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Audits of Small Governments

Audits of Small Governments. Unraveling the Mystery of Auditing. May 7, 2012. Presented by: Debbie Goode, CPA Partner Carr, Riggs & Ingram, LLC, CPA’s and Advisors 215 Baytree Drive Melbourne FL 32940 321-255-0088. Planning Phase. “Exceeding Expectations”. Client Acceptance

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Audits of Small Governments

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  1. Audits of Small Governments Unraveling the Mystery of Auditing May 7, 2012 Presented by: Debbie Goode, CPA Partner Carr, Riggs & Ingram, LLC, CPA’s and Advisors 215 Baytree Drive Melbourne FL 32940 321-255-0088

  2. Planning Phase “Exceeding Expectations” Client Acceptance Review prior Auditor workpapers Planning meeting with client Read all relevant documents, including minutes

  3. Planning Phase (continued) “Exceeding Expectations” Assess internal controls and walkthroughs Calculate materiality Assess risk, including fraud risk Develop audit program Audit team planning meeting

  4. How is materiality calculated? “Exceeding Expectations” Governmental activities, business-type activities by major fund, aggregate discretely presented component units, all aggregately remaining fund info Planning materiality Tolerable misstatement Low risk/high risk by area Passed AJE’s

  5. Types of Audit Testing “Exceeding Expectations” Substantive Internal Control Compliance Analytics

  6. Efficient Audits “Exceeding Expectations” Planning meeting PBC list Send auditors information in advance Internal controls documented

  7. Efficient Audits (continued) “Exceeding Expectations” Walk-throughs before year end Fraud confirms Confirms out before audit fieldwork Audit fieldwork – auditors in field

  8. Efficient Audits (continued) “Exceeding Expectations” Exit conference with partner involved Go over financial statement draft/reports/comments Signed rep letters Partner presents to Council

  9. Reports Issued “Exceeding Expectations” Audit Report Internal control and compliance Single Audit internal control and compliance* Auditor General of Florida requires management letter *if applicable

  10. Compliance with Florida Law “Exceeding Expectations” Level of testing up to auditor. Bid testing. Travel and entertainment. Change annually.

  11. Financial Condition Assessment “Exceeding Expectations” Benchmarks against similar size entities – population or revenues. Looks at five year trends. Favorable, unfavorable, inconclusive. If unfavorable > 60%, auditor must report. Can pull out entities not truly comparable.

  12. Internal Controls “Exceeding Expectations” Significant material deficiency Significant deficiency Remainder - Management Letter comments

  13. Data Collection Form “Exceeding Expectations” If have federal single audit, required. Must be filed earlier than 30 days after receipt of auditor’s reports or nine months after fiscal year end.

  14. Single Audit Reports “Exceeding Expectations” Schedule of Expenditures of Federal Awards and State Financial Assistance Internal control and compliance over Federal awards and/or State financial assistance. Schedule of Findings and Questioned Costs Summary Schedule of prior year audit findings. Corrective Action Plan

  15. Single Audits – Federal and State “Exceeding Expectations” When do you need one? $500,000 of expenditures during year How to identify major programs: Type A Type B ARRA

  16. Single Audits – Federal and State (continued) “Exceeding Expectations” Must calculate materiality for all major programs. Must document controls in place and test they are functioning.

  17. Single Audits – Federal and State (continued) “Exceeding Expectations” Testing based on CFDA and CSFA (see Compliance Supplement Matrix – www.whitehouse.gov/omb/circulars/A133_compliance_supplement2011) Test for compliance to grant agreement and compliance supplement.

  18. Schedule at a Glance Tuesday May 8, 2012 10:00 a.m. - 11:40 a.m.  GFOA CAFR Award Program – Linda Dufresne and Sarah Koser 10:00 a.m. - 11:40 a.m.  How to Invest With Fewer Dollars? – Jeff Larson, Linda Senne and Jeffrey Yates 10:00 a.m. - 11:40 a.m.  Strategies to Address Aging Infrastructure – Celine Hyer 10:00 a.m. - 11:40 a.m.  Making Technology Work for You! – Steve Murray and Darrel Thomas 10:00 a.m. - 11:40 a.m.  Debt Affordability & Policies – Mickey Miller

  19. 2:00 p.m. - 2:50 p.m.  Statewide Chart of Accounts Project – Elwood McElhaney 2:00 p.m. - 2:50 p.m.  Gimmie A Budget Light Please! – Brenda Raver 2:00 p.m. - 2:50 p.m.  Ethics Review – Peggy McGarrity 2:00 p.m. - 2:50 p.m.  Career Development: Building the Next Finance Director – Mark Fostier, Binh Nguyen, Diane Reichard and Jamie Roberson 2:00 p.m. - 2:50 p.m.  Pension Risk Management and Asset Allocation – Kevin SigRist

  20. 3:10 p.m. – 4:50 p.m.  Are You Audit-Ready? – Deborah Garringer and Bill Spinelli 3:10 p.m. – 4:50 p.m.  Fraud, Internal Controls and Segregation of Duties for Small Governments – Angela Balent and C. Michelle Blackstock 3:10 p.m. – 4:50 p.m.  Preserving Your Reserves – Jason Brown 3:10 p.m. – 4:50 p.m.  Yikes! You’ve Been Hacked! – Princessa Brown 3:10 p.m. – 4:50 p.m.  Review of the Dodd-Frank Act – Jim Reilly and Ravi Subbaraya

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