1 / 20

Best Practices in Preparing For An Audit or Monitoring Visit

Best Practices in Preparing For An Audit or Monitoring Visit. Top 3 Auditor’s Advice № 1 – Documentation № 2 – Disclosure № 3 – Communication. Objectives. Best Practices & Suggestions for Common Audit Findings Most Requested Documents General Principles and Guidelines for Documentation

luther
Download Presentation

Best Practices in Preparing For An Audit or Monitoring Visit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Best Practices in Preparing For An Audit or Monitoring Visit Top 3 Auditor’s Advice № 1 – Documentation № 2 – Disclosure № 3 – Communication

  2. Objectives • Best Practices & Suggestions for Common Audit Findings • Most Requested Documents • General Principles and Guidelines for Documentation • Examples of Best Practices → Documenting Timelines → Expenditure Report Preparation → Inventory Reporting

  3. Audit Tip #1 – Know Your Compliance Requirements • A-133 Compliance Requirement Table

  4. Best Practice - Grant Narrative with A133 Internal Controls Compliance A – Activities Allowed or Un-Allowed, and Allowable Cost/Cost Principles • Controls: • Authorization of expenditures by knowledgeable individuals • Budget analysis prepared quarterly by grant accountants • Process: • The City of Tampa management establishes budgets for Federal and non-Federal programs. Federal programs are established in accordance with government agreements. The Budget Analyst, Financial Accountant and management compare actual amounts to departmental budgets on a monthly basis for initiatives funded by the grant. The affiliates that receive a direct grant for Capacity Build do not maintain a budget to actual report because the budget amount is fixed as it relates to salary of employees. Discrepancies are researched to determine if costs are appropriately charged. Each government program has a budget versus actual schedule, which compares actual expenses for each line items with the agreement’s budget for that line item.

  5. Current Top 5 Common A-133 Findings • Allowable Costs/Cost Principles (19%) • * Staff charged food to a grant because they were unaware that it was unallowable • * Excessive Administrative Costs • Reporting (18%) • * Grant progress reports not filed on time • * SEFA is incomplete or not prepared at all • Other (13%) • * Insufficient monitoring of sub-recipients • * Program serving ineligible participants • * Fraudulent payments to vendors • Procurement, Suspension/Debarment (9%) • * Lack of competitive bidding documentation • Equipment/Real Property Management (8%) • * No evidence of inventory review or reconciliation to financial records. • * = Example • Top 10 Audit Findings 2005 • 1. Untimely Report Submissions • Lack of Documentation • Inadequate Recipient Monitoring • Inadequate Reports • Inaccurate Reports • Co-Mingling of Funds • Excess Cash On Hand • Unallowable Cost • Inappropriate Changes • Conflict of Interest

  6. Best Practices to Reduce A-133 Findings

  7. Best Practice – Grant Intake Form Grant Title:_____________________ Granting Agency:______________________ Purpose:_______________ Contract #:_____________________ City Department:______________________ Contact:_______________ CFDA #: _____________________ Pass Through Entity:_______________& Identifying Number_________ Federal Funding: $_______________ Period of Performance: Start_________ End____________ State Funding: $_______________ Local Match: $_______________ Grant Type: Cost Reimbursement City’s Match: $_______________ Fixed Fee Total Funding: $_______________ Unit of Service Advance Requires Trust Fund/Interest Bearing Account? Yes No Financial Reporting Schedule: __________________ Progress Reporting Schedule: _____________________ Financial Contact:_____________________________ City of Tampa – Grant Information Sheet

  8. General Guidelines for Documentation • All documents should be self explanatory Include summary or outline for further clarification Budget Report May 21 – 23, 2012 Approved By: Deirdre Joseph_May 23, 2012_ Sign in ‘Sharpie’ or dark ink UASI2012BRv6.doc Page 1 of 15 Number pages in X of Y format Always put the last version in the footer

