National Governmental Accounting and Auditing Update · PDF fileNational Governmental Accounting and Auditing Update august 22-23, 2011 JW Marriott Hotel Pennsylvania Avenue Washington,

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hotel cutoff date: 7/21(DC) 8/26(nV)

National Governmental Accounting and Auditing Update august 22-23, 2011 JW Marriott Hotel Pennsylvania Avenue Washington, DC

septeMber 19-20, 2011The Venetian/Palazzo Hotel Las Vegas, NV

Value-Added WorkshopsWednesday, August 24th (DC)Sunday, September 18th (NV)

Save

75 by 7/8/11 (DC)

8/5/11 (NV)

Early Bird Registration

$

Don’t Miss:• The Effects of Fiscal Pressure on Governments and Their Auditors• New 2011 Yellow Book• Latest on Single Audit and Recovery Act

Federal Track in DC Only!

governmental Audit Quality Center (gAQC) Members Save an addiTional $50

in DC – gene Dodaro, Comptroller General, U.S. Government Accountability Office

in Las Vegas – David M. Walker, Founder & CEO, Come Back America Initiative

Keynote speakers include:

Register by 7/8/11 (DC) and 8/5/11 (NV) SAVE $75!2

Benefit from in-depth workshops on these valuable topics:• The Basics of Using the OMB

Compliance Supplement

• Performance Audits: A Growing Trend

• The Real Adventures of Sampling in a Single Audit: Concepts, Strategies, and Techniques You Can Use

• Forensic Tools and Data Mining: How Data Mining Can Be Used in Risk Assessments

Noted Speakers

With today’s policies, laws, standards and regulations in a constant flux, it seems federal, state, and local governments are faced with one fiscal challenge after another. That’s why it’s essential to fully understand the key issues that affect current policy, and where we go from here. This conference will help you do that.

In a comprehensive two-day program, leading experts at the 2011 aiCpa national governmental accounting and auditing update Conference will provide you with the in-depth training, insight, strategies and solutions that will help you successfully address these critical issues head-on.

in Washington, DC – gene Dodaro, Comptroller general, u.s. government accountability office, became the eighth Comptroller General of the United States and head of the U.S. Government Accountability Office (GAO) on December 22, 2010. As Comptroller General, Mr. Dodaro helps oversee the development and issuance of hundreds of reports and testimonies

each year to various committees and individual members of Congress. These and other GAO products have led to hearings and legislation, billions of dollars in taxpayer savings, and improvements to a wide range of government programs and services. Mr. Dodaro, who holds a bachelor’s degree in accounting from Lycoming College in Williamsport, Pennsylvania, is a Fellow of the National Academy of Public Administration and a member of the Association of Government Accountants.

in Las Vegas – the honorable David M. Walker, Cpa, founder and Ceo, Comeback america initiative, leads the CAI’s efforts to promote fiscal responsibility by engaging the public and key policymakers on a non-partisan basis to help achieve solutions to federal, state and local fiscal imbalances. Previously, he served as the first President & CEO of the Peter G. Peterson

Foundation, and was the seventh Comptroller General and head of the GAO from 1998-2008. Dave also has 20 years of private sector experience, serves on various boards and advisory groups, has authored three books, is a commentator, and a subject of the critically acclaimed documentary I.O.U.S.A.

Who Should AttendCPAs working in federal, state and local government; public practitioners with government clients, and regulators.

GASB Statement 54: Fund Balance & Government Fund Definitions

Update from GASB & FASAB The Latest on Public Sector Pensions New Clarity Audit Standards Impact of the Current Economic Environment on State & Local Governments

Hot Topics

Stay current on the key issues impacting today’s governmental accounting and

auditing standards as leading policymakers provide their insight and expertise. session

foCus


fieLDs of stuDy

traCKs

session foCus

*Auditors must use professional judgment when determining and documenting if these sessions qualify for Yellow Book CPE in accordance with the Government Accountability Office, Government Auditing Standards, July 2007 Revision and Guidance on GAGAS Requirements for Continuing Professional Education, GAO-05-568.

The following icons designate sessions that focus on the timely topics of: Single Audit and Yellow Book qualified sessions.

Federal (dC only) State/local Bonus

a-aCCounting a(g)-aCCounting (goVernMentaL)* au-auDitingau(g)-auDiting (goVernMentaL)* re-reguLatory ethiCssKa-speCiaLiZeD KnoWLeDge & appLiCation

A-133 Single Audit Session Yellow Book Session

WoRkShoPS WEDNESDAY, AuguST 24 (DC) / SuNDAY, SEPTEMbER 18 (NV)

7:30 am - 5:00 pm registration and Message Center open7:30 am - 8:30 am Continental breakfast8:30 am - 12:15 pm Value-added Workshops (additional fee) (includes 15 minute refreshment break) (Lunch will only be provided for individuals attending a full day of optional workshops) 101 The Basics of Using the oMB Compliance Supplement aU(G)

Barbara Cevallos, Harvard Medical School, Boston, MA (DC Only)Sean Walker, Clifton Gunderson LLP, Milwaukee, WI (NV Only)Kim McCormick, Grant Thornton LLP, San Francisco, CAThis session will explore the Circular A-133 Compliance Supplement. Through case studies and hands-on experience, participants will gain an understanding of its content, common errors made by auditors, as well as best practices for using this document to develop A-133 audit strategy.

