iu audit process & tips
DESCRIPTION
IU Audit Process & Tips. Who Audits IU?. Federal Agencies Other Agencies (FSSA, Commercial, Foundations, Other Universities, etc.) State Board of Accounts IU Internal Audit. AUDIT STARTS. Desk Audit for Financial. When does an Audit Start? Proposal Stage Award Stage Closeout. - PowerPoint PPT PresentationTRANSCRIPT
IU Audit Process&
Tips
Who Audits IU?
Federal Agencies
Other Agencies (FSSA, Commercial, Foundations, Other Universities, etc.)
State Board of Accounts
IU Internal Audit
Desk Audit for FinancialAUDIT STARTS
When does an Audit Start?
Proposal Stage
Award Stage
Closeout
AUDIT NOTICE
AUDIT TEAM
INTERNAL MEETING
ENTRANCE MEETING
FIELDWORK
DRAFT REPORT
FINAL REPORT
AUDIT PROCESS
Receive Audit Notice
All notices go to the University Liaison (UL) Departments -Do not
respond to the noticeUL will respond to the
Audit agency Establish a point person ORA will facilitate the
audit
Clarify Audit Scope
Verify Time period of
audit Scope of the audit Schedule fieldwork
Review the Award Understand the
purpose of the award
Create an Audit Team
IU Roles of Audit Team• Official University Contact• Leads the auditUniversity Liaison
• Responsible for Project/Award• Appropriateness of expenditure
Principal Investigator
• Financially Responsible • Departmental contact
Department Business Manager
• Determines Allowability• University Grant Management
University Grant Consultant
• Completes Desk Audit• Provides University retained documents
University Financial Analyst
• Day to day grant management• Provides department retained documents
Department Administrator
Desk Audit Award Set up
Project Period Budget
Categories Revised Budget
Indirect Cost Rate
Desk Audit Financial Info
Report setup Invoice charges
Documentation Revised Budget
Online submissions
Subcontracts Allowable items
Desk Audit Close Out
Final Report completed
Inc=bdgt=exp No Encumb No Cash No Account Rec Close Account
Internal Meeting Meet with members of
the Audit team Review Roles Clarify Priorities Review Desk audit
results Resolve potential
problems Answer questions
Desk Audit for FinancialAuditor Relationships
Establish an open line of Communication Non-communication = Audit
Findings Build Rapport Don’t Badger Don’t Neglect Be Professional - courteous
Communicate, Communicate, Communicate . . . Correctly
Ask questions to verify the question asked Transparency Answer questions completely Don’t under answer the question Don’t over answer the question
Entrance Meeting w/auditors
Introductions & Roles Background of Award Audit Timeline
Fieldwork Update meetings
Audit Process Issue Notification
Auditor’s Fieldwork
Provide adequate workspace Preferably close to
University Liaison Direct all questions to
University Liaison Team members clear
calendars during fieldwork. Answer questions in a
timely manner
DRAFT AUDIT REPORT
NO Unresolved issues
NO additional information that could have been provided
Know what will be in the draft report
FINAL REPORTReport should be
addressed to UL or to the agency
No new items in final report
Your responses should be included in final report
AUDIT TIPS
Audit Do’s & Don’tsDocument RegisterUnallowable
expenditure samplePrevention is the best
cureRecord Retention
Audit To Do’s Audit is the highest priority Secure the highest level of
University support Keep everyone in the know Be over-prepared Provide the answers within
24 hours Investigate any
department issue(s) before the audit
Understand agency & department’s relationship
More To Do’s Be Collaborative Seek clarity of
question(s) Be specific with
responses Cite sources eg.
Agency guidelines, Circulars
Establish regular update meetings with Auditors
Review all samples before giving to Auditors
More To Do’s
Create a document that includes all relevant weblinks:
A133 Audit IU policies F & A agreements Fringe Benefit rates Etc
Do Not’s for an Audit
Don’t Procrastinate Don’t Be argumentative Don’t Be the Lone Ranger Don’t Embellish Don’t Offer unrelated
examples Don’t Over explain your
response
Document Register
Create a listing of all documents given to auditors
Unique identifier Date givenBrief description of
sampleAuditors must sign
for the documents
Prevention is the Best Cure
Perform detailed review (Desk Audit)
If something appears suspect: Document the details of unlike
circumstance Verifiable evidence of why it is allowable
Verify Effort during the life of the project Not during Certification process
Unallowable Expenditure in Sample
Self-disclose that it is not allowable
Explain why it is on the grant
Provide explanation on how this will be caught in the future
Ask auditor how they want to handle the cost
Potential Unallowable costs
Office Supplies Hospitality expenses Cell phone charges Transfer of funds Memberships Postage Fellowships Administrative wages Non-certified effort Promotions
Common Compliance Issues
Fly America Act Excluded Party List
System (EPLS) Audits of Subs
> $500,000 On time Financial
Reporting On time Progress
Reports
Record RetentionDocumentation
Maintain Effort Certification records
Justifications for purchases
Financial reports
Copy of or evidence of completion of final
technical or progress report (final payment
may depend on this!)
Keep project notes with documentation
Record RetentionKeep three to seven years after the final
report is filed, depending on the agency
Be aware of multi-year awards
Keep documentation centrally located No documentation = disallowance
Only you can prevent Audit findings. .
Contact Information
Jim Engel
Director of Grants Administration, Finance and Operations
Office of Research Administration
Telephone (812) 855-0165Fax (812) 855-9943E-mail [email protected]