  9. General Guidelines for Documentation FAMIS – Financial Accounting System (general ledger) General Ledger Account # • Explain Acronyms City of Tampa ** FAMIS PAYROLL INTERFACE ** EXPENSE DISTRIBUTION REPORT Run Date: 5/23/12 FAMR2701 Employee Name Employee POCN Period Earn Hours Rate Earning Benefits ID Number Ending Type Charged >>>SUBOBJECT: 01200 Joseph, Deirdre 26938 48990 06/13/11 HOL 16.00 $10.00 $160.00 $ 12.50 Joseph, Deirdre 26938 48990 06/13/11 REG 42.00 $10.00 $420.00 $ 95.50 >>>SUBOBJECT: 01212 Joseph, Deirdre 26938 48990 06/13/11 ANN 22.00 $10.00 $220.00 $ 14.00 >>>SUBOBJECT: 04000 Joseph, Deirdre 26938 48990 06/13/11 TPD 0.00 $55.00 HOL = Holiday Pay (Note 1) Salary Calculation: Holiday Pay $ 160.00 Holiday Benefits $ 12.50 Annual Leave $ 220.00 Annual Leave Benefits $ 14.00 Total Salary $ 406.50 Note 1 = Travel cost not considered part of salary. ANN = Annual Leave

  10. General Guidelines for Documentation • References should be consistent throughout • Memo • To: Chanda Brown • From: Deirdre Joseph • Date: May 23, 2012 • Re: UASI 2011 (contract XXXX) • __________________________ • Motorola Communications, Inc. • * Canceled Check (page 1) • * Invoice (page 2) • * Asset Paperwork (page 3) • * Purchasing Paperwork (pages 4 – 5) • * Grant Budget (page 6) • Fisher Scientific • * Canceled Check (page 6) Division of Emergency Management Detail of Claims Form 4A Category: Equipment Grantee: City of Tampa Agreement: XX-XXX Cost Incurred During the Period of: May 21 – May 23, 2012 Vendor Date Paid Check Amount Reference Motorola 5/5/12 345998 $88,000 Fisher Scientific 5/16/12 298488 $50,000 A B Total Expenditures $138,000 • Form must be compiled from Form B by Category • Form must accompany Reimbursement Request

  11. General Guidelines for Documentation Common Audit Request • Grant files should be easily accessible • Grant contract should always be referenced • Use audit checklist for folder contents Contract XX-XX Agreement Contract XX-XX Budget Adjustments Contract XX-XX M&A Calculation Contract XX-XX Sub Agreements

  12. General Guidelines for Documentation • Common Audit Request - Earmarking CFDA: 97.067 Contract: XX-XX Grant: UASI 2012 Award: $7,580,599 M&A Calculation: Award: $7,580,599 M&A%: .03% Allowable $227,418 Expended as of 5/30/12 $5,000(Note 1) Note 1 – GL attached Ernst & Young CFDA: 97.067 Audit Program Matching & Earmarking and Level of Effort: G1: Provide the earmarking calculation to show compliance with requirement. UASI 2012 Agreement $7,580,599 CFDA: 97.067 Contract: XX-XXX …the Management & Administrative dollar amount should not exceed 3% of total grant allocation…

  13. General Guidelines for Documentation • Common Request – Project Selection Methodology Projects A, B, C vetted for grant inclusion Projects A & B chosen for grant inclusion Project A Project A Project B • Project C • Not Chosen • Withdrawn • Other Funding • Not Viable • Not Enough Votes Project C Project B

  14. General Guidelines for Documentation • Common Request – Project Selection Methodology Step 1 – Notify recipients of grant guidance via email or letter and gather statistics (10 committees notified). Step 2 – Give consistent guidance on documenting projects on standard form. • Project Submission Form • Project Title • Contact Name/Phone Number • Project Phase (ongoing, new) • Category (Equipment, Training, etc) • AEL • Request Amount • Description, Completion Time • Applicable State Strategy • Applicable National Strategy Step 3 – Document how projects are selected Step 4 – Project Chosen – YES or NO If No document reason______________.