102 Performance audits: a Growing audit Trend aU(G)J. Sean Hoffman, KPMG LLP, McLean, VAHeather Keister, U.S. Government Accountability Office, Washington, DCPerformance audits conducted under Government Auditing Standards provide objective analysis facilitating the identification of opportunities to improve program performance and operations, reduce costs, and facilitate decision making. Performance audits provide assurance or conclusions based on an evaluation of sufficient, appropriate evidence against stated criteria.This session will answer the questions: • What is a performance audit?• What does a performance audit provide and when is one useful?• Who conducts a performance audit and how?The session is appropriate for those charged with program oversight and those delivering performance audits. Performance audits focus on a variety of topics, including: IT security and “cloud” risks; an organization’s audit readiness; a program’s achievement of goals, ability to cover costs, efficiency and redundancy with other programs; and compliance with regulations, among others.The session will serve as a good forum for users and providers to reconcile expectations for performance audits.

Topics and speakers are subject to change

Select One Concurrent Workshop

A-133

*be sure to supply a valid email address when registering. Instructions to access the speaker materials and conference recording website [AICPAConferenceMaterials.com] are distributed via email approximately two weeks prior to the start of the conference. Also, add [email protected] to your safe sender list.

an eco-friendly and paperless initiativeIn an effort to be more environmentally friendly, cost conscious and

forward-thinking, AICPA Meetings & Conferences is offering participants access to conference materials via a speaker

materials website in advance of the conference. *Conference manuals with session outlines

will not be provided onsite

free access to Conference session recordings


Conference Agenda1:15 pm - 5:00 pm Value-added Workshops (additional fee) (includes 15 minute refreshment break) 103 The Real adventures of Sampling in a Single audit: Concepts, Strategies, and Techniques You Can Use aU(G)

Erica Forhan, Moss Adams LLP, Seattle, WAFlo Ostrum, Grant Thornton LLP, Fort Lauderdale, FLIt’s been over a year since the AICPA published sampling guidance specific to A-133 audits in its Audit Guide, Government Auditing Standards and Circular A-133 Audits. How have auditors adapted? What effect has this had on how single audits are performed? This workshop session will explore how this guidance and the expectations of federal regulators have changed sampling methods and techniques, and how it has impacted auditors’ practices. We will study the practical application of this guidance, using real-life scenarios and challenges. Attendees will walk away with a better understanding of the concepts underlying audit sampling, new strategies for applying sampling guidance, and techniques for planning and performing audit procedures involving sampling.

104 Forensic Tools and data Mining: How data Mining Can Be Used in Risk assessments aU(G)

Speaker to be announced. Please check website for update. Data analysis software can help management, auditors, analysts and investigators identify targets for further investigation. The Recovery Accountability and Transparency Board has established a state-of-the-art Recovery Operations Center which uses analytical tools to sort through massive amounts of data and pinpoint irregularities, questionable connections, and indicators of fraud. This presentation will demonstrate tools designed to intercept fraud closer to the front end of the fraud continuum, using software to search massive amounts of data to look for criminal convictions, lawsuits, tax liens, bankruptcies, risky financial deals, suspension and debarment proceedings, and other problems.Additionally, this session will provide information on how data mining can be utilized in the risk assessment process. Risk assessments are a critical aspect of the improper payments mitigation strategy. It will also discuss the differences between enterprise-wide risk assessments and program-focused risk assessments, and information on conducting risk assessments, including the beneficial use of forensic data analytics as part of the risk assessment process.

MAIN CoNfERENCE MoNDAY, AuguST 22 (DC) & SEPTEMbER 19 (NV) / DAY oNE

7:00 am - 5:20 pm registration & Message Center open7:30 am - 8:30 am Continental breakfast 8:30 am - 8:40 am Welcome & introduction8:40 am - 9:30 am general session 1 The dodd-Frank act: What every CPa Should Know a, aU

Mark Peterson, Vice President of Congressional and Political Affairs, AICPA, Washington, DCThe Dodd-Frank Act marks a historic shift in U.S. financial supervision. It was established to ensure that consumers are protected in their financial dealings, and that Wall Street and other financial institution activities become more transparent and appropriately regulated. Even though there aren’t many provisions that directly affect state and local governments and their auditors, all CPAs should be informed about this important legislation. This session is presented by AICPA Congressional and Political Affairs staff, who have been closely monitoring activities relating to the law and will provide participants with:• An overview of the legislation• How it affects the accounting industry • The status of implementation initiatives

Select One Concurrent Workshop A-133


9:30 am - 10:20 am general session 2 GaSB and FaSaB Update a(G)

Tom Allen, Federal Accounting Standards Advisory Board, Washington, DCRobert Attmore, Governmental Accounting Standards Board, Norwalk, CTIncreased financial stress at all levels of government has resulted in heightened focus on the adequacy of reported government financial information by policymakers, regulators, investors/creditors, financial analysts, and citizen/taxpayer groups. In this session, the GASB and FASAB chairmen will provide an overview of their respective Board’s efforts to improve the decision-usefulness of information in financial statements and to enhance public accountability. Issues to be discussed include: • Recently issued, or newly effective, standards • Current Board projects • How to more effectively communicate financial position and results of operations

10:20 am - 10:40 am networking refreshment break10:40 am - 11:55 am Concurrent sessionsFederal (dC only) 3 How is the Federal Government dealing with the Financial Crisis? a(G)

Thomas McCool, U.S. Government Accountability Office, Washington, DCWhat did the federal government do to respond to the crisis? How well has it worked out? Is the crisis over?

