1. Auxiliary Organizations Summary of Audit Findings for FY13/14 and Corrective Action Plan Evajoy Tito, Manager, Financial Reporting, FS / SFSR Chancellor’s Office May 19, 2015

2. Learning Objectives: At the end of the presentation, the participants should be able to: Identify some of the deadlines for component unit reporting relating to corrective action plan Know the audit findings statistics for component units from FY2012, FY2013 and FY2014 Describe the necessary actions to be taken when there is an internal control finding for the component unit Know how to complete the corrective action plan template Understand the process flow of monitoring and reporting component units with internal control findings. May 2015Year-End GAAP Training2

3. Timeline May 2015Year-End GAAP Training3 Oct 30 Fri Submission of Single Audit OMB A-133 reports Submission of Auditors’ Communications to Management Nov 18 Wed Provide the corrective action plan template to component units Dec 2 Wed Submission of completed corrective action plan template and evidence of completion

4. Internal Control Findings: Statistics May 2015Year-End GAAP Training4

5. Internal Control Findings FY2014 May 2015Year-End GAAP Training5

6. Internal Control Findings FY2014 (cont.) May 2015Year-End GAAP Training6

7. Knowledge Check Question #1 Select one of the most common internal control findings during FY13/14 a.Net asset classification b.Procurement, suspension and debarment (OMB A-133) c.Reconciliation of general and subledgers d.Revenue recognition May 2015Year-End GAAP Training7

8. Auditors’ communication The auditors’ communication is usually in the form of the following: SAS114 Letter: The Auditor’s Communication with Those Charged with Governance SAS115 Letter: Communicating Internal Control Related Matters Identified in an Audit An auditor does not issue a communication stating that no significant deficiencies were found. May 2015Year-End GAAP Training8

9. Corrective Action Plan Template May 2015Year-End GAAP Training9 1 Significant Deficiency or Material Weakness? 9 Corrective Action Plan 2 Type10 Status 3 Program11 Completion Date 4 Criteria 12 Reason for Extended Remediation Period 5 Condition/Context13 Documentary Evidence 6 Cause14 Contact Person 7 Effect15 Signature 8 Recommendation

10. Knowledge Check Question #2 Select one of the sections in the corrective action plan template a.Objective b.Conclusion c.Procedures d.Condition May 2015Year-End GAAP Training10

11. What’s Next? May 2015Year-End GAAP Training11 Submission of completed corrective action plan and documentary evidence SFSR review Finance Management review Office of Audit and Advisory Services Review Presentation to the Board of Trustees

12. Knowledge Check Question #3 Which of the following departments in the Office of the Chancellor reviews the corrective action plan? a.Management & Accounting Practices Office b.Accounting c.Office of Audit & Advisory Services d.Capital Planning Design & Construction May 2015Year-End GAAP Training12

13. www.calstate.edu May 2015Year-End GAAP Training13