  15. General Guidelines for Documentation • Common Request – Project Selection • Project Submission Form • Suggestions for Additional Information • How does this project support the State approved strategic plan? • How does this project support National priorities? • What is the risk of not implementing this project? • Can this project be sustained if grant funding is no longer available? If so, what contingency plan is in place?

  16. Best Practices: Timeline (Narrative Format) • Page # Date Explanation . • 1 11/19/2009 Award Letter Received from State • 2 12/4/2009 Resolution prepared and submitted to Doc Genda • 12/17/2009 RESO 2009-1214 – Resolution approving Award Letter • 12/31/2009 Agreement Received from the State • 5 1/7/2010 Award Letter signed by Mayor • 6 1/12/2010 Award Letter mailed to the State for signature • 7 1/13/2010 Resolution prepared and submitted to Doc Genda • 8 2/18/2010 Resolution for Agreement approved by City Council • 9 2/23/2010 Agreement sent to the Mayor for signature • 10 3/2/2010 Mayor signed Agreement • 11 3/5/2010 Agreement sent to the State for signature • 12 4/14/2010 Executed (signed) Agreement received from the State • Ready and Authorized to Spend Funding!

  17. Best Practices: Timeline (Chart Format) Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010 April 2010 11/19/09 Award Letter Received 12/4/09 Award RESO Approved 12/31/09 Agreement Letter Received From State 1/12/10 Award Letter Mailed to State 2/18/10 Agreement RESO Approved by City Council 3/2/10 Agreement Signed by Mayor 4/14/10 Agreement (executed) Received from State

  18. Best Practices: Inventory City of Tampa - UASI Grant Inventory As of May 23, 2012 Inventory Instructions: Please manually inspect your assets and confirm that you have the equipment listed below by comparing the asset tags. If asset is located, place an “X” in the column labeled “Inventoried”. If there is a discrepancy, write “NO” and write an explanation in the “Discrepancy/Notes” column. Documentation of any discrepancies (e.g. Asset Disposal Paperwork, Police Report of Stolen Items) must accompany this report. Upon completion, sign and date the bottom of this schedule. ■ Asset# ■ Description ■ Amount ■ Location ■ Grant ■ Inventoried ■ Discrepancy/Notes 1. A1BC P25 Receiver $60,000 Pinellas UASI 10 X 2. A4HI Satellite $ 4,500 Pinellas UASI 10 X 3. A3FF Robot $50,000 Pinellas UASI 10 NO Item Stolen 4. A2ER Raft Tools $ 2,000 Pinellas UASI 10 X 5. A8KO X-Ray $17,000 Pinellas UASI 10 X Inventory Completed By:____________________Date___________

  19. Best Practices: Inventory Grant Asset Inventory Report – Sample Testing Date of Review:___________________ Agency Name: ___________________ Agency Contact: __________ Please fill out the following information: A. Has the agency disposed of any grant equipment?____ NO(go to B)YES, attach the Domestic Security Equipment Discharge Form. B. The Number of Assets Assigned to this Agency is ______________. C. The Number of Capital Assets (>$1,000) is ______________. D. The Number of Assets inventoried during this review is _________ . Instructions: 1. Attach Inventory Listing for Agency 2. Attach Agency’s last inventory that includes grant assets. 3. For each asset inventoried, review and document the following: • Does the asset contain a City of Tampa Yellow Grant Asset Tag? • Compare the City of Tampa Grant Asset Tag to the Inventory listing. If different, manually correct the Inventory Listing. • Inspect the equipment (visually or through interview) to determine if asset is still usable. • Ask the agency representative to give examples of how this equipment is being used?

  20. Best Practices - Expenditure Reporting + Minimum Standard Documentation Additional Suggested Documentation Budget (directly from grant) Allowable Equipment Cost Canceled Check Quantity Cost Total Cost Invoice IJ – Prepare & Respond Investment Justification (for each project) Asset Tag Grant Modification 1 Grant Adjustment (if applicable) Purchase Order EHP/DHS approval (if applicable)

More Related