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Property Valuation Administrator

How to Get Rid of Your Auditor Faster Auditor of Public Accounts October 31, 2012. Property Valuation Administrator. Overview - Continued. Agreed-Upon Procedures – What are the Procedures and What Records do You Need to Have Available. What is an Agreed-Upon Procedures Engagement?.

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Property Valuation Administrator

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  1. How to Get Rid of Your Auditor Faster Auditor of Public Accounts October 31, 2012 Property Valuation Administrator

  2. Overview - Continued • Agreed-Upon Procedures – • What are the Procedures and What Records do You Need to Have Available

  3. What is an Agreed-Upon Procedures Engagement? • An agreed-upon procedures engagement is one in which a practitioner is engaged by a client to perform specific procedures and report findings. The practitioner does not perform an examination or provide an opinion. Rather, the practitioner reports only procedures and findings.

  4. Agreed-Upon Procedures -PVA 1. Determine if the PVA has a receipt ledger, a disbursement ledger, and reconciles bank records to books each month. Re-perform the year-end bank reconciliation (June 30, 20__), to determine if amounts are accurate.

  5. PVA Records Needed • Receipts Ledger • Disbursements Ledger • Bank Reconciliation • Bank Statements

  6. Receipts and Disbursements Ledger • Ledgers • Should be detailed and Accounts should match Budget Line-Items • Example of Accounts • Revenues: County Budgeted Statutory Contribution, City Payments, Interest, Copy Charges, etc.. • Expenditures – Personnel Cost, Office Supplies, Telephone Charges, In-State Travel, Etc…

  7. Bank Reconciliation • Performed Monthly • Reconcile Bank to Ledgers • Documented

  8. Agreed-Upon Procedures -PVA 2. Confirm any and all payments by the city to the PVA. Compare recorded city receipts to confirmed payment amounts obtained from city governments. Also review the list of city receipts for completeness.

  9. Agreed-Upon Procedures -PVA 3. Confirm any and all payments made by the fiscal court to the PVA. Compare the budgeted statutory contribution by fiscal court to the legally required amounts calculated by the Department of Revenue. Trace the fiscal court payments from the fiscal court statutory contribution budget account to the PVA’s local bank account.

  10. Records Needed • Detailed Receipts Ledger • Bank Statements • Revenue’s Statutory Contribution Letter

  11. Receipts • Any collection of any public funds should be documented by the preparation of a prenumbered receipt (KRS 64.840)

  12. Receipts (Continued) • All Public Funds Received Should Be Deposited Into The Official Bank Account On A Daily Basis • The Daily Deposit Should Be Reconciled To Receipts Ledger

  13. Agreed-Upon Procedures -PVA 4. Judgmentally select 15 disbursements from PVA records and agree amounts to cancelled checks, paid invoices or other supporting documentation. Determine if the expenditure is for official business. Review all credit card statements (If Any) to determine if expenditures are for official business.

  14. Records Needed • Detailed Disbursements Ledger • Bank Statements • Cancelled Check (Front and Back of Check) • Original Bill, Invoice, or Detailed Receipt • Original Contract or Agreement • Credit Cards: • Credit Card Statement – Not Enough • Need the Supporting Documentation for the Purchase • Original Bill, Invoice, or Detailed Receipt

  15. 4. Disbursements (Continued) • Allowable Expenditures • Dept. of Revenue Policy Amendment - PVA Office Allowable Expenditures – PVAAllowableExpenditures.pdf

  16. 4. Disbursements (Continued) • Allowable Expenses • Necessary for the Office • Beneficial to the public/county • Not personal in nature • Reasonable in amount and content

  17. 4. Disbursements (Continued) • Non-allowable Expenditures: • Any non-allowable expenditures found will have to be reimbursed by the PVA from Personal Funds.

  18. Agreed-Upon Procedures -PVA 5. Compare capital outlay disbursements with cancelled checks, supporting documentation, and proper purchasing procedures. Verify the location of newly acquired assets. Determine if Assets were added to the PVA’s Capital Asset Inventory List.

  19. Records Needed • Detailed Disbursements Ledger • Bank Statements • Cancelled Check (Front and Back of Check) • Original Bill, Invoice, or Detailed Receipt • Original Contract or Agreement • Credit Cards: • Credit Card Statement – Not Enough • Need the Supporting Documentation for the Purchase • Original Bill, Invoice, or Detailed Receipt • PVA Inventory List

  20. 5. Capital Outlay - Continued • Guidelines for the purchase of Capital Assets are established through the respective county procurement codes and/or, if chosen, the State procurement procedures. • The PVA should update annually the Office Inventory based on purchases, surplus, and disposals.

