane

2

• Internal controls

• Capital assets/expenditures

• Net position/fund balance

• Balance sheet “stuff”

• Address prior year issues

• Questions

Outline

3

• Failure to adequately document significant processes and policies

• Too many “exceptions” to the policies, that aren’t documented

• Failure to re-evaluate documented policies and processes after system changes

Internal controls

4

• Fixed asset details/sub-ledgers that don’t reconcile to the general ledger

• Failure to reconcile capital expenditure accounts to fixed asset ledger

Capital assets/expenditures

5

• No adopted fund balance policy consistent w/ GASB 54

• Not adequately identifying committed and assigned funds/sources

• Not properly calculating net investment in capital assets

Net position/fund balance

6

• Unreconciled miscellaneous balance sheet accounts

• Failure to adequately accrue receivables/payables into the proper reporting period

• Accounting staff not communicating w/ other departments for non-cash transactions

Balance sheet “stuff”

7

• Improper entry of PY audit adjustments, or reversals

• Same issues recurring multiple years in a row

Address prior year issues

Questions?

Adam McCane, CPAPartner, Assurance ServicesDirect: 512-609-1968Adam.McCane@Weaver.com