State & local 4 internal Controls: My Clients do not Have any (repeated in #28) a

Sean Walker, Clifton Gunderson LLP, Milwaukee, WIThe updated auditing standards focus on obtaining an understanding of a client’s internal controls, including situations when a client’s controls are not strong enough to use as audit evidence. This session will discuss this dilemma, and consider strategies to improve the value of a financial audit.

State & local 5 avoiding Pitfalls When Using the Work of a Specialist (repeated in #10) a James Lanzarotta, Moss Adams LLP, Eugene, OR Flo Ostrum, Grant Thornton LLP, Fort Lauderdale, FL With the application of many accounting standards that rely on estimates, and the increased scrutiny of employee benefit plan accruals, the use of a specialist has become a more sensitive issue for preparers and auditors. Use of, and reliance on, specialists is common for employee benefit plans, self-insurance reserves, environmental liabilities and landfill reserves, among others. This session will use case studies to explore suggested management internal controls, audit procedures that can be applied, and auditor documentation when relying on the use of a specialist.

Bonus 6 Top 10 deficiencies in Financial Reporting a(G)Frank Crawford, Crawford & Associates, PC, Oklahoma City, OKEric Formberg, Plante Moran PLLC, Auburn Hills, MI (NV Only)As financial reporting continues to increase in complexity and with many governments facing staff reductions, the challenges for governments to stay current and implement needed changes are greater than ever. This session will provide areas of focus for preparers and auditors to ensure a quality financial report, and will include:• Key focus items for recently issued standards• Common mistakes in reporting• Key questions to ask in reviewing financial report information• An easy-to-apply “top ten” issues format

11:55 am - 1:10 pm l1 lunch and Presentation of the outstanding CPa in Government award (dC only)

Presented by: Ernest A. Almonte, DiSanto, Priest & Co., Warwick, RI

Select One Concurrent Session

Choose from 2 locations!Washington, DC (Federal, State & Local Issues)

Las Vegas, nV (State & Local Issues)


Conference Agenda1:15 pm - 2:30 pm Concurrent sessions Federal (dC only) 7 oMB Update: eliminating Waste and Promoting accountability & innovation aU(G)

Debra Bond, Executive Office of the President, Washington, DCHear from the OMB about the key federal financial management issues of the day and their perspective and insight on future challenges. The session will address efforts to eliminate waste, and promote accountability and innovation through open government, including: • Addressing improper payments • Evolving and strengthening the reporting model

State & local 8 Making Your Way Through GaSB 53 a(G)Greg Driscoll, KPMG LLP, Boston, MAWith the implementation of the provisions of GASB Statement No. 53 completed for most governments, this session will discuss a number of the more challenging accounting and auditing issues encountered during implementation. The issues span many aspects of accounting and financial reporting of derivative instruments, including: • Valuation of derivative instruments • Presentation and disclosures • Identification of derivative instruments and understanding key terms • Application of hedge effectiveness methods • Termination of hedge accounting This session will also discuss new authoritative guidance and current GASB projects associated with derivative instruments, including: • 2010-2011 Comprehensive Implementation Guide Mid-Year Supplement • Deferred Inflows of Resources and Deferred Outflows of Resources: Omnibus • Derivative Instruments: Application of Hedge Accounting Termination Provisions

State & local 9 The impact of the new Group audits SaS on State & local Government audits (repeated in #14) aU(G)

Jeff Markert, KPMG LLP, New York, NYSean Walker, Clifton Gunderson LLP, Milwaukee, WIThis session with discuss the new standard on group audits. If you use the work of other auditors, this session will provide a discussion on the necessary considerations under this converged and clarified standard.

Bonus 10 avoiding Pitfalls When Using the Work of a Specialist (repeat of #5) a

2:30 pm - 2:45 pm networking refreshment break2:45 pm - 4:00 pm Concurrent sessionsFederal (dC only) 11 The department of defense: Will it Be auditable by 2017? aU(G)

Ernest A. Almonte, DiSanto, Priest & Co., Warwick, RIMark Easton, Office of the Under Secretary of Defense (Comptroller), U.S. Department of Defense, Washington, DCAsif Khan, U.S. Government Accountability Office, Washington, DCDOD leadership has renewed its commitment to improve its financial reporting, provide its managers with reliable, useful financial information, and transform its business operations. The Department’s Financial Improvement and Audit Readiness plan sets 2017 as the date for audit readiness, which is now part of Congress’ mandate for DOD financial management reform in the National Defense Authorization Act. There have been recent signs of progress, but how will DOD achieve audit readiness in 4 years? Hear the views of those responsible for making it happen, as well as the views from GAO.


