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The Auditors are Coming (Part I) Prepare for Federal Program Fiscal Monitoring Visits July 26, 2006. Overall Objectives:. Assess internal controls for Federal Programs. - PowerPoint PPT Presentation
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The Auditors are Coming(Part I)
Prepare for Federal Program Fiscal
Monitoring VisitsJuly 26, 2006
Overall Objectives: Assess internal controls for Federal
Programs. Verify the completeness, accuracy,
validity, and allowability of financial information for budgeted costs claimed and reimbursed on Federal Programs
Fiscal Monitoring Selection Process
Subgrantee selected from risk based audit plan • Every subrecipient will be audited at
least once every three years (audit cycle)
Subrecipients with substantial audit findings audited more frequently.
Additional fiscal years to be audited may be added during audit fieldwork
•Business Official contacted to schedule fieldwork including
Dates of fieldwork Fiscal year(s) to be monitored Federal Programs to be examined Documentation required for review
•Confirmation letter with documentation list mailed to Business Official
Scheduling
Subgrantee Preparation
Business Official should coordinate plans for the fiscal monitoring with personnel involved • Business office personnel
• Federal Program personnel
• Human Resource personnel
• School personnel
Subgrantee Personnel
•Business Office Personnel Business Manager Accountants
• Payroll • Accounts Payable• Fixed Assets
•Federal Program Personnel Directors Managers
Subgrantee Personnel
•Human Resources Personnel Director Analysts
•School Personnel Principals School Business Managers School Fixed Asset Managers Custodians
Required Documentation
List provided with confirmation letter
Should be available for review at the beginning of fieldwork
Should be organized Contact LDOE staff with any
questions about required documentation
Required Documentation
Budgets including all revisions Requests for Funds Project Completion Reports Travel Policy Fixed Asset Policy Salary Schedule Chart of Accounts (including fund
numbers) Documentation to substantiate costs
discussed in each Object Code below
Internal Control Examine internal controls for
current fiscal year Complete questionnaire with Business
Official Ensure that internal controls are
uniformly applied to all programs Tests of specific internal controls will
be performed during fieldwork
LAUGH Object Codes
• Salaries (Object Code 100) and Related Benefits (Object Code 200)
• Purchased Professional and Technical Services (Object Code 300)
• Purchased Property Services (Object Code 400)
Specific Issues by Object Code
• Other Purchased Services (Object Code 500)
• Supplies (Object Code 600)• Property (Object Code 700)• Other Objects (Object Code 800)• Indirect Cost
Salaries (Object Code 100)
Related Benefits (Object Code 200)
Documentation• Staffing list for each federal program by
employee
• Personnel files for each federal employee
• Payroll for each federal program by employee
• Office of Management & Budget (OMB) A-87 Cost Certification form for all federal employees
Staffing Lists Should include
• Program name & CFDA number
• Employee name and identification number
• Employee position
• Beginning and ending staffing dates
• Work location of employee
Personnel Files
Should include• Employee name and identificaton
number
• Employee position
• Pay rate and benefits for each employee
• Certification & degree level (if applicable)
• Years of service Do not include evaluations or other
personnel actions
Payroll
Should include• Program name and fund number
• Employee name and identification number
• Employee position
• Pay and benefits for each period in fiscal year by type of pay (e.g. regular pay, stipend pay, insurance, retirement)
• Work location of employee
OMB A-87 Cost Certification Forms
Should include•Employee name & identification number•Position and Work location(s)•Program & CFDA number•Time period •Signature of employee and/or supervisor•Date completed
Required completion period•Semi-annual or monthly
Purchased Professional and Technical Services (Object
Code 300)
Documentation•Purchase requisitions for services•Purchase order for services•Contracts for services•Vendor invoice•Subgrantee cancelled check
Contracts may substitute for a purchase order for expenditures in this Object Code
