Office of the Chief Financial Officer Agency Audit Services Agency Audit Plan Overview 1

Agency Audit Plan Structure  The Agency Audit Service Team (Audit Services) will audit all agencies annually, rather than on the previous three-year rotating basis  Each year, different sections will be addressed with agencies  Agency SMART Payments  Capital Assets  Accounts Receivable  Money Outside the State Treasury (MOST)  Not all sections will be reviewed each year, but each section will be addressed at least once in a three-year cycle  To be respectful of budget time, annual agency audits will not begin until after September 15 th 2

3 Agency Audit Plan Inherent Benefits More Frequent Contact with Annual Audits:  Strengthen lines of communication  Use Audit Services as an information resource  More expedient audits Timely Communication:  Central location for all agency audit communication:  Communication Commitment:  Audit Services is committed to responding to any agency audit communication within three business days  We request agencies follow a similar communication timeframe and respond to Audit Services communication within three business days

Agency Audit Plan Timeline 4 Every Agency, Every Year Every Year Agency SMART Payments - Bond Disclosure Outstanding Findings Year-A Conducted in FY 16 Capital Assets Desk Audit-FY 14 and FY 15 Accounts Receivable Desk Audit-FY 15 Year-B Conducted in FY 17 MOST Desk Audit- FY 16 Year-C Conducted in FY 18 Capital Assets *Desk Audit-FY 16 *Physical Verification-FY 18 Physical count of MOST-FY 18

Agency Audit Plan Conducted Every Year 5

Agency Audit Plan Every Year 6 Agency SMART Payments- Audit Services:  Audit sample of current year transactions:  Under delegated audit authority  Not currently reviewed by Audit Services via SMART workflow  The 12-month period for review will run from March through February  Example-in Year B review will begin in March FY16 and end in February FY17  Audit prior year transactions when combined payments to vendors for the year exceeds delegated purchasing authority  Verify W-9s, where applicable Agency:  Provide payment support documentation or information, as requested

Bond Disclosure- Audit Services:  Verify the bond disclosure is posted on agency websites, if the agency has their financial statements posted on their website Outstanding Audit Findings- Audit Services:  Address any corrections or changes required from any outstanding prior year findings Agency Audit Plan Every Year 7

Agency Audit Plan Year A Conducted in FY 16 8

Capital Assets - Audit Services:  Review capital outlay purchases for FY 14 and FY 15  Review documentation provided by agency Agency:  Provide agency policy for safeguarding of assets  Verify a sample of assets, as requested by Audit Services  Provide support documentation for a sample of assets purchased and disposed for FY 14 & FY 15, as requested  Provide additional support documentation or information, as requested Agency Audit Plan Year A 9

Accounts Receivable - FY 15- Audit Services:  Verify required reports for CAFR were submitted, such as DA-32  Verify delinquent accounts and collection practices follow statewide Department of Administration (DofA) policy  Review deposit adjustments for movement of money out of liability accounts Agency:  Provide policy for receivables and delinquent accounts, if appropriate  Provide fiscal year-end aging report  Provide a copy of records used to track any receivables outstanding at fiscal year end  Provide additional support documentation and information, as requested Agency Audit Plan Year A 10

Agency Audit Plan Year B Conducted in FY 17 11

 Petty Cash Funds  Imprest Funds  Change Funds  Check Cashing Change Funds  Fee Funds  Trust Funds  Canteen Funds  Work Therapy Funds  Benefit Funds Agency Audit Plan Year B Money Outside of State Treasury (MOST) - FY

Money Outside of State Treasury (MOST) - FY16- Audit Services:  Review documentation provided by agency and the FIT team  Review distribution forms, bank statements, bank use, and reconciliations forms, where applicable  Review SMART vouchers for replenishment or expenditure recognition, where applicable  Review fund verification policies, where applicable  Review fund restoration and check cashing practices, where applicable Agency:  Complete updated verification and maintenance forms for all funds  Provide additional support documentation and information not already submitted to the FIT team, as requested Agency Audit Plan Year B 13

Agency Audit Plan Year C Conducted in FY 18 14

Capital Assets - Audit Services:  Review capital outlay purchases for FY 16  Review documentation provided by agency  Complete physical verification of select capital assets Agency:  Provide updated agency policy for safeguarding of assets if any changes were made in the last two years  Provide support documentation for a sample of assets purchased and disposed during FY 16, as requested by Audit Services  Prepare for on-site visit regarding assets that have been selected by Audit Services for verification  Provide any additional support documentation or information, as requested Agency Audit Plan Year C 15

Money Outside of State Treasury (MOST) - FY 18- Audit Services:  Complete physical count of selected funds on-site with agency  Verify the agency practice for the physical count of funds kept on-site with agency Agency:  Prepare for on-site visit regarding funds selected for verification  Provide support documentation or information, as requested, regarding the physical count of funds Agency Audit Plan Year C 16

Audit Plan Section FY 2016 (Year A) FY 2017 (Year B) FY 2018 (Year C) Agency SMART Payments Sample Audited Capital Assets Desk Audit___ On-Site Physical Verification, & Desk Audit Accounts Receivable Desk Audit___ Money Outside the State Treasury ___Desk Audit On-Site Physical Counts / Reconciliation 17 Agency Audit Plan Recap Every Agency, Every Year Audits may be subject to a more in-depth review as assigned by management

Agency Audit Plan Questions and Answers If you have any questions that were not answered today, please contact: Janette Martin at: Or Agency Audit Services Team at: Statewide Policy Manual available at: