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3 Agency Audit Plan Inherent Benefits More Frequent Contact with Annual Audits: Strengthen lines of communication Use Audit Services as an information resource More expedient audits Timely Communication: Central location for all agency audit communication: Communication Commitment: Audit Services is committed to responding to any agency audit communication within three business days We request agencies follow a similar communication timeframe and respond to Audit Services communication within three business days
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Office of the Chief Financial OfficerAgency Audit Services
Agency Audit Plan Overview
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Agency Audit PlanStructure
The Agency Audit Service Team (Audit Services) will audit all agencies annually, rather than on the previous three-year rotating basis
Each year, different sections will be addressed with agencies
Agency SMART Payments Capital Assets Accounts Receivable Money Outside the State Treasury (MOST)
Not all sections will be reviewed each year, but each section will be addressed at least once in a three-year cycle
To be respectful of budget time, annual agency audits will not begin until after September 15th
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Agency Audit PlanInherent Benefits
More Frequent Contact with Annual Audits: Strengthen lines of communication
Use Audit Services as an information resource
More expedient audits
Timely Communication:
Central location for all agency audit communication: [email protected]
Communication Commitment:
Audit Services is committed to responding to any agency audit communication within three business days
We request agencies follow a similar communication timeframe and respond to Audit Services communication within three business days
Agency Audit PlanTimeline
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Every Agency,
Every Year
Every Year
Agency SMART Payments -
Bond Disclosure
Outstanding Findings
Year-AConducted in FY
16
Capital Assets Desk Audit-FY 14 and FY 15
Accounts Receivable Desk
Audit-FY 15
Year-BConducted in FY
17
MOST Desk Audit- FY 16
Year-CConducted in FY
18
Capital Assets*Desk Audit-FY
16*Physical
Verification-FY 18
Physical count of MOST-FY 18
Agency Audit Plan
Conducted Every Year
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Agency Audit Plan Every Year
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Agency SMART Payments-Audit Services: Audit sample of current year transactions:
Under delegated audit authority Not currently reviewed by Audit Services via SMART workflow The 12-month period for review will run from March through February
Example-in Year B review will begin in March FY16 and end in February FY17
Audit prior year transactions when combined payments to vendors for the year exceeds delegated purchasing authority
Verify W-9s, where applicable
Agency: Provide payment support documentation or information, as requested
Bond Disclosure-
Audit Services: Verify the bond disclosure is posted on agency websites, if the agency has
their financial statements posted on their website
Outstanding Audit Findings-
Audit Services: Address any corrections or changes required from any outstanding prior year
findings
Agency Audit Plan Every Year
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Agency Audit Plan
Year A Conducted in FY 16
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Capital Assets -Audit Services: Review capital outlay purchases for FY 14 and FY 15
Review documentation provided by agency
Agency: Provide agency policy for safeguarding of assets
Verify a sample of assets, as requested by Audit Services
Provide support documentation for a sample of assets purchased and disposed for FY 14 & FY 15, as requested
Provide additional support documentation or information, as requested
Agency Audit Plan Year A
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Accounts Receivable - FY 15-Audit Services: Verify required reports for CAFR were submitted, such as DA-32
Verify delinquent accounts and collection practices follow statewide Department of Administration (DofA) policy
Review deposit adjustments for movement of money out of liability accounts
Agency: Provide policy for receivables and delinquent accounts, if appropriate
Provide fiscal year-end aging report
Provide a copy of records used to track any receivables outstanding at fiscal year end
Provide additional support documentation and information, as requested
Agency Audit Plan Year A
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Agency Audit Plan
Year BConducted in FY 17
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Petty Cash Funds Imprest Funds Change Funds Check Cashing Change Funds
Fee Funds Trust Funds Canteen Funds Work Therapy Funds Benefit Funds
Agency Audit Plan Year B
Money Outside of State Treasury (MOST) - FY 16-
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Money Outside of State Treasury (MOST) - FY16- Audit Services: Review documentation provided by agency and the FIT team Review distribution forms, bank statements, bank use, and reconciliations
forms, where applicable Review SMART vouchers for replenishment or expenditure recognition, where
applicable Review fund verification policies, where applicable Review fund restoration and check cashing practices, where applicable
Agency: Complete updated verification and maintenance forms for all funds Provide additional support documentation and information not already
submitted to the FIT team, as requested
Agency Audit Plan Year B
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Agency Audit Plan
Year CConducted in FY 18
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Capital Assets -Audit Services: Review capital outlay purchases for FY 16
Review documentation provided by agency
Complete physical verification of select capital assets
Agency: Provide updated agency policy for safeguarding of assets if any changes were
made in the last two years Provide support documentation for a sample of assets purchased and disposed
during FY 16, as requested by Audit Services Prepare for on-site visit regarding assets that have been selected by Audit
Services for verification Provide any additional support documentation or information, as requested
Agency Audit Plan Year C
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Money Outside of State Treasury (MOST) - FY 18-Audit Services: Complete physical count of selected funds on-site with agency
Verify the agency practice for the physical count of funds kept on-site with agency
Agency: Prepare for on-site visit regarding funds selected for verification
Provide support documentation or information, as requested, regarding the physical count of funds
Agency Audit Plan Year C
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Audit Plan SectionFY 2016(Year A)
FY 2017(Year B)
FY 2018(Year C)
Agency SMART
PaymentsSample Audited Sample Audited Sample Audited
Capital Assets
Desk Audit ___
On-Site Physical Verification, & Desk
Audit
Accounts Receivable
Desk Audit ___ ___
Money Outside the
State Treasury___ Desk Audit On-Site Physical Counts
/ Reconciliation
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Agency Audit Plan Recap
Every Agency, Every Year
Audits may be subject to a more in-depth review as assigned by management
Agency Audit Plan Questions and Answers
If you have any questions that were not answered today, please contact:
Janette Martin at: [email protected]
Agency Audit Services Team at: [email protected]
Statewide Policy Manual available at: http://admin.ks.gov/offices/chief-financial-officer/policy-manual 18
