2. PREPARING FOR A FISCAL AUDIT OF THE DYS SUBSIDY GRANT PRESENTED BY: GREG STEPHENS ADMINISTRATOR OFFICE OF AUDITS AND FISCAL COMPLIANCE

3. AUDIT QUESTIONNAIRE THE DYS AUDITOR WILL REVIEW, WITH THE COURT’S CONTACT PERSON, A BRIEF LIST OF GENERAL QUESTIONS: –RELATIVE TO THE FISCAL AND PROCEDURAL OPERATIONS OF THE SUBSIDY GRANT (E.G., BOOKKEEPING, REPORTING, APPROVING, ORDERING, DISTRIBUTING, RECONCILING, ETC.) –PERTINENT TO EXISTING INTERNAL CONTROLS IN PLACE

4. REVENUE PROVIDE THE DYS AUDITOR A COPY OF THE VALIDATED PAY-IN RECEIPT ATTRIBUTABLE TO THE 510 (BASE) REVENUE RECEIVED PROVIDE THE DYS AUDITOR COPIES OF VALIDATED PAY-IN RECEIPTS ATTRIBUTABLE TO THE RECLAIM (VARIABLE) REVENUE RECEIVED

5. REVENUE (Continued) PROVIDE THE DYS AUDITOR COPIES OF VALIDATED PAY-IN RECEIPTS FOR REIMBURSEMENTS THAT SHOULD BE USED TO OFF-SET (REDUCE) SUBSIDY GRANT EXPENSES PROVIDE THE DYS AUDITOR A PRINT-OUT OF THE COUNTY AUDITOR’S LEDGER DETAILING REVENUE TRANSACTIONS IN THE FDC&C FUND

6. FDC&C FUND (JUNE 30 TH ) CASH BALANCE PROVIDE THE DYS AUDITOR A PRINT-OUT OF THE COUNTY AUDITOR’S FUND BALANCE REPORT DETAILING THE CASH ON HAND IN THE FDC&C FUND AS OF JUNE 30 th –THIS PROVIDES A SNAPSHOT OF THE CASH AVAILABLE AT THE END OF THE FISCAL YEAR

7. COUNTY FINANCIAL EXPENDITURE FINAL REPORT PROVIDE THE DYS AUDITOR A COPY OF THE PRIOR YEAR’S COUNTY FINANCIAL EXPENDITURE FINAL REPORT –UTILIZED TO ENSURE THE PREVIOUS YEAR’S CARRYOVER AMOUNT IS ACCURATELY REPORTED IN THE FISCAL YEAR BEING AUDITED

8. COURT’S LEDGER A LEDGER OF SUBSIDY GRANT EXPENSES AND REVENUES DETAILING THE DATE OF THE TRANSACTION, THE NAME OF THE VENDOR, AND THE AMOUNT OF THE TRANSACTION –THIS LEDGER SHOULD CAPTURE ALL FISCAL TRANSACTIONS REFLECTED BY THE COUNTY AUDITOR (TO BE SEPARATED BY PROGRAM AND BY LINE ITEMS WITHIN EACH PROGRAM) –USED WHEN RECONCILING MONTHLY ACTIVITY TO THE COUNTY AUDITOR’S LEDGER

9. EXPENDITURES PROVIDE THE DYS AUDITOR COPIES OF ALL PURCHASE INVOICES OR VENDOR RECEIPTS WHERE SUBSIDY GRANT FUNDS WERE USED TO PAY FOR EXPENSES (ENSURE COMPLETE AND LEGIBLE COPIES ARE MADE AVAILABLE) –TO FACILITATE THE AUDIT PROCESS, INVOICES SHOULD BE ORGANIZED BY PROGRAM AND MAINTAINED BY LINE ITEM WITHIN EACH PROGRAM

10. EXPENDITURES (Continued) EXPENDITURES MUST BE INCURRED WITHIN THE FISCAL YEAR (JULY 1 st THROUGH JUNE 30 th ) AND MUST BE FULLY PAID AND LIQUIDATED BY SEPTEMBER 30 th –THE COURT MUST HAVE A LEGAL OBLIGATION TO FULFILL THE FISCAL INDEBTEDNESS OF A SPECIFIC EXPENSE FOR IT TO BE INCURRED BY JUNE 30 th

11. CONTRACTS AGREEMENTS BETWEEN THE COURT AND CONTRACTORS OR OTHER SERVICE PROVIDERS ARE HIGHLY RECOMMENDED AS A SAFEGUARD TO THE COURT –WRITTEN AGREEMENT SHOULD BE MAINTAINED ON FILE DOCUMENTING THE TERMS AND CONDITIONS –SHOULD BE MADE AVAILABLE FOR REVIEW DURING THE AUDIT PROCESS

12. SALARIES & FRINGES ENSURE THAT THE PROPER FISCAL YEAR CUT-OFF IS OBSERVED –EXPENSES ARE RECOGNIZED FOR THE PERIOD THEY REPRESENT, NOT WHEN THEY ARE PAID –ONLY EXCEPTING UNEMPLOYMENT AND WORKER’S COMPENSATION EXPENSES, WHICH ARE RECOGNIZED IN THE FISCAL YEAR THAT THEY ARE ACTUALLY PAID

13. SALARIES TESTING SAMPLE TESTING OF ONE PAY PERIOD –PROVIDE THE DYS AUDITOR A COPY OF THE COUNTY AUDITOR’S PAYROLL JOURNAL/WORKSHEET DOCUMENTING EACH INDIVIDUAL PAID WITH SUBSIDY GRANT FUNDS DETAILS EACH EMPLOYEE’S TOTAL HOURS WORKED AND THE AMOUNT COMPENSATED

14. SALARIES TESTING (Continued) SAMPLE TESTING OF ONE PAY PERIOD –REVIEW OF EMPLOYEE TIMESHEETS –REVIEW OF LEAVE REQUEST FORMS –REVIEW OF LEAVE ACCRUAL LEDGERS IF THE COURT HAS THE PRIMARY RESPONSIBILITY TO MAINTAIN LEAVE CALCULATIONS AND BALANCES

15. COUNTY AUDITOR’S LEDGER PROVIDE THE DYS AUDITOR A PRINT- OUT OF THE COUNTY AUDITOR’S LEDGER DETAILING EXPENDITURES BY DATE, VENDOR NAME AND TRANSACTION AMOUNT –T–TO CAPTURE ALL FDC&C FUND ACTIVITY IN A CONCISE FORM, IT IS REQUESTED THAT THE PRINT-OUT BE GENERATED FROM JULY 1st THROUGH SEPTEMBER 30th (MAY REQUIRE TWO CALENDAR YEAR PRINT-OUTS)

16. MONTHLY RECONCILIATION IMPORTANT ROUTINE MAINTENANCE TO ENSURE AGREEMENT AND FISCAL ACCOUNTABILITY –VERIFICATION OF COURT’S LEDGER ENTRIES WHEN COMPARED TO THE COUNTY AUDITOR’S LEDGER ENTRIES –ENSURING THE ACCURACY AND PROPER INCLUSION OF ALL RELATED EXPENDITURE AND REVENUE TRANSACTIONS –RESEARCH, FULLY IDENTIFY AND RESOLVE ANY NOTED DISCREPANCIES

17. THANK YOU IF YOU HAVE ANY QUESTIONS OR REQUEST FURTHER ASSISTANCE, PLEASE CONTACT: GREGORY T. STEPHENS ADMINISTRATOR OFFICE OF AUDITS AND FISCAL COMPLIANCE (614) 466-4773