Select One Concurrent Session A-133


2:45 pm - 4:00 pm 12 GaSB 54: Fund Balance Has never Been a Hotter Topic a(G)State & local Frank Crawford, Crawford & Associates, PC, Oklahoma City, OK

James Lanzarotta, Moss Adams LLP, Eugene, ORIf you haven’t heard about this yet, you’re running out of time! Fund balance classifications and governmental type definitions are changing, and they’re changing now. Join this session before it’s too late. Topics to be discussed include: • New definitions of governmental funds and fund balance classifications• Possible changes necessary to your fund structure• Discussion of recent questions and answers from early implementations

State & local 13 independence: How the 2011 Revisions to the Yellow Book impact You (repeated in #32) aU(G)

James Dalkin, U.S. Government Accountability Office, Washington, DCNancy Miller, Miller Foley Group, Fredericksburg, VAThis session will discuss the revised rules on independence included in the Yellow Book exposure draft. Differences between AICPA rules and Government Auditing Standards will be highlighted.

Bonus 14 The impact of the new Group audits SaS on State & local Government audits (repeat of #9) aU(G)4:05 pm - 5:20 pm Concurrent sessions Federal (dC only) 15 The deepwater Horizon issue (inter-agency/ inter-Governmental Cooperation) SKa

Arthur Elkins, Inspector General, U.S. Environmental Protection Agency, Office of Inspector General, Washington, DCMary Kendall, Acting Inspector General, U.S. Department of the Interior, Office of Inspector General, Washington, DCThe panel will discuss the issues that were encountered from the Deepwater Horizon oil spill in the Gulf of Mexico. The Deepwater Horizon disaster required unprecedented interagency cooperation in the immediate response to the explosion and fire, the oil-spill containment and clean-up efforts, and the multitude of investigations into the cause. Representatives from some of the key agencies involved in these efforts will discuss the challenges, and the surprising rewards associated with this massive interagency undertaking.

State & local 16 The impact of the Current economic environment on audits of State and local Governments aU(G)

Kevin Smith, Crowe Horwath LLP, Irving, TXJohn Montoro, Cherry, Bekaert & Holland, LLP, Richmond, VA (DC Only)Eric Formberg, Plante Moran PLLC, Auburn Hills, MI (NV Only)Every day, you read the news of another government in the midst of financial crisis, trying to determine a path forward. This session will provide auditors with some food for thought on how the current environment might affect the planning and performance of audits of state and local governments. Topics to be covered include:• Consideration during the planning process, including the risk

assessment process• Effect of financial stress on internal control over financial reporting • What the GASB says on going concern in a governmental environment,

as well as related guidance in the AICPA Audit Guide, State and Local Governments


Select One Concurrent Session (continued)

The AICPA’s Governmental Audit Quality Center is a member organization for CPA firms and State Audit Organizations that perform audits of

not-for-profit organizations and governmental entities, including Yellow Book audits, single audits, and other compliance audits. The Center promotes the highest quality audits by providing its members with important information through electronic alerts and member web events, practice aids, tools, and other resources. In addition, members demonstrate their commitment to audit quality by meeting specific Center membership requirements designed to enhance quality. To learn more about the Center or to join go to: aicpa.org/gaQC.

Agenda-at -a -Glance

Topics and speakers are subject to change Concurrent sessions

DAy oNe / moNDAy, August 22 (DC) / moNDAy, september 19 (NV)7:00 am - 5:20 pm registration and message Center open

7:30 am - 8:30 am Continental breakfast

8:30 am - 8:40 am Welcome and introduction

8:40 am - 9:30 am 1 the Dodd-frank Act: What every CpA should Know

9:30 am - 10:20 am 2 gAsb and fAsAb update

10:20 am - 10:40 am Networking refreshment break

10:40 am - 11:55 am

sele

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one 3 How is the federal government Dealing

with the financial Crisis?4 internal Controls: my Clients Do Not

Have Any (repeated in #28)5 Avoiding pitfalls When using the Work

of a specialist (repeated in #10)6 top 10 Deficiencies in financial reporting

11:55 am - 1:10 pm Lunch and L1 presentation of the outstanding CpA in government Award (DC only)

1:15 pm - 2:30 pm

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one

7 omb update: eliminating Waste and promoting Accountability & innovation

8 making your Way through gAsb 53 9 the impact of the New group Audits sAs on state & Local government Audits (repeated in #14)

10 Avoiding pitfalls When using the Work of a specialist (repeat of #5)

2:30 pm - 2:45 pm Networking refreshment break

2:45 pm - 4:00 pm

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one

11 the Department of Defense: Will it be Auditable by 2017?

12 gAsb 54: fund balance Has Never been a Hotter topic

13 independence: How the 2011 revisions to the yellow book impact you (repeated in #32)

14 the impact of the New group Audits sAs on state & Local government Audits (repeat of #9)

4:05 pm - 5:20 pm 15 the Deepwater Horizon issue (inter-Agency/ inter-governmental Cooperation)

16 the impact of the Current economic environment on Audits of states and Local governments

17 the Do’s and Don’ts of fraud interviewing 18 single Audit update (repeated in #31)

5:20 pm - 6:20 pm Networking reception

DAy tWo / tuesDAy, August 23 (DC) / tuesDAy, september 20 (NV)7:00 am - 4:20 pm registration and message Center open

7:00 am - 8:15 am Continental breakfast

7:00 am - 7:50 am

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one

19 Assessing it Controls at service organizations (for Auditors & Agencies)

20 subrecipient monitoring from the Auditee and Auditor perspective (repeated in #35)

