The University of Toledo Finance and Audit Committee · 2017-01-16 · May 16, 2016 The University of Toledo Finance and Audit Committee 2016 Audit Planning Meeting. Place logo on

May 16, 2016

The University of Toledo Finance and Audit Committee

2016 Audit Planning Meeting

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1

January 9,

2006

The University of Toledo Audit Planning Agenda

• UT Audit Team

• Reporting and Responsibilities

• Audit Approach

• Current Year Audit Topics

• Emerging Audit Topics

• Timing and Key Dates

• GAO Standards and Peer Review Report

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January 9,

2006

The University of Toledo UT Audit Team

Robb Rose Audit Partner 419.842.6188 [email protected]

Chad Schafer Partner– HSC Audit 248.223.3567 [email protected]

Suzy Walch Manager - Audit & Single Audit 419.842.6211 [email protected]

Jacob Bialy In Charge - Audit & Single Audit 419.842.6180 [email protected]

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3

January 9,

2006

The University of Toledo Reporting and Responsibilities

Plante Moran Responsibilities

• To express an opinion on University Financial Statements

• To express an opinion on Major Federal Programs

• To provide reasonable Assurance

• To gain an understanding of Internal Controls

Plante Moran Reports/Letters

• Opinion on University and Federal Programs

• Report on Internal Control over Financial Reporting (GAS)

• Report on the Conduct of the Audit

• NCAA Agreed Upon Procedures

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4

January 9,

2006

The University of Toledo Audit Approach – Financial Statements

Review Internal Controls of Paperless

Systems

Risk Based

Approach

Documentation and Testing of Key

Processes

Group Audit

Standards

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5

January 9,

2006

The University of Toledo Audit Approach – Financial Statements

• Financial Statement Audit

• Report letter

• Emphasis-of-matter paragraphs will be in the report letter for 2016 due to the significant balance of alternative investments on the University’s statements of net position and for the change in accounting for the adoption of GASB Statement No. 72, Fair Value Measurement and Application

• Group Audit Standards – Plante Moran will be serving as the “Group Auditor”

• University of Toledo, Clinical Faculty, the sole member of University of Toledo Physicians, LLC and UT Medical Assurance Company are considered components. These components are audited by other auditors who are considered the component auditors.

• Plante Moran will assume responsibility for the work done by the component auditors

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6

January 9,

2006

The University of Toledo Audit Approach – Federal Programs Audit

Compliance testing of Federal Regulations as defined by the Office of Management and Budget (OMB)

Major Programs for 2016

• Student Financial Aid cluster

• Other programs

• If over $750,000 and not tested in the last 2 years

• If less than $750,000 and considered high risk

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7

January 9,

2006

The University of Toledo Audit Approach – NCAA

• Published Procedures for Revenue and Expense Testing

• A significant sample of transactions across most revenue and expense categories are tested

NCAA

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8

January 9,

2006

The University of Toledo Audit Approach – Other Items

• Performs Student Financial Aid Cluster testing

• Performs NCAA procedures

• IT review/assessment (in conjunction with Plante Moran IT team)

• Review of IA reports

Internal Audit

• Plante Moran Threshold

• Based on Users of Statements

Materiality

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9

Timing of audit work will ensure that draft financial statements will be presented to the Audit Committee of the Board of Trustees in October 2016.

Plante Moran has been advised

• University is in compliance with laws and regulations

• No material acts of fraud (including $25,000 to federal program)

• No unusual accounting entries

• No illegal or improper acts

Audit Committee

Communications

• Fraud Inquiry

• All PM Services Provided

• Independence (GAO)

• Passed Adjustments

• Changes in Report Presentation, if applicable

The University of Toledo Audit Approach – Communications

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10

The University of Toledo GASB Rule Changes Continue

FY 2016

•GASB 72

• Issued February 2015

• Includes additional footnote disclosures related to investments

FY 2017

•GASB 73, 74, 77-80 – Minimal/no impact

Future (GASB Exposure Drafts)

• GASB 75 (FY 2018) • Issued June 2015

• Accounting and Reporting for Other Postemployment Benefit Plans (OPEB)

• Leases – Exposure draft

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11

Federal Office of Management and Budget (OMB) Uniform Guidance

• Uniform Guidance related to grants management

• “Single Audit” replaces the term “A-133 Audit”

• Uniform Guidance has impacted the University for new awards and amendments after December 26, 2014

• Auditing Standards become effective for the FY 2016 audit

Federal Perkins Loan Program

• Federal Perkins Loan Program (FPLP) expired September 30, 2015.

• In December 2015, Congress extended the program through September 2017.

• Extension requires UT to provide notice to Perkins borrowers regarding the end to future loans.

• Federal guidance will be available later in 2016 regarding the return of UT’s Perkins revolving funds to the Department of Education.

University of Toledo

The University of Toledo Emerging Issues

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12

January 9,

2006

The University of Toledo Timing and Key Dates

Opening Conference with Executive Management April 13, 2016

Detailed audit plan and list of prepared by University schedules provided May 6

Audit scope presentation to Finance & Audit Committee May 16

Preliminary fieldwork begins June 13

Single audit fieldwork begins June 13

Progress conference TBD

Year-end field work conference TBD

University finalizes accounting records TBD

Year-end Fieldwork begins – Health Science Campus August 22

Year-end fieldwork begins – Main Campus August 29

University provides draft audit reports September 12

Submission of draft management letter to administrative staff, if applicable September 12

Draft meeting with President October 3

Mailing of final statements to Finance and Audit Committee October 4

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13

January 9,

2006

The University of Toledo Timing and Key Dates (continued)

Presentation of audited statements (including Single Audit report) and

management letter to Audit Committee

October 10

Review of draft Single Audit report in detail with administrative staff October 7

Delivery of printed audited statements for the University to the Auditor of State October 14

Final Single Audit report to be issued to the University October 14

NCAA Agreed Upon Procedure October 31

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14

The University of Toledo GAO Standards and Peer Review Report

In accordance with Generally Accepted Government Auditing Standards (GAO Standards), we are required to communicate all noncompliance with provisions of laws, regulations, contracts, or grants that have a material effect on the financial statements that comes to our attention. GAO standards also require that we report any instances of abuse identified during that audit that could be quantitatively or qualitatively material to the financial statements. Under the Government Accounting Office (GAO) requirements, if a federal expenditure audit is being performed, prior to commencement of audit work, the Audit Committee and/or Board of Trustees are required to receive from the audit firm the Peer Review Report (this is performed every three years – last report is from 2013 for Plante Moran).

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15

The University of Toledo Peer Review Report

Thank You! We look forward to continue

serving The University of Toledo.

plantemoran.com

Higher Education Group

Robb Rose, Partner

419.842.6188

[email protected]

Chad Schafer, Partner

248.223.3567

[email protected]

Suzy Walch, Manager

419.842.6211

[email protected]

Documents

The University of Toledo Finance and Audit Committee · 2017-01-16 · May 16, 2016 The University of Toledo Finance and Audit Committee 2016 Audit Planning Meeting. Place logo on