1. Audits and Fiscal Reporting
Todd Sprinkle & Lucas Karr
February 22, 2017

2. Internal Auditing
Internal Auditing is an independent, objective assurance
and consulting activity designed to add value and improve an
organization’s operations. It helps an organization
accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of the
following:
Risk Management
Control
Governance Processes
The Institute of Internal Auditors (The IIA) “Standards and Guidance”

3. Our Goal
To ensure compliance with funding and Community Corrections standards
To ensure financial records retained are in compliance with IDOC and/or county requirements
To serve as a resource for all financial/audit related questions

4. How to Prepare for an Audit
Notified via approximately 30 days before scheduled audit date
Review fiscal audit checklist
Fiscal Reports
Complete carryover worksheet
Financial Statement 13
Be available for questions
“Don’t Panic!”

6. What We Look At Grant Payments (Monthly quietuses)
Project Income (Daily deposits, Monthly quietuses)
Grant Carryover (Review worksheet)
Vehicle Mileage Logs (Detailed daily activity)
Claims (Effective use of dollars, sales tax, approval)
Fixed Asset Inventory List ($500 or more or 1 yr. life)
“A person cannot correct something if
he/she doesn’t know it’s wrong.”

7. DETAILS FROM MILES DRIVEN1
ATTACHMENT : I
Commission number
Agency Fund / Center
Status
END MILEAGE
Temp Perm
Date in service (month, day, year)
Time
START MILEAGE AM PM
Date out of service (month, day, year)
MILES DRIVEN
DAY
ODOMETER READING
DETAILS FROM MILES DRIVEN1
REASON FOR TRAVEL
COMMUTE2 MILES
GASOLINE
OIL
MAINTENANCE COSTS
DRIVER INITIAL
FROM TO
GAL.
COST
Qts
Cost
Comm.
State
Ending Milage
Totals
0.00
1 For Temporary vehicles, show each individual trip including areas for each location. For Permanent vehicles,
record trips in accordance with your agency's policies.
2 Must include number of personal miles
I hereby certify that there were no commuting or personal miles driven except as noted and all other mileage was driven in the discharge of authorized duties.
Pre-Audited and approved by:
State agency (signature)
Name of agency
Division
Signature of driver
Indiana Department of Correction
Fianance
REPORT OF VEHICLE MILEAGE AND COST
State Form (R2 / 1-97)
Approved by State Board of Accounts 1997
STATE MOTOR POOL

8. Post Audit - Exit Interview
Meet with Director and staff to discuss audit
Share best practices
Findings/Recommendations
Corrective Action Plan (C.A.P.)
Audit Letter
Director
Advisory Board
Grant Carryover Invoice
Payment due 30 days from audit letter

9. Frequently Asked Questions
Am I required to use the Vehicle Mileage Log (State Form 13696) or can I create my own form?
It is acceptable to create your own Vehicle Mileage Log as long as long as your form captures the same information as the State form.
What is the Performance Bond and what is required for the audit?
The Performance Bond is liability protection against potential employee fraud. A copy of the Performance Bond is needed at the time of the audit.

10. FAQ’s cont’d
My grant carryover is $ Do I have to return such a small amount?
You will be invoiced for any amount under $ If your grant carryover is under $100.00, you will need to request a transfer with your Regional Director for that amount to be moved into the Project Income fund.
Is lodging tax exempt?
Hotels have the legal right to charge Indiana sales tax. If a hotel chooses to charge you State sales tax, the cost will have to be absorbed within your office. If a hotel does not charge you State sales tax, then you can just pay what you have been charged.

11. FAQ’s cont’d Can two (2) funds be used to separate the grant years?
Yes, we prefer that it is done that way to isolate the carryover from one year to the other.
Can I write on the Auditor’s report in order to make adjustments?
Absolutely!
“The question you have is probably the same
question that everyone else has.”

12. Phrases to Remember Don’t Panic!
I know all about that, I just don’t remember.
A person cannot correct something if he/she doesn’t know it’s wrong.
It is possible to disagree with respect, to be wrong with integrity, and to be right with humility.
The question you have is probably the same question that everyone else has.

13. Financial Tracking Monthly report due by the 15th of each month
Monthly reports should show your agency on track based on budgetary planning.
Example: The December report should show approximately 50% of spending has taken place for the year.

17. Payments When will I get my up-front funding?
When will I get my monthly funding?
If I am receiving new funding through an amendment, when will I receive that?
Who do I contact with questions about my payment?

18. QUESTIONS?