21 single Audit tools: using What is Available to Help ensure Audit Quality

22 An AiCpA ethics update

8:05 am - 8:15 am Announcements and introductions

8:15 am - 9:05 am 23 fiscal pressures on federal, state and Local governments

9:05 am - 9:55 am 24 gAo and Asb update

9:55 am - 10:15 am Networking refreshment break

10:15 am - 11:30 am

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one 25 inspector general Community initiatives 26 gAsb’s New & upcoming standards 27 implementing the Clarified sAss:

Where Are the Hot spots?28 internal Controls: my Clients Do Not

Have Any (repeat of #4)

11:30 am - 1:00 pm Lunch and L2 presentation

1:05 pm - 2:20 pm

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29 best practices for reducing improper payments and strengthening program integrity in federal programs

30 perspectives on pensions from gAsb and the Audit Community

31 single Audit update (repeat of #18) 32 independence: How the 2011 revisions to the yellow book impact you (repeat of #13)

2:20 pm - 2:35 pm Networking refreshment break

2:35 pm - 3:25 pm

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33 implementing effective integration of it into financial Audits

34 peer review: tips for getting ready 35 subrecepient monitoring from the Auditee and Auditor perspective (repeat of #20)

36 beyond financial statement and Compliance Audits: When Are you in or out of sAs 117?

3:30 pm - 4:20 pm

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one 37 Auditing Considerations in the Cloud 38 Q&A 39 single Audit findings: getting it right 40 for-profit Compliance Audits:

A New trend

4:20 pm Conference Adjourns

WorKsHops (additional fee) WAsHiNgtoN DC / WeDNesDAy, August 24 LAs VegAs, NV / suNDAy, september 188:30 am - 12:15 pm 101 the basics of using the omb Compliance Supplement 102 performance Audits: A growing trend

12:15 pm - 1:15 pm Lunch (Lunch will only be provided for individuals attending a full day of optional workshops.)

1:15 pm - 5:00 pm select one

103 the real Adventures of sampling in a single Audit: Concepts, strategies, and techniques you Can use

104 forensic tools and Data mining: How Data mining Can be used in risk Assessments

select one

tracks fEDERAL boNuSSTATE/LoCAL


Conference Agenda4:05 pm - 5:20 pm 17 The do’s and don’ts of Fraud interviewing aUState & local David Cotton, Cotton & Company LLP, Alexandria, VA

Frank Crawford, Crawford & Associates, PC, Oklahoma City, OKAuditors have always been pretty good at “fact verification” interviews (“Is the accounting system actually functioning as the documentation says?”). But, fraud detection responsibilities require a different type of interviewing technique – “knowledge finding” interviews. Auditors are almost never in a position to see fraud being committed, but employees are. Auditors need to learn to conduct interviews so that they learn what employees know. This session will demonstrate how to conduct these important interviews – what to ask and how to ask it – to enable more frauds to be detected.

Bonus 18 Single audit Update (repeated in #31) aU(G)Corey Arvizu, Heinfeld, Meech & Co., Tucson, AZMary Foelster, AICPA, Washington, DCSingle audits are an important accountability mechanism for the expenditure of federal funds, especially in light of the Recovery Act. They can also be complex engagements, and have been prone to audit quality issues. This session is intended to provide attendees with: • The latest news and information relating to single audits from the

federal agencies • Important developments in the 2011 Compliance Supplement• What is new from an auditing perspective• Updates from the AICPA Governmental Audit Quality Center

5:20 pm - 6:30 pm networking reception

MAIN CoNfERENCE TuESDAY, AuguST 23 (DC) & SEPTEMbER 20 (NV) / DAY TWo

7:00 am - 4:20 pm registration & Message Center open7:00 am - 8:15 am Continental breakfast 7:00 am - 7:50 am early riser sessions Federal (dC only) 19 assessing iT Controls at Service organizations (for auditors and agencies) SKa

Robert Dacey, U.S. Government Accountability Office, Washington, DCMany government agencies place significant reliance on external service organizations (some of which may be other government agencies) to process transactions, maintain accounting records, and develop financial reports. This session will discuss what the agency management and auditor need to know about preparing and evaluating reports on controls at service organizations under the new attestation and audit standards that replace SAS 70, and the related audit guides currently under development.

State & local 20 Subrecipent Monitoring from the auditee and auditor Perspective (repeated in #35) aU(G)

Kevin Smith, Crowe Horwath LLP, Irving, TXThis session will cover the OMB Circular A-133 requirements for subrecipient monitoring from both the auditee and auditor perspective. The session will focus on what is an effective monitoring process for entities subject to A-133, as well as for-profit entities.

State & local 21 Single audit Tools: Using What is available to Help ensure audit Quality aU(G)

Corey Arvizu, Heinfeld, Meech & Co., Tucson, AZMary Foelster, AICPA, Washington, DCThe AICPA Governmental Audit Quality Center regularly recommends that its members use various available tools and resources to help ensure a quality single audit. Come to this session to learn about these tools and resources, such as: • Helping staff learn the basics• Checklists, publications, and illustrations available• Other information to consider



A-133

A-133

A-133


7:00 am - 7:50 am 22 an aiCPa ethics Update ReBonus Nancy Miller, Miller Foley Group, Fredericksburg, VA

This session will provide important information about what is happening with the AICPA ethics requirements, including:• An overview of recent ethics changes and interpretations• A status of the Codification project• A practical review of violations noted in governmental and compliance audits

