1. GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
Roger Boyd, Director IT Services
October 1, 2017

2. Agenda Organization Continuous improvement efforts Changing landscape
Questions
Professional People with Purpose

3. Organization Financial Audit Division Performance Audits IT Services
Educational Audits
State Government Audits
Performance Audits
IT Services
Non-profit and Local Government
Sales Ratio
Administration
Professional Standards and Practices
Professional People with Purpose

4. Organization Benefits Promotes sustainability
Builds organizational capacity
Increases knowledge across practice areas
Offers different audit experiences
Provides ability to smooth out engagement timing
Ensures right resources at the right time
Increases responsiveness to client needs
Professional People with Purpose

5. Continuous Improvement Efforts
What is an effective audit?
Delivers the right audit opinion
Yields confidence
Addresses entity risk
Is based on an understanding of the environment
Culture that continuously delivers increased quality
Professional People with Purpose

6. Continuous Improvement Efforts
Our leaders are committed to successful audit outcomes
Engagement Leadership
Provides leadership and oversight to engagement teams
Promotes ownership
Commits appropriate time to:
Communicate directly with management
Communicate with and guides staff
Our teams are knowledgeable and experienced
Engagement Teams
Possesses a thorough understanding of the environment
Demonstrates professional integrity and objectivity
Communicates clearly and concisely
Provides insights and recommendations for improvements where applicable
Professional People with Purpose

7. Continuous Improvement Efforts
Our teams strive to perform efficient quality engagements
Engagement Fieldwork
Conducts entrance and exit meetings timely
Communicates audit purpose, scope, and timelines
Performs and completes fieldwork timely
Holds regular status updates
Presents issues clearly and timely to allow appropriate action by management
Interacts with the auditee throughout the entirety of the engagement
Our teams produce relevant and timely audit reports
Wrap-up and Reporting
Communications are specific and relevant
Draft reports are circulated timely for comment
Final reports are issued within the communicated timeframe
Professional People with Purpose

8. Continuous Improvement Efforts
Planning
Set appropriate tone at the top
Be responsive to request for information and meetings
Prepare an adequate work area for auditors to use
Provide auditors with access to IT systems and other information as requested
Fieldwork
Attend entrance and exit conferences
Encourage your staff to keep you informed of audit issues as they arise
Maintain interaction with auditors throughout the engagement
Attend regularly scheduled status meetings
Seek clarification when needed from our auditors
Reporting
Be responsive to issues throughout the engagement
Consider strengthening internal controls and develop new processes or procedures where needed
Consider revising your risk assessment process if audits reveal issues not yet addressed
Avoid repeat findings by addressing issues as quickly as possible
Interact with auditors to ensure complete and accurate understanding of issues
We need your help
Professional People with Purpose

9. Continuous Improvement Efforts
Client focus
High number of manual journal entries
Financial statement and note disclosure errors
Ensure quality of information reported to SAO
Strengthen internal controls over financial reporting
Understand your obligations for GASB 74
Audits will occur in Spring 2018
75 in effect for fiscal years beginning after June 15, 2017
GASB 74/75 – OPEB
Subrecipient monitoring
Subrecipient risk assessments
Ensure correct rates are used by subrecipients
Uniform Guidance (UG)
Professional People with Purpose

10. Continuous Improvement Efforts
Reporting requirement changes
Requires level 2 detail for BoA payments
Vendor name
MCC description
Purchase date
Amount
Transaction number
TIGA Reporting Requirements
Professional People with Purpose

11. Continuous Improvement Efforts
Internal application changes
Improved graphical user interface
Simplified data entry
Increased export features
More reporting options
Enhanced program views and filtering capability
Schedule of Expenditures for Federal Awards (SEFA)
Professional People with Purpose

12. Changing Landscape Third-party monitoring and risk assessments
Assess internal control impact
Understand and document your risk related to use of third party service providers
Understand your contractual and legal obligations
Understand the nature of the service provided
Understand the impact to your financial, compliance and operational reporting requirements
Evaluate service organization control reports (SOC)
Understand management’s description of its systems of internal controls
Understand and assess the relevance of the use of sub-service organizations
Understand controls in place at the service organization
Understand controls you should have in place related to third party services (Complimentary User Entity Control)
Assess operating effectiveness of internal controls
Understand and document controls in place to address risks
Conduct reviews to ensure effectiveness of controls
Complete evaluation of SOC reports and control assessments annually
Professional People with Purpose

13. Changing Landscape Cybersecurity
Increased focus on risk assessments related to cybersecurity
Understand cybersecurity risks
Establish governance
Develop policies, procedures and oversight processes
Protect networks and infrastructure
Address risks associated with:
Remote access
Fund transfers
Third-parties
Develop processes to detect and respond
Professional People with Purpose

14. Changing Landscape Cybersecurity New for FY 2018
Federal compliance supplement requires a review of protection of student information in accordance with the Gramm-Leach-Bliley Act (GLBA)
Impacts University and Technical College entities
Requires entities to have demonstrated capabilities in order to comply with GLBA
DOAA’s IT Audit group will begin cybersecurity reviews at select agencies
Communication with agency management
Efforts coordinated with GTA to avoid duplicative efforts
Professional People with Purpose

15. Changing Landscape Data Act
Digital Accountability and Transparency Act (DATA Act) signed into law on May 9, 2014 (Public Law No )
Creates a government-wide data standard
Increases the availability, accuracy and usefulness of federal spending information
Requires electronic reporting of 57 defined data elements
Promotes use of analytics to spotlight indicators of fraud and waste
Effective for the 2019 reporting year
Professional People with Purpose

16. Changing Landscape Data Act Preparation
Review and understand the 57 DATA Act elements required for reporting
Perform an inventory of agency data and associated business process and systems
Establish an agency work group and begin determination of potential impact.
Professional People with Purpose

17. Changing Landscape Data Act Resources Whitehouse.gov:
Data Coalition:
GITHUB:
USASpending:
Professional People with Purpose

18. Who Audits the Auditor? Annual internal quality review program
DOAA is audited annually by and independent IPA
Address deficiencies like other agencies
External peer review conducted every three years
Federal, financial, and performance audits
Received “pass” on our latest review
Professional People with Purpose

19. Questions?
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