Presentation on theme: "Presented by Dave Yuhas Donna Denker and Associates."— Presentation transcript:
Presented by Dave Yuhas Donna Denker and Associates
Project conducted under sponsorship of : President’s Council on Integrity and Efficiency Executive Council on Integrity and Efficiency Three State Auditors Not all that important. Just interesting to see how many organizations had to be created and involved to get this project completed. Report issued in June 2007
The Project was performed to: Determine single audit quality Provide baseline for monitoring ongoing quality Recommend needed changes to the process or the Single Audit Act
Study covered 208 audits out of a total 38,000 single audits performed in 2002/2003 -- 005%. Breakdown of 208 – The 2 buckets 96 were from 852 entities expending Federal Awards greater than $50 million. 112 were from 37,000 entities expending Federal Awards less than $50 million. Which bucket does your entity fall into?? 97% audits conducted were on entities receiving less than $50 million -- 37,000 of the 38,000.
115 of 208 acceptable – 48.6% 115 represented 92.9% of total Federal Awards Bucket #1 audits for the most part 30 had significant deficiencies – 16% 30 represented 2.3% of total Federal Awards 63 were unacceptable – 35.5% WOW!! 63 represented 4.8% of total Federal Awards
Total of 96 audits 61 (63.5%) were acceptable 12 (12.5%) had significant deficiencies 23 (24%) were unacceptable What is this telling us? Who performs these audits?
Total of 112 audits 54 (48.2%) were acceptable 18 (16.1%) had significant deficiencies 40 (35.7%) were unacceptable More than half unacceptable! What would your audit be classified as? What is more important quality/cost?
Not documenting the understanding of internal controls over compliance requirements -- 56.5% Not documenting the testing of internal controls of at least some compliance requirements – 61% Not documenting compliance testing of at least some compliance requirements – 59.6%
Revised and improved single audit standards, criteria and guidance. Improve standards/guidance Suite of 8 plus more! Established minimum requirements for training on performing single audits More CPE both as pre-requisite and ongoing. Review and enhance processes to address unacceptable audits Possible application of suspension and debarment process In the end More procedures = more time More time = increased audit costs
Choose your auditor carefully! RFP should include: Details Deadlines Time Staff experience Peer review References What is impact on entity if audit is determined to be unacceptable?