A-133 AUDIT READINESS

1. (404) 874-0555 WPG-INC.COM A-133 AUDIT READINESS WELCOME The Wesley Peachtree Group CERTIFIED PUBLIC ACCOUNTANTS

2. A-133 AUDIT READINESS PRESENTED BY... Don K. Murphy, CPA Keith X. Terrell, CPA The Wesley Peachtree Group, CPAs

3. Introduction The Wesley Peachtree Group, CPAs Largest minority-owned firm in southeast Specializes in higher education Particular focus on HBCUs Auditors of Title III Programs

4. Introduction Topic—Improving A-133 Audit Preparedness Takeaways—A Better Understanding of A-133 Requirements and the Audit Process

5. Agenda A-133 Compliance Requirements Selected Items Requested During the Audit Common Audit Compliance Deficiencies

6. Understanding OMB Circular A-133 Compliance Requirements A - Activities Allowed or Unallowed B - Allowable Costs/Cost Principles C - Cash Management D - Davis-Bacon Act E - Eligibility F - Equipment and Real Property Management G - Matching, Level of Effort, Earmarking

7. Understanding OMB Circular A-133 Compliance Requirements H - Period of Availability of Federal Funds I - Procurement and Suspension and Debarment J - Program Income K - Real Property Acquisition Relocation Assistance L - Reporting M - Sub-recipient Monitoring N - Special Tests and Provisions

8. A - Activities Allowed or Unallowed Unique to each Federal program Grant specific

9. B - Allowable Costs/Cost Principles • Three cost principles circulars • OMB Circular A‑87—“Cost Principles for State, Local, and Indian Tribal Governments” • OMB Circular A-21—“Cost Principles for Educational Institutions” • OMB Circular A-122—“Cost Principles for Non-Profit Organizations”

10. C - Cash Management Reimbursement basis Advance basis Rule of thumb

11. D - Davis-Bacon Act Construction and renovation contracts Dollar threshold

12. F - Equipment and Real Property Management Tag Track Threshold

13. H - Period of Availability of Federal Funds Funding period Extended period (no cost extension)

14. I - Procurement and Suspension and Debarment • Procurement • Procurement procedures • Suspension and Debarment • Covered transaction • Threshold • Government website link http://epls.arnet.gov

15. L - Reporting Financial Reporting Performance Reporting Special Reporting

16. OMB Circular A-133 Compliance Requirements Summary www.whitehouse.gov/omb/circulars_default Questions

17. Selected Items Requested During the Audit & How They Are Utilized Overview

18. Selected Items Requested During the Audit & How They Are Utilized Schedule of Expenditures of Federal Awards

19. Selected Items Requested During the Audit & How They Are Utilized Grant award notification with budgets and narratives (Compliance Requirements: All)

20. Selected Items Requested During the Audit & How They Are Utilized Budget versus actual comparison pulled directly from the accounting system. (Compliance Requirement: A, B)

21. Selected Items Requested During the Audit & How They Are Utilized Documentation supporting allocation of common costs. (Compliance Requirement: A, B)

22. Selected Items Requested During the Audit & How They Are Utilized Schedule of salaries and fringes charged to Title III. (Compliance Requirement: A, B)

23. Selected Items Requested During the Audit & How They Are Utilized Sample selection of disbursements determined by auditor (Compliance Requirements: A, B, F, H, I)

24. Selected Items Requested During the Audit & How They Are Utilized Time and effort reports (Compliance Requirements: A, B, H)

25. Selected Items Requested During the Audit & How They Are Utilized General ledger support for all cash drawdowns made during the year. (Compliance Requirements: C)

26. Selected Items Requested During the Audit & How They Are Utilized Evidence of periodic monitoring of compliance with the Davis-Bacon Act. The dollar threshold for project qualifying under the Davis-Bacon Act is $2,000. (Compliance Requirements: D)

27. Selected Items Requested During the Audit & How They Are Utilized All program reports submitted for performance, financial and special purposes. (Compliance Requirements: L)

28. Selected Items Requested During the Audit & How They Are Utilized Summary Questions

29. Common Audit Compliance Deficiencies Overview

30. Common Audit Compliance Deficiencies Title III Director and Business Office personnel do not consistently and properly approve expenditures.

31. Common Audit Compliance Deficiencies Time effort reporting is not maintained, properly approved or accurately allocated to salary expense.

32. Common Audit Compliance Deficiencies Adequate documentation such as invoices, purchase orders and/or requisitions are not available to support expenditures.

33. Common Audit Compliance Deficiencies Drawdowns are received in excess of three days of needs.

34. Common Audit Compliance Deficiencies The $2,000 threshold under the Davis-Bacon is often overlooked.

35. Common Audit Compliance Deficiencies Competitive bidding is not properly solicited and/or documented.

36. Common Audit Compliance Deficiencies Due diligence is not performed and/or documented to verify vendor qualifications were compared to government databases for suspensions and debarments (http://epls.arnet.gov).

37. Common Audit Compliance Deficiencies Annual performance and financial reports are not filed timely.

38. Common Audit Compliance Deficiencies Summary Questions

39. Conclusion Topic—Improving A-133 Audit Preparedness • A-133 Compliance Requirements • Selected Items Requested During the Audit • Common Audit Compliance Deficiencies Takeaways—A Better Understanding of A-133 Requirements and the Audit Process Contact us with any additional questions

40. Thank You! Feedback • Evaluation Questionnaire • Tell us how we met your expectations Follow-up • The Wesley Peachtree Group, CPAs Office: (404) 874-0555 • Don K. Murphy, CPA don@wpg-inc.com • Keith X. Terrell, CPA keith@wpg-inc.com • Also available in handouts.

41. THE WESLEY PEACHTREE GROUP, CPAs (404) 874-0555 WPG-INC.COM THANK YOU Donald K. Murphy Keith X. Terrell don@wpg-inc.com keith@wpg-inc.com