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FY19 CEAR Reviewer Training

Dec. 5, 2019 | 9–11 a.m. ET | 2 CPEs | FOS: ACCG

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Speakers

• Diane Dudley, CGFM, CPA; Chair, CEAR Board• Domenic Savini, MSA,CPA,CMA,CGMA, CEAR Board• Hal Steinberg, CGFM, CPA, Technical Consultant• Reviewers’ Panel – Insights from Veteran Reviewers• Kia Lor, PMP, CMP, Meetings and CEAR Program Manager

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CEAR Reviewer Training Schedule• 9 a.m. – Welcome – Domenic Savini

• 9:10 a.m. – CEAR Program – Diane Dudley

• 9:45 a.m. – Best Practices – Hal Steinberg

• 10 a.m. – Insights from Veteran Reviewers

• 10:50 a.m. - Timeline, CEAR Packet, CPE, etc. – Kia Lor

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CEAR Program• Overview of the CEAR Program• How to Perform the CEAR Review• Highlights of Changes to CEAR Guidelines

Speaker: Diane Dudley, CGFM, CPA; Chair, CEAR Board

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Overview of the CEAR Program

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How to Perform the CEAR ReviewWhat To Do:

• Each Reviewer has up to five weeks to review agency report

• Allow at least an average of between 12-24 hours to review

• Take your time, spread out the effort for a thoughtful review

• Type your comments in provided CEAR Guidelines Word doc

• Email the completed Word doc as an attachment to [email protected]

What NOT To Do:

• Procrastinate, wait until the last week and rush the review

• Handwrite your notes in CEAR Guidelines, then scan it as PDF to [email protected]

• Mark each item in the Guidelines and return it to AGA

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Examples of Excellent Reviewer CommentsMAKING THE REPORT MORE USEFUL TO THE USERS

1. Table 1: Internal Control over Financial Reporting Corrective Actions presents the target correction dates for when X’ two material weaknesses will be corrected (page 33). These dates have slipped from the dates projected in the previous year’s Agency Financial Report. Presenting the reasons for the later-projected dates would enable readers to better understand X’ progress on the corrective actions, as well as X’ commitment to correcting the weaknesses.

Also, for both material weaknesses and the FFMIA non-compliance (page 34), the corrective actions presented could apply to any material weakness or non-compliance (e. g., The X CFO, CIO and Components will support the Components in the design and implementation of internal controls in accordance with X 4300A, Sensitive Systems Handbook….; X CFO and Components will continue to design, document, and implement compensating controls to reduce the severity of system security internal controls and functionality limitations.). Providing a hyperlink to the detailed corrective action plans would enable readers to understand X’s approach and commitment to correcting the weaknesses and non-compliance. (A similar comment was made last year.

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Examples of Excellent Reviewer Comments (cont.)FINANCIAL SECTION

MAKING THE REPORT MORE USEFUL TO THE USERS

1. Note 1I Summary of Significant Accounting Policies states “These components are classified as ‘held for repair’ and valued using the direct method” (page 90). Explaining what the direct method is would increase reader understanding of X’s financial activities.

The note also states, “repairable components, reported as work in progress, are valued at their book value.” Values reported on financial statements are, by definition, the amounts recorded in the books, i. e., book value. This matter should be addressed.

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Examples of What Not-To-Do: Reviewer Comments

• Unnecessary comments

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• Via Email only (without completing the summary):

Examples of What Not-To-Do: Reviewer Comments (Cont.)

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• Handwritten (and without the reasons for the recommendations)

Examples of What Not-To-Do: Reviewer Comments (Cont.)

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Best Practices• Noteworthy FeaturesExamples of excellent sections in the AFR/PARCreative applications of the Guidelines that might be of interest for preparers of

other agencies’ reports

• Special AwardExamples of innovation and improvement in the areas important to performance and

accountability

• Value-Added Distinction Award

Speaker:Hal Steinberg, CGFM, CPA, Technical Consultant

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Noteworthy Features Examples• Commendable PracticesMessage from the

ChairwomanFinancial Highlights

Improper Payments Reporting DetailInspector General’s Summary

of Management and Performance Challenges

• Creative Applications Inclusion of hyperlinks and data

visualization to provide extensive information in easily digestible formats about the Bureaus’ missions and selected activities

Ability to click on a Table of Contents section name in the report’s electronic version and jump to that section in the report

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Special Awards

• Above and beyond the Certificate

• Encourage innovation and improvement

• Single award in limited number of categories in which a report excelled

• If the report doesn’t excel for any category, then no Special Award

• Agency cannot win more than one Special Award

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Special Award Process

• Reviewer identification with bulleted support• Team discussion• Recommendation to the CEAR Board• CEAR Board discussion and decision

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Value-Added Distinction Award• Report demonstrates how financial management added value to

the agency

• Examples are: • Applied data analytics to financial information• Used risk management to mitigate enterprise risks• Integrated financial and performance data to inform decisions

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Panel of Veteran Reviewers

• Mark Reger, CPA, Former Dep. Controller of the U.S., OMB - Two-year veteran Reviewer

• Harrison Feind, CGFM, CPA, CISA, Senior Audit Associate, Deloitte -First-year Reviewer

• Greg Wilber, CGFM, Senior Manager, Deloitte - Five-year veteran Reviewer

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Mark Reger, CPAFormer Dep. Controller of the U.S., OMB - Two-year veteran Reviewer

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AGA FY19 CEAR Presentation

2019

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WHY DO CEAR ?

