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The Auditors are coming!The Auditors are coming! NCURA Regions VI/VII Dorothy Yates Jonnie Jenkins Denver, Colorado Associate Vice President Internal Auditor.

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Presentation on theme: "The Auditors are coming!The Auditors are coming! NCURA Regions VI/VII Dorothy Yates Jonnie Jenkins Denver, Colorado Associate Vice President Internal Auditor."— Presentation transcript:

1 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

2 Topics 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

3 Internal 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

4 Program 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

5 NSF 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

6 Property 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.

7 Inspector 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.

8 Inspector 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

9 OMB 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

10 Challenges 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

11 Preparing 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.

12 Preparing 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

13 Preparing 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

14 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

15 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

16 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

17 What 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

18 The End Questions? Contact info: Questions? Contact info:


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