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Barbara Loescher & Trisha Edwards Fiscal Integrity & Audit Section.

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Presentation on theme: "Barbara Loescher & Trisha Edwards Fiscal Integrity & Audit Section."— Presentation transcript:

1 Barbara Loescher & Trisha Edwards Fiscal Integrity & Audit Section

2 Topics for Today Overview of FIAS Supercircular New administrative requirements New cost guidelines New audit requirements What this means for counties Other hot topics

3 Fiscal Integrity & Audit Section Purpose is to monitor compliance with rules, regulations, licensing requirements and contracts to ensure that DCF funding is used appropriately Created in 2012 Consists of section chief and 5 auditors Basic responsibilities Desk reviews On-site fiscal reviews Internal audits

4 Overview - Super-Circular Combines 8 Circulars Published December 26, 2013 Effective Dates December 26, 2014 Single Audits – December 31, 2015 Link: See references page Additional guidance later this year

5 Impact & Objectives Reduce administrative burden Reduce fraud, waste and abuse Improve program integrity Strengthen accountability Shift from legacy awards to merit awards More oversight required for pass-through agencies

6 Administrative Requirements Reforms Performance goals & reporting, cost effectiveness and collaboration Technology changes Computers now supplies Flexibility in document retention Standardized requirements and definitions

7 Administrative Requirements Reforms Stronger oversight Conflict of interest policies Internal controls How audit results are treated Sub-recipient monitoring

8 Cost Principles Reforms All entities – same guidance Except for-profit agencies Indirect/direct costs Written cost allocation plan No universal rule except consistency Time and effort reporting Emphasis on internal controls rather than PARs

9 Cost Principles Reforms Changes to specific items of cost Advertising “Employee morale” costs eliminated Entertainment Conference spending Fines, penalties, damages and other settlements Collection of unallowable costs Home offices And others

10 A-133 Audit Reforms Single audit threshold increased $500,000 to $750,000 Type A programs increased $300,000 to $750,000 Risk criteria has changed Questioned costs threshold increased $10,000 to $25,000

11 A-133 Audit Reforms Repeat findings Compliance areas Still not sure Will be published 4/15/2015 Online publication of reports Federal Audit Clearinghouse

12 How Does This Affect Counties? Changes to your contracts with DCF Discuss with Executive committee Changes to county contracts with providers New language New references New allowable cost requirements New audit requirements for 2015 audits

13 More Ways It Affects Counties May be less auditing for A- 133 audits Training by DCF for county financial managers through rest of 2014 New State Single Audit Guidelines for 2015 audits

14 DCF Oversight of Providers FIAS Fiscal Reviews: Compliance with laws and licensing requirements Financial stability Allowability of costs Fiduciary responsibility Contract compliance Fraud and abuse Overpayment recovery Includes all agencies receiving DCF funding

15 Fiscal Reviews Results Insight from the trenches Luxury vehicles Ghost vehicle Lavish trips Fraudulent invoices Related party transactions Personal items “Me first” mentality Home office Holiday parties Box Bucks tickets Gas allowances ATM withdrawals Undocumented items Donations Overdraft charges Unreasonable Unnecessary

16 County Fiscal Reviews Expanding into county fiscal reviews Scheduling first wave in coming months Review centered on: Cost allocation Allowable costs Sub-recipient monitoring

17 Allowable Cost Policy Manual Update Major re-write Currently being reviewed internally To be discussed with Executive Committee Current (tentative) ETA – before year end

18 In Closing Read the Super-Circular Continue spending public funds prudently Update your contracts The ACPM is coming And we’ll see you soon!

19 For Further Information Barbara Loescher, CIA Chief, Fiscal Integrity & Audit Section Department of Children & Families (608)264-6992 Trisha Edwards, CPA Auditor – Senior Department of Children & Families (608) 267-2981

20 Questions?

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