• How do you reward your employees for the annual efforts to generate financial statements?

• How many times during a year is your accounting staff invited to attend events to recognize their accounting skills and efforts among their peers?

• What is the number 1 way to motivate employees towards better performance?

• What training do you offer your accounting employees on new ways to address audit and/or reporting issues?

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CEAR PROGRAM!

• Agency selected designation of the team – individuals who demonstrated outstanding leadership and creativity that directly benefited your agency’s financial report!

• Attendance at a formal event at a swank venue in DC with senior federal accounting officials recognizing the efforts of a team of your best employees focusing on their demonstrated knowledge, skills and abilities.

• The number 1 way to motivate employees towards better performance public recognition of their performance! In front of their peers and senior leaders call out your employees for their efforts and accomplishments.

• Exposure to other outstanding employees in the federal accounting field who have demonstrated their abilities to accomplish similar tasks using new creative approaches

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COSTS?• How do you pay for your annual financial statement

audit? • How much do you pay for other training programs?• What do you tell your staff to do when they come to you

with a problem they’ve never addressed before? • At the current rate the CEAR program is the cheapest way

to obtain qualitative review of your statement efforts• What does obtaining a CEAR designation vs your Opinion

audit costs?• How many contacts doing similar jobs to your staff do they

meet at ONE CEAR Dinner?

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CEAR REVIEW

• For the CFO:

• You have gotten your “clean” or unmodified opinion.

• Your boss sees that as ‘table stakes’.• Management wants to know ‘what you’ve done

lately’?• Your trying to raise moral at a difficult time?• You would like to have some money to do a review

of your statement practices to keep your auditors a bay.

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Be a Reviewer!

• Ever wonder how other people address certain audit challenges?

• Ever faced with the challenging write up negotiating exact wording with your auditor?

• Do you just help recompile your annual financial report each year in the same format?

• Being an AGA CEAR reviewer you see how other agencies report on problems, you have an opportunity to learn new ways to negotiate language with auditors, you get to spend time seeing other ways to display information in a meaningful way.

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Greg Wilber, Advisory Senior Manager

Harrison Feind, Advisory Senior Consultant

Deloitte & Touche LLP

This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting,business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute forsuch professional advice or services, nor should it be used as a basis for any decision or action that may affect your business.Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.

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CEAR Review Leading PracticesNew Reviewer Tips:• Today: Find someone

who has conducted a review and ask for tips

• Next:• Familiarize yourself

with the CEAR guidelines

• Study prior CEAR recommendations to understand comment structure (specific and actionable)

Adding Value Tips:• Focus your time on the

content. Independent auditors have validated compliance and accuracy!

• Identify content themes and tie the performance and financial results together.

• Speak up! Your feedback is important, and if your initial comment is not included in the draft report, clarify what you saw in the final group discussion.

Review prior year CEAR feedback and the Agency’s response (if applicable) and verify corrective actions were ttaken

Independently research the Agency (website, social media, news) to understand public interest and perception

Leverage your experience, to add value to the review

BE PRESENT. Attend the group feedback discussion

and voice your feedback. Enjoy the final celebration!

Read the Agency Financial Report/Performance Accountability Report FIRST!!!

SUBMIT ON

TIME!

Block off in ½

days

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Timeline• Early Dec. – All applicants will be notified via email of status

• Early Jan. – Teams will start to receive reports at home address – Up to 4 weeks to review upon receipt

• Early Feb. – AGA will begin scheduling in-person meeting with teams and lead reviewers at the AGA National Office

• Mar. – Teams meet as scheduled at AGA Office (up to 2 hours of CPEs)

• Early Apr. – Special Award selection by CEAR Board complete

• Early May – CEAR Award dinner ceremony invitations go out –

• May 27 – CEAR Award Ceremony – Black tie preferred, Marriott Marquis Washington, DC All Reviewers encouraged to attend – You’ve worked hard!

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Reviewer Communications• POC – Kia Lor Email: [email protected]; [email protected]

• Lead Reviewers

o Hal Steinberg

o John Hummel

o Ken Winter

• Packet Tracking via UPS

• A follow-up Email containing:

1) FY19 CEAR Guidelines in Word document format

2) UPS tracking number

• Upon receipt of packet, email Kia to acknowledge receipt

Please note: Reviewer comments due date will be calculated based on date of receipt of packet

• Reminders emails will be sent if comments are not received by due date

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Reviewer’s Packet Includes:• Agency’s PAR/AFR – If agency specifies a SFPI will be available, team

will be notified. Web link to access will be sent after Feb. 28. Please begin your review of the PAR/AFR while waiting to receive the SPFIlink.

• FY19 CEAR Guidelines completed by agency – (optional) • Recommendations from prior year and accompanying responses

from agency – strongly encouraged agency to send • Not all agencies will provide – AGA will provide copy of prior year

recommendations from Reviewers

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What Questions Do You Have???