Purchased Property Services (Object Code
400) Documentation
•Purchase requisitions for property services
•Purchase order for property services•Contracts for property services•Vendor invoice•Subgrantee cancelled check
Contracts may substitute for a purchase order for expenditures in this Object Code
Other Purchased Services
(Object Code 500) Documentation
•Purchase requisitions for other purchased services
•Purchase order for other purchased services
•Subgrantee’s Travel Policy & supporting documentation for employee travel
•Vendor invoice
•Subgrantee cancelled check
Employee Travel Reimbursement
Employee Expense Accounts•Follow the Travel Policy that covers
the period being audited Board adopted policy If no board adopted policy, then follow
State of Louisiana PPM # 49 All employee travel costs being
reimbursed must have documentation to substantiate them (e.g. agendas, sign in sheets, name tags)
Supplies (Object Code 600)
Documentation•Purchase requisitions for supplies•Purchase order for supplies•Vendor invoice•Subgrantee cancelled check
Food purchases and employee reimbursements need documentation for the corresponding activity
Late fees, interest service charges, finance charges, taxes, and alcohol are not allowable
Property (Object Code 700)
Documentation•Purchase requisitions for property
•Purchase order for property
•Vendor invoice
•Subgrantee cancelled check
•Fixed asset policy
•Fixed asset list
Property (Object Code 700)
Fixed Asset Policy•Value of fixed asset
•Acquisition procedures & forms
•Transfer procedures & forms
•Disposal procedures & forms
Property (Object Code 700)
Fixed Asset List• Maintained by Business Office (for all Federal and
state programs)• Updated on a regular basis• Reconciled to purchases at least once every two
years• Items on Fixed Asset List reported in total (e.g.
computer monitor, CPU, keypad and mouse) when purchased as a unit
• Cost should follow most restrictive of Federal, State or subgrantee definition
Federal (Code of Federal Regulations)- $5,000.00 State (LAUGH) - $1,000.00 Subgrantee (Fixed Asset Policy) – if lower than state
Property (Object Code 700)
Fixed Asset List should include•Fixed asset description
•Serial number
•Tag number
•Date purchased
•Acquisition cost
•Location
•Fund that purchased fixed asset
•Disposition date (if applicable)
Indirect Cost Approved indirect cost rate applied
to object codes 100 thru 600 Approved indirect cost rate
restricted on some programs (e.g. Title IV)
Not allowed on some federal programs (e.g. Vocational Education)
Other Objects (Object Code 800)
Catchall for costs that are not reported under any other Object Code
Flex Funds for IDEA program reported here •Supporting documentation is the same as
if reported in the normal Object Code for these costs
•Report these costs only in this Object Code or one of the other Object Codes, not both
Issues for all Object Codes
Costs should be charged to Object Codes based on the Louisiana Accounting and Uniform Governmental Handbook (LAUGH)
Costs in object codes 300 thru 700 and 800 must be paid before being included on the Request for Funds
Salaries (Object Code 100) and Related Benefits (Object Code 200) costs may be claimed for reimbursement one month in advance
Issues for all Object Codes
Subgrantee personnel (fiscal and program) should review Requests for Funds before submission
Project Completion Reports should be completed and submitted for all closed programs
Adjustments should be made on subsequent Requests for Funds based on actual amounts
Common Audit Findings Costs claimed for the wrong fiscal year Costs claimed for reimbursement with
insufficient or no supporting documentation
Incomplete or no A-87 Cost Certification Reports for salaries claimed for reimbursement
Incomplete or no fixed asset list Reporting errors (e.g. costs claimed in
incorrect object codes)
Useful Internet Links- Louisiana Department of Education
(LAUGH)•http://www.doe.state.la.us
Office of Management & Budget (Circulars)•http://www.whitehouse.gov/omb/circulars/
U.S. Department of Education (EDGAR)•http://www.gpoaccess.gov/cfr/index.html
Contact Information
Greg Becnel, Audit Supervisor, LDOE Email [email protected]
Judy Hurry, Audit Manager, LDOE Email [email protected]
P.O. Box 940641201 N. Third St. Ste. 5-130Baton Rouge, Louisiana 70804-9064Telephone: (225) 342-8848Toll Free: 1-(877)-342-453-2721Fax: (225) 342-3523