8:05 am - 8:15 am announcements & introductions8:15 am - 9:05 am general session 23 Fiscal Pressures on Federal, State and local Governments a(G)

John Arnold, State of Arizona, Phoenix, AZFrank Crawford, Crawford & Associates, PC, Oklahoma City, OKMichelle Sager, U.S. Government Accountability Office, Washington, DC (DC Only)Stan Czerwinski, U.S. Government Accountability Office, Washington, DC (NV Only)Over the last several years, governments at all levels have experienced the worst revenue loss in recent memory. In this session, panelists with expertise in the federal, state and local government environment will discuss:• The depth of revenue loss • Spending constraints that limit government ability to raise revenue or

reduce expenditures • Steps their respective governments have taken to adjust to revenue losses • The future outlook for government revenues

9:05 am - 9:55 am general session 24 Gao and aSB Update aU(G)

Charles Landes, AICPA, Washington, DC (DC Only)James Dalkin, U.S. Government Accountability Office, Washington, DCAlthough the issuance of new auditing standards has slowed down, the profession hasn’t. This session will discuss the initiatives and projects being undertaken to improve the quality of audits and financial reporting, and how they impact CPA firms and their governmental audit clients: • The Clarity Project is coming to an end • How the clarified standards will affect your 2012 audits • SSAE 16 and how SAS 70 has changed • The continuing saga of internal control over financial reporting • Other new and proposed auditing standards as well as other initiatives

designed to improve the quality of auditing9:55 am - 10:15 am networking refreshment break10:15 am - 11:30 am Concurrent sessions Federal (dC only) 25 inspector General Community initiatives aU(G)

Phyllis Fong, U.S. Department of Agriculture, Washington, DCLeaders from the federal Inspector General (IG) community will discuss current IG council initiatives, hot topics in the audit community, training and professional development, and challenges on the horizon. The session will include a lively question and answer segment.

State & local 26 GaSB’s new & Upcoming Standards a(G)Ken Schermann, Governmental Accounting Standards Board, Norwalk, CT (DC Only)David Bean, Governmental Accounting Standards Board, Norwalk, CT (NV Only)This session will provide an overview of the recently released and recently effective GASB standards to help participants prepare for upcoming pronouncements with a review of the projects currently on the GASB’s technical agenda. Some of the topics covered include: • Chapter 9 bankruptcies • Service concession arrangements • The financial reporting entity • Codification of pre-1989 FASB and AICPA pronouncements • Reporting deferred inflows and outflows • Government combinations • Fiscal sustainability




Conference Agenda10:15 am - 11:30 am 27 implementing the Clarified SaSs: Where are the State & local Hot Spots? aU

Randy Roberts, Office of the Auditor General, State of Arizona, Phoenix, AZ After several years of exposure drafts and final standards associated with the Auditing Standards Board’s Clarity Project, we finally have a full set of clarified auditing standards. This session will discuss how the new standards will affect practice, including: • How to use the new clarified standards • Which standards have significant changes • Which standards may change your practice now that the standards have “clarity” • Strategies for preparing for implementation

Bonus 28 internal Controls: My Clients do not Have any (repeat of #4) a11:30 am - 1:00 pm Lunch12:10 pm - 1:00 pm Lunch presentation l2 Gao’s Perspectives: a Period of daunting Challenges and Significant Change (dC only) a(G), aU(G)

Gene Dodaro, Comptroller General, U.S. Government Accountability Office, Washington, DCOur nation is facing significant challenges related to fiscal sustainability and debt, economic recovery, demographic changes, and a fundamental re-evaluation of the role and structure of government programs. Citizens expect government to be more responsive, timely, coordinated, transparent, and accountable. The nature of governance is changing as lines between the public, private, and nonprofit sectors shift. In its role of serving the Congress and the American people, GAO seeks to help position the government to better manage risks that could compromise the nation’s security, health, and solvency.

l2 leadership needed to ensure our nation’s Fiscal Sustainability (nv only) a(G)

David M. Walker, CEO and Founder, Come Back America Initiative, New York, NYOur nation needs more truth, political courage, and sensible solutions in order to put our nation’s finances in order, and secure the future of a strong America. Our political system and the American people need to face the facts and address the real drivers behind the huge structural deficits and mounting debt burdens. These include demographic trends, mounting interest costs, unrealistic healthcare commitments, and a growing gap between projected revenues and expenditures over time. Dramatic and politically courageous actions are needed sooner rather than later if we are to avoid a U.S. debt crisis and help to ensure that our future is better than our past.

1:05 pm - 2:20 pm Concurrent sessions Federal (dC only) 29 Best Practices for Reducing improper Payments and Strengthening Program integrity in Federal Programs aU(G)

Sheila Conley, U.S. Department of Health & Human Services, Washington, DCKinney Poynter, The National Association of State Auditors, Comptrollers and Treasurers, Lexington, KYThis session will present best practices at the federal and state levels for increasing the return on investments designed to reduce improper payments, and strengthen program integrity throughout federally funded programs. Participants will learn about new approaches, tools/techniques, and new opportunities for collaboration that are yielding results.




