the auditors are coming!the auditors are coming! ncura regions vi/vii dorothy yates jonnie jenkins...
TRANSCRIPT
The Auditors are coming! The Auditors are coming!The Auditors are coming! The Auditors are coming!
NCURA Regions VI/VII Dorothy Yates Jonnie Jenkins
Denver, Colorado Associate Vice President Internal Auditor
April 3-6, 2011 University of Wyoming University of Wyoming
NCURA Regions VI/VII Dorothy Yates Jonnie Jenkins
Denver, Colorado Associate Vice President Internal Auditor
April 3-6, 2011 University of Wyoming University of Wyoming
Topics for TodayTopics for Today
Types of Audits Internal Audits Program site visits Property system reviews Office of Inspector General Audits Office of Inspector General
Investigations A-133 Audit
Types of Audits Internal Audits Program site visits Property system reviews Office of Inspector General Audits Office of Inspector General
Investigations A-133 Audit
Internal AuditsInternal Audits
“Friendly Audits” Can be a resource for problem areas Can really be a help in changing
processes and procedures Can “blame the auditors”
They work for the institution, not the government
“Friendly Audits” Can be a resource for problem areas Can really be a help in changing
processes and procedures Can “blame the auditors”
They work for the institution, not the government
Program Site VisitsProgram Site Visits
Typically done on larger federally funded programs
Programmatic review Process and procedural review Financial audit
Typically done on larger federally funded programs
Programmatic review Process and procedural review Financial audit
NSF Desk ReviewsNSF Desk Reviews
Instituted in 2006 to enable NSF to gain insights into awardees’ core award administration policies, procedures, and practices
Assess general management environment, review selected accounting and financial management policies and procedures and obtain financial information submitted by awardees
Conducted 340 over 5 years
Instituted in 2006 to enable NSF to gain insights into awardees’ core award administration policies, procedures, and practices
Assess general management environment, review selected accounting and financial management policies and procedures and obtain financial information submitted by awardees
Conducted 340 over 5 years
Property System ReviewsProperty System Reviews
A property control system analysis (PCSA) is a review of an institution's property control system, performed to determine whether it is capable of controlling, protecting, preserving and maintaining government property in its custody.
Office of Naval Research (ONR) performs PCSAs at all institutions that are in custody of government-titled property under awards that have been delegated to ONR for administration.
A property control system analysis (PCSA) is a review of an institution's property control system, performed to determine whether it is capable of controlling, protecting, preserving and maintaining government property in its custody.
Office of Naval Research (ONR) performs PCSAs at all institutions that are in custody of government-titled property under awards that have been delegated to ONR for administration.
Inspector General AuditsInspector General Audits
Assess internal controls, financial management, information technology, and other systems that affect the operation of federally funded programs
Occur periodically during a close-out, or an inconsistency in practices is noticed, or because of a whistle-blower, etc.
Assess internal controls, financial management, information technology, and other systems that affect the operation of federally funded programs
Occur periodically during a close-out, or an inconsistency in practices is noticed, or because of a whistle-blower, etc.
Inspector General InvestigationsInspector General Investigations
Differ from IG audits as to intensity No prior notice Generally come with subpoena in
hand Have badges and guns; Immediately
contact your legal counsel Typically a result of a whistle-blower
Differ from IG audits as to intensity No prior notice Generally come with subpoena in
hand Have badges and guns; Immediately
contact your legal counsel Typically a result of a whistle-blower
OMB Circular A-133 AuditOMB Circular A-133 Audit
Your federal tax dollars at work Planned and expected Annual audit of federal expenditures
Allowability Allocability Consistency Cost-share Program income Etc, etc
Your federal tax dollars at work Planned and expected Annual audit of federal expenditures
Allowability Allocability Consistency Cost-share Program income Etc, etc
ChallengesChallenges
Changing audit environment Auditors are being audited Audit guidance is changing more
frequently Stimulus funding
Changing audit environment Auditors are being audited Audit guidance is changing more
frequently Stimulus funding
Preparing for an External AuditPreparing for an External Audit
Rule number 1: do not annoy the auditors Where will you put them?
Close enough for access, but outside of where the day-to-day business occurs
Reasonable space for their work Access to electronic systems Access to physical files If they are new to the institution, provide
parking maps, parking information, restaurants, etc.
Rule number 1: do not annoy the auditors Where will you put them?
Close enough for access, but outside of where the day-to-day business occurs
Reasonable space for their work Access to electronic systems Access to physical files If they are new to the institution, provide
parking maps, parking information, restaurants, etc.
Preparing for an AuditPreparing for an Audit
Appoint an audit liaison – a single point of contact for the auditors
Managing the audit - workplan Managing the auditors
Issues: Timing Requests Interruptions Response times
Appoint an audit liaison – a single point of contact for the auditors
Managing the audit - workplan Managing the auditors
Issues: Timing Requests Interruptions Response times
Preparing for an AuditPreparing for an Audit
Preparing yourself and your staff for communicating with auditors Read the audit guidance Be responsive Answer questions that are asked; be
guarded with external auditors but open with internal auditors
Provide materials requested Don’t offer information, don’t elaborate
Preparing yourself and your staff for communicating with auditors Read the audit guidance Be responsive Answer questions that are asked; be
guarded with external auditors but open with internal auditors
Provide materials requested Don’t offer information, don’t elaborate
What do the Auditors Want?What do the Auditors Want?
To be treated in a courteous and professional manner
A quiet place to work with computer access
Professional responses Audits are about control failures, not
individuals Cooperation
To be treated in a courteous and professional manner
A quiet place to work with computer access
Professional responses Audits are about control failures, not
individuals Cooperation
What do the Auditors Want?What do the Auditors Want?
Well prepared – have workpapers, etc. ready for review
Key employees available Prompt responses Clear, concise, factual responses Auditees to be up-to-date on
regulatory requirements Organized files
Well prepared – have workpapers, etc. ready for review
Key employees available Prompt responses Clear, concise, factual responses Auditees to be up-to-date on
regulatory requirements Organized files
What Annoys the Auditors?What Annoys the Auditors?
Passive-aggressive behavior Resistance to cooperate “We’ve always done it this way” Unorganized files People too busy to talk to them Putting up roadblocks to change Defensiveness
Passive-aggressive behavior Resistance to cooperate “We’ve always done it this way” Unorganized files People too busy to talk to them Putting up roadblocks to change Defensiveness
What Annoys the AuditorsWhat Annoys the Auditors
Deception Un-organized or unprepared clients Clients that don’t recognize the
audit as a priority Clients that don’t have a clue about
the regulations they are supposed to follow
Rudeness
Deception Un-organized or unprepared clients Clients that don’t recognize the
audit as a priority Clients that don’t have a clue about
the regulations they are supposed to follow
Rudeness
The EndThe End
Questions?Contact info:
Questions?Contact info: