Legislative Division of Post Audit. Two parts to the SWSA o Statewide Financial Audit o Statewide A-133 Federal Compliance Audit LPA oversees the.

Legislative Division of Post Audit

Two parts to the SWSAo Statewide Financial Audito Statewide A-133 Federal

Compliance Audit

LPA oversees the audit, but contracts with an external CPA firm

Department of Administration Policies, Processes and Procedures

Generally accepted accounting principles

Financial accounting resourceso Codification of Governmental

Accounting and Financial Reporting Standards by GASB

o Audit and Accounting Guide: State and Local Governments by AICPA

o Governmental Accounting, Auditing, and Financial Reporting by GFOA

Grant award document Applicable CFR OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments

OMB Circular A-102 Grants and Cooperative Agreements with State and Local Governments (common rule)

OMB Circular A-133 Audits of States, Local Governments, and Not-for-Profit Organizations◦Compliance supplement

Read the instructions carefullyDon’t add or delete columns – loads up into a database

Call if you have questionsStart early

Report and correctly classify:◦Non-monetary expenditures◦Transfers to other state agencies◦Awards to subrecipients◦Clusters of programs◦CFDA numbers

Reconcile the SEFA survey to the general ledger and to the reports

Know who the key personnel in your agency are and have them available

Have documents ready Answer questions fully and timely If you don’t understand who or what the auditors want, ask

If you don’t think the auditors understand, persist in explaining to them

Err on the side of over-communicating.

Read your findings carefullyVerify the accuracy of your findingsShare the findings with key stakeholders (program personnel, agency head)

Do the above as soon as you get your findings. Don’t wait until the corrective action plan is due

If you disagree with the findings, think some of the information is inaccurate, or does not correctly characterize the situation, notify the auditors and Legislative Post Audit immediately

Thoughtfully craft your corrective action plan

The state has received a material weakness for the past two years for not being able to accurately report capital assets

The state had to re-issue the 2011 CAFR and related financial audit report because it did not include around $475 million in non-monetary revenues and expenditures

The state has received a material weakness for the past two years for not being able to compile an accurate SEFA – reissued 2011 federal audit report◦Missing non-cash items in 2011 ◦Missing and misreported information resulted in13 different versions of the 2012 SEFA

Re-works take up your timeAuditors charge for time spent re-working because of mis-reported information

Because of SEFA problems, auditors worked hundreds of extra billable hours

Agencies pay for additional charges

Martin Eckhardt (financial)[email protected] 785-296-2661

Gail Barnhart (financial and SEFA)[email protected] 785-296-3404

Roger Basinger (SEFA)[email protected]

Legislative Division of Post Audit800 SW Jackson St, Ste 1200785-296-3792

Julie Pennington, CPA, CIA, CFEFinancial-Compliance Audit [email protected]