1:05 pm - 2:20 pm 30 Perspectives on Pensions from GaSB and the audit State & local Community a(G)

Michelle Czerkawski, Governmental Accounting Standards Board, Norwalk, CT (DC Only)David Bean, Governmental Accounting Standards Board, Norwalk, CT (NV Only)Jeff Markert, KPMG LLP, New York, NYAfter several previous due process projects, the Governmental Accounting Standards Board (GASB) is expected to issue an exposure draft to revise its pension accounting and financial reporting standards in June. This session will pair up a GASB staff person with a practitioner to cover the proposed standards, both for pension plans and for employers that provide pension benefits. Questions addressed during the sessions will include: • What impact would the proposed changes have on information currently

presented in financial reports?• What issues should auditors be contemplating with the potential new

standards, and also, what issues are out there today with the current standards?• What is the expected timing of the final standards and potential effective date?

State & local 31 Single audit Update (repeat of #18) aU(G)Bonus 32 independence: How the 2011 Revisions to the Yellow Book impact You (repeat of #13) aU(G)2:20 pm - 2:35 pm networking refreshment break2:35 pm - 3:25 pm Concurrent sessions Federal (dC only) 33 implementing effective integration of iT into Financial audits aU(G)

Mickie Gray, U.S. Government Accountability Office, Washington, DCDavid Hayes, U.S. Government Accountability Office, Washington, DCStuart Henderson, The Henderson Group, Bethesda, MDToday’s financial audit engagements must identify and be responsive to the risks that emanate from, and are affected by, computer systems and electronically transmitted information. This session will use the standards and the presenters’ hands-on experience to show how to get the IT coverage and results you need on your audit. Hand-outs that will help audit planning and engagement management will be provided.

State & local 34 Peer Review: Tips for Getting Ready SKaJim Brackens, AICPA, Durham, NCJon Rymer, Federal Deposit Insurance Corporation, Arlington, VA (DC Only)Tammie Brown, U.S. Department of Health & Human Services, Kansas City, MO (NV Only)This session will address the AICPA’s Peer Review process for ensuring that audit organizations design systems of quality control, comply with those systems, and have assurance of conforming to applicable professional standards. At GAAC East, both the AICPA’s and federal Inspector General audit community’s peer review processes will be addressed; at GAAC West, the AICPA’s and the state auditor community’s will be covered. Included in the presentation will be the history and requirements for conducting peer reviews, current peer review guidance, training, overall results, and reporting responsibilities. Participants will gain a fuller understanding of the benefits and importance of this process in ensuring quality in audit organizations as well as the means by which to be best prepared for a peer review of the participants’ audit organizations.

State & local 35 Subrecipent Monitoring from the auditee and auditor Perspective (repeat of #20) aU(G)Bonus 36 Beyond Financial Statement and Compliance audits: When are You in or out of SaS 117? aU(G)

Randy Roberts, Office of the Auditor General, State of Arizona, Phoenix, AZSAS 117 describes the requirements when performing a financial statement and compliance audit that meets certain conditions. What types of audits and which standards to follow become the next really big questions if your engagement does not fall within SAS 117. Come to this session to see how it all works. Discussion will include: • Examples of when you are in or out of SAS 117 • Determining which type of audit(s) may meet your objectives • Selecting the right professional standard to follow in your engagement



A-133

A-133


Conference Agenda3:30 pm - 4:20 pm Concurrent sessions Federal (dC only) 37 auditing Considerations in the Cloud SKa

Jim DeVaul, KPMG LLP, Washington, DCErick Boxhoorn, KPMG LLP, Washington, DCThis session will cover the basics of cloud computing, its perceived security risk, and techniques for auditors to gain assurance of the IT controls of cloud computing providers.

State & local 38 Q&a a(G), aU(G)Panel to be determined onsite

State & local 39 Single audit Findings: Getting it Right aU(G)Barbara Cevallos, Harvard Medical School, Boston, MA (DC Only)Kim McCormick, Grant Thornton LLP, San Francisco, CA (DC Only)Eric Formberg, Plante Moran PLLC, Auburn Hills, MI (NV Only)This session will explore best practices and audit responses when exceptions and deviations are found in a Circular A-133 audit. Topics include:• Instances of noncompliance have been found, now what?• Modifying compliance testing when internal control deviations are identified• Determining questioned costs and likely questioned costs• Schedule of findings and questioned costs• Writing a finding that meets the content requirements of Circular A-133

Bonus 40 For-Profit Compliance audits: a new Trend aU(G)Kristin Hunt, Plante Moran PLLC, Auburn Hills, MIMany commercial organizations are now receiving federal and state grant monies (i.e., ARRA, TIP). Great news, right? Not so fast. Many of these grants have specific program and compliance requirements attached to the funding and require multi-year compliance audits. This session will cover: • Learn how to identify specific program and compliance requirements• Design program specific compliance auditing procedures• Example reporting on program specific compliance

4:20 pm Conference adjourns

Chair

Members

frank Crawford, Crawford & Associates, PC, Oklahoma City, OK

steering Committee

aiCpa staff

Melinda arndt, Conference Logistics, Durham, NCMary foelster, Director, Governmental Auditing and Accounting, Washington, DCLisa gebler, Project Manager, Durham, NC

barbara Cevallos, Harvard Medical School, Boston, MADiane Dudley, KPMG LLP, Washington, DCeric formberg, Plante Moran, PLLC, Auburn Hills, MIJeanette M. franzel, U.S. Government Accountability Office, Washington, DCJeff green, Kearney and Company, Alexandria, VAJoel grover, Department of the Treasury, Office of Inspector General, Washington, DCrandy roberts, Office of the Auditor General, Phoenix, AZKevin smith, Crowe Horwath LLP, Irving, TX sean Walker, Clifton Gunderson LLP, Milwaukee, WI