  21. Agreed-Upon Procedures -PVA 6. Scan vehicle lease agreements, personal service contracts, and professional service contracts for cost schedules and compare to actual payments. Determine if services received were appropriate, for official business, and properly authorized.

  22. Records Needed • Original Agreement or Contract • Disbursements Ledger • Cancelled Checks

  23. Agreed-Upon Procedures -PVA 7. Compare PVA’s final budget to actual expenditures to determine if PVA overspent in any account series. • Records Needed: • Original Budget • Final Amended Budget • Detailed Disbursements Ledger

  24. 7. Budget (Continued) • The PVA office budget governs the use of all PVA office funds. • All funds should be accounted for in the PVA’s Budget • The PVA is required to amend the original budget when expenditures in an account series exceed the budgeted amount.

  25. Agreed-Upon Procedures -PVA 8. Determine whether collateral is necessary for the PVA’s funds. If necessary determine if the PVA was sufficiently collateralized for the year and if a collateral agreement exists. • Records Needed: • Bank Statements • Written Collateral Agreement(If Necessary)

  26. 8. Collateralization – Pledges of Securities (Continued) • When are Pledges of Securities necessary? • FDIC coverage is limited to $250,000. If funds on deposit are over $250,000 the depository institution should pledge or provide sufficient collateral (Note $250,000 changes Dec. 31, 2009) • Deposit of the same type at same bank share the same $250,000 of FDIC insurance

  27. 8. Collateralization – Pledges of Securities (Continued) • According to KRS 66.480(1)(d) and KRS 41.240(4), the depository institution should pledge or provide sufficient collateral which, together with FDIC insurance, equals or exceeds the amount of public funds on deposit at all times.

  28. 8. Collateralization – Written Agreement (Continued) • Should the PVA have a written Collateral Security Agreement? • YES, if funds on deposit are ever over $250,000.

  29. 8. Collateralization – Written Agreement (Continued) • According to federal law, 12 U.S.C.A. § 1823(e), this agreement, in order to be recognized as valid by the FDIC, should be (a) in writing, (b) approved by the board of directors of the depository institution or its loan committee, which approval must be reflected in the minutes of the board or committee, and (c) an official record of the depository institution.

  30. Agreed-Upon Procedures -PVA 9. Determine whether timesheets are completed, maintained, approved, and support hours worked. • Records Needed – • Daily time and attendance reports (DTAR) • Detail of Approval Process

  31. Agreed-Upon Procedures -PVA • 10. Determine whether cash balances were property transferred from former PVA to new PVA. • Records Needed – • Revenue Closeout Package • Bank Statements

  32. Agreed-Upon Procedures -PVA • 11. For newly hired employees, during July 1, 20__ through June 30, 20__, of the PVA office determine if the Ethics Certification Form has been completed and is on file. • Records Needed: • List on All New Employees • Ethics Form -09CodeofEthicsCertification42007.pdf

  33. Agreed-Upon Procedures -PVA • 12. Determine if the PVA’s office was closed any day other than the state’s approved holidays. If so, determine if the proper procedures and forms were completed. • Records Needed: • List of Days Closed • PVA Closing Form -2007CLOSINGSOFTHEPVAOFFICEForm326072.doc

  34. List Of PVA Accounting Records Needed for Audit • Bank Statements • Bank Reconciliations • Paid Invoices or Bills • Cancelled Checks(Front and Back) • Agreements and Contracts • Inventory List • New Employees List • Office Closing Dates • Deposit Tickets • Disbursement Ledger • Receipts Ledger • Copy of Fiscal Court Statutory Contribution Budget Account • Ethics Forms • PVA Office Closing Form • Collateral Security Agreement

  35. List Of PVA Accounting Records Needed for Audit (Continued) • Revenue Cabinet Request for Deputy Salary Allocation • Final Approved Budget • Time Sheets • Note: Additional items may be need, however the above items are the items we would like for the PVA to have ready upon out arrival.

  36. APA Contact Information Auditor of Public Accounts 209 St. Clair Street Frankfort, KY 40601 502-564-5841 • Beth Francis – Central Kentucky • Glen Thompson– Northeast Kentucky • Bobby Bowling - Southeast Kentucky • Charlene Daniels – Western Kentucky

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