What do the Auditors Want

1. What do the Auditors Want? By Trena Barnett, CPPO, CTPM

3. What comes to mind Risk Intimidation Insecurity Doubt How am I going to respond and still do my job?

4. Perspectives Opportunity Reward

5. To Understand Audits Types of Audit Random (selection “just luck”) Target (possibility of improper purchasing exists) Special External (State Auditor, TBPC, Comptroller) Internal

6. The Pieces of a Random Audit Select Records / Transactions Initial Request Letter Review & Verify Information Initial Findings Letter Meeting / Request Corrective Action Plan Final Report

7. Obtain access to Records/Transactions Eliminate (target audits, construction, etc.) Randomize Texas State Auditor Office, statistical toolbar old fashion sampling

9. Send an Initial Request Letter to each purchaser with request for any additional information

11. Checklist Items reviewed Weighted? Explanation / Source

16. Frequently Asked Questions In regards to Comptroller object codes, how do I know when to code a purchase as a commodity or as a service? Labor plus parts is coded as a service. When purchasing parts only (no type of service involved), the purchase is coded as a commodity. A service may include labor and parts (ex. transmission repair). Commodities may consist of parts, materials, supplies, etc. When it comes to coding purchases with Comptroller object codes, think of what is actually being purchased as opposed to how the item will be used. Example: A cardholder purchases a fan belt for a vehicle. The cardholder installs the fan belt (also known as performing the work "in house"). Although the fan belt's purpose is for the maintenance of the vehicle, the cardholder only purchased a fan belt and should code the purchase as a commodity. If the cardholder purchased a fan belt from a vendor and paid the vendor to have the fan belt installed in the patrol vehicle, the cardholder purchased labor and parts (fan belt) and should code the purchase as a service.

17. In regards to Comptroller object codes, when do I code a purchase a 1302860 (freight & delivery services or shipping & handling charges)? If you make a purchase that includes shipping/handling or freight/delivery, code the shipping/handling or freight/delivery charge to the same object code as the item purchased. Example: If you purchased boxes from ACME Box and the vendor charged a $10.00 freight fee, then you would code the boxes as 1303340, and the freight charge as 1303340. If you're not creating a separate line item for shipping/handling or freight/delivery, just list the charge in your description with the dollar amount of the charge. For example, the description would be: 100 boxes for Operation Honcho and a freight charge of $10.00. If you are actually purchasing shipping/handling or freight/delivery services from FedEx, UPS, Central Freight, etc. and they are the vendor you are paying directly, that's when you want to use 1302860. For example, if you are shipping a boxes to headquarters via UPS (and UPS is being paid directly), then you would code as 1302860 Freight & Delivery Services. Frequently Asked Questions

18. The receipt I received from the vendor is not readable. What should I do? Ask the vendor for a readable (legible) receipt. Explain to the vendor that your receipts are audited. Remember, if you can’t read the receipt, the auditor won’t be able to read it either. Frequently Asked Questions

19. Perspectives Opportunity To learn To teach Reward Job performance Recognition

20. The Answer to All Questions DOCUMENTATION !