A-133


4 Ways to

register

fast

onLine*: www.cpa2biz.com/conferences PhoNE*: 1.888.777.7077 or 1.919.402.4500faX*: 1.800.362.5066 or 1.919.419.4795 MaiL: Complete and mail the form along with your promotion code to:AICPA Member Service Center, Conferences, 220 leigh farm Road, Durham, NC 27707-8110*Credit card registration only (AICPA VISA® **, American Express® , Diners Club® , Discover® , MasterCard® or VISA® )**If you use an AICPA credit card, you can earn 5 points per dollar spent on AICPA Conference purchases. To learn more or apply, visit www.cpa2biz.com/bankofamerica

reCoMMenDeD Cpe CreDit 17 (main), up to 8 (optional) This conference was prepared in accordance with the Joint AICPA/NASBA Statement on Standards for Continuing Professional Education (CPE) Programs effective on January 1, 2002. The recommended CPE Credits are in accordance with these standards; however, your individual state board is the final authority on the acceptance of programs for CPE credit.ConferenCe fee Registration fees are determined by current membership status in the AICPA. Please indicate member number on the registration form to obtain the correct discount. Conference fee includes all sessions, conference materials, continental breakfasts, refreshment breaks, luncheons and a reception. Fee for value-added workshops includes all session materials and refreshment breaks. Registration for 2 or more individuals at the same time may qualify for group discounts; additional savings may be available for groups of 10 or more. For more information please call the AICPA Service Center at 888.777.7077 (9AM-6PM ET). program Code: gaaCeast11 (DC) anD gaaCWest11 (nV)

Dress CoDe Business CasualCanCeLLation poLiCy You may cancel without penalty if written cancellation requests are received by 7/8/11 (DC) – 8/5/11 (NV). Due to financial obligations incurred by the AICPA, a credit voucher less 50% of the registration fee will be issued for written requests received by 8/1/11 (DC) – 8/29/11 (NV). No refunds or credits will be issued on cancellation requests received on or after 8/2/11 (DC) – 8/30/11 (NV). For further information, call the AICPA Service Center at 888.777.7077. hoteL anD grounD transportation inforMation Contact the hotel directly to obtain their policy on reservations, deposits and cancellations. Rooms will be assigned on a space-available basis only. To receive our special group rates mention that you will be attending the aiCpa national governmental accounting and auditing update Conference.

JW Marriott hotel the Venetian/palazzo hotel 1331 Pennsylvania Avenue 3325 Las Vegas Blvd. South Washington, DC 20004 Las Vegas, NV 89109 Hotel Phone: 202.393.2000 Hotel Phone: 702.607.7777 Hotel Reservations: 800.266.9432 Hotel Reservations: 866.263.3001 Online Hotel Reservations: http://tiny.cc/gaaceast11 Online Hotel Reservations: http://tiny.cc/gaacwest11 Hotel Room Rate: $189 single/doubleh Hotel Room Rate: $174 single/doubleh Hotel Reservation Cutoff Date: July 21, 2011

hNote that a limited number of rooms is available at governmental rate. The rate and quantity of rooms is determined by the hotel, and valid government ID must be presented at check-in to receive this rate. Please contact the hotel to make these reservations.

airLine inforMation The AICPA has a special arrangement with Maupin Travel, Inc. of North Carolina to assist you with your travel arrangements. This travel agency may be reached at 800.345.5540. If you prefer to make your own travel plans, be sure to mention the participating airline’s reference number (listed below) to take advantage of deeply discounted “Zone Fares” that do not require a Saturday night stay-over. Discounts are valid for round trip registered AICPA meetings or conferences only. Some restrictions may apply. american airlines 800.433.1790 Index #21445 united airlines 800.521.4041 Refer to Meeting ID #531SI Delta airlines 800.328.1111 Refer to Meeting ID #NM66P For up-to-date airline information regarding special travel discounts, please visit cpa2biz.com/conferences. Due to recent airline industry fare restructuring, we cannot guarantee that the above group travel agreements will be in effect at the time when you are making your travel arrangements. Please contact the airline and/or your travel agency for latest applicable discounts and arrangements.Car rentaL hertz Car rental — AICPA Member Discounts: Call 800.654.2240. Ref. Code CV#021H0018. Airline and car rental discounts are available only when you or your travel agent book through the 800 number. We strongly advise you to confirm your conference registration and hotel reservation prior to making your travel plans.

eXhibit anD sponsorship opportunities Don’t miss the opportunity to present and sell your organization’s services and products to thousands of CPAs and financial professionals at AICPA conferences. For detailed information on conference exhibit and sponsorship opportunities, please send your email to [email protected].

Taxi Service: $18-$22 each way, 15 min. Shuttle Service: $14 each way, 30-40 min. hotel Parking: Valet $44.80 per day

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Documents

National Governmental Accounting and Auditing Update · PDF fileNational Governmental Accounting and Auditing Update august 22-23, 2011 JW Marriott Hotel Pennsylvania Avenue Washington,