County of Riverside ■ Office of the Auditor-Controller FY 2008 CAFR/Audit Highlights Robert E....
Transcript of County of Riverside ■ Office of the Auditor-Controller FY 2008 CAFR/Audit Highlights Robert E....
County of Riverside ■ Office of the Auditor-Controller
FY 2008 CAFR/Audit Highlights
Robert E. Byrd, CGFM
County Auditor-Controller
County of Riverside ■ Office of the Auditor-Controller
CAFR and PAFR
CAFR and PAFR can be found at:http://www.auditorcontroller.org/opencms/publications/index.html
County of Riverside ■ Office of the Auditor-Controller
Official County Reports
• Dazel Reports (July 2008 tab) include:– June Final thru Period 12 Report
• Run August 08, 2008.
• This includes Period 1-12 only.
– FY2008 Final Report• Run January 17, 2009
• This includes Period 1-12 and Period 998 adjustments for FY 2008.
County of Riverside ■ Office of the Auditor-Controller
CAFR/Audit Highlights
• Audit was completed 1st week of December.
• Positive feedback from external auditors.
• Component Units submitted separate audited financial statements earlier than previous years.
County of Riverside ■ Office of the Auditor-Controller
SAS 112
Communicating Internal Control Related Matters Identified in an Audit.•Requires auditors to communicate matters related to an entity’s internal control over financial reporting in 3 categories.
• Control Deficiency
• Significant Deficiency
• Material Weakness
County of Riverside ■ Office of the Auditor-Controller
SAS 112-Continued
Material Weakness
Significant Deficiency
Control Deficiency
• Material Weakness:– Identification of a misstatement
by the auditor
• Significant Deficiency:– Lack of controls over YE
financial reporting
• Control Deficiency
– Lack of controls in one area
County of Riverside ■ Office of the Auditor-Controller
Management Letter
• Control deficiencies were reduced from five in FY07 to three in FY08.1. Comprehensive capital assets report is not
available in the Financial System.
2. Lack of County-wide Fraud Prevention Program
3. Lack of proper documentation for terminating Financial System Users.
County of Riverside ■ Office of the Auditor-Controller
SAS 114 Report
• The Auditor’s Communication with those Charged with Governance
• Requires external auditors to communicate certain significant matters related to the audit:– Significant findings
– Accounting practices and policies
– Accounting estimates
– Difficulties encountered during the audit
– Disagreements with management
– Uncorrected misstatements (Passed audit differences)
County of Riverside ■ Office of the Auditor-Controller
SAS 114 - Continued
• What are Passed Audit Differences?
Immaterial, uncorrected audit differences identified during the course of the audit process.
County of Riverside ■ Office of the Auditor-Controller
Passed Audit Differences
Why passed audit differences are important?
• The sum of multiple passed audit differences could accumulate to a material balance.
• In FY08, two items were reported to the Board of Supervisors on SAS 114 Report:– Prior period adjustment posted in the current year.
– Due to Other Governments: GL amount did not match YE Schedule for one selected department.
County of Riverside ■ Office of the Auditor-Controller
Passed Audit Differences - Continued
Fiscal year 2008 SAS 114 Report to the Board:
County of Riverside ■ Office of the Auditor-Controller
What is the County Departments Role?
DAILY:• Ensure activity is properly posted to the proper
Fund, Department and Account.
• Establish and maintain internal controls to ensure information is properly and timely booked in the Financial System.
• Follow generally accepted accounting principles.
County of Riverside ■ Office of the Auditor-Controller
What is the County Departments Role?-Continued
MONTHLY:• Reconcile Trial Balances:
– Assets and liabilities must be supported by proper documentation (ie: outstanding billing invoices, outstanding vouchers, excel spreadsheets, etc.)
– Accounts must have a natural balance Research unusual credits in asset or expenditure accounts Research unusual debits in liability and revenue accounts
– Most balance sheet accounts should clear within a year.
County of Riverside ■ Office of the Auditor-Controller
What is the County Departments Role?-Continued
MONTHLY-Continued:• Perform monthly invoicing to external/internal
entities.– Do not wait until Year End (or the following year).
• Submit Capital Assets forms and maintain AM Module up-to-date.
County of Riverside ■ Office of the Auditor-Controller
What is the County Departments Role? - Continued
QUARTERLY:
• Reconcile, reconcile, reconcile.
• Provide quarterly flux and analysis to ACO as requested.
• 3rd Quarter:– Submit Forms S-9, T-9 and V-9 timely and accurately.
Must tie to GL (Deferred Revenue, DFOG and DTOG)
– Ensure your department will have sufficient appropriations for YE Accounts Payable Accrual!
County of Riverside ■ Office of the Auditor-Controller
What is the County Departments Role?
YEAR-END:
• Become familiar with the YE Calendar deadlines.
• Submit all schedules and accruals by the due date (usually 3rd week in July).
• Confirm data on YE Schedules:– Is it accurate?
– Does it tie to the general ledger?
– Is all supporting documentation included?
County of Riverside ■ Office of the Auditor-Controller
What is the County Departments Role?
AUDIT PROCESS:
• Provide comprehensive data to auditor’s inquiry.
• Make information available to ACO and auditors such as billing invoices, receipts, payments, reports, spreadsheets, etc.
County of Riverside ■ Office of the Auditor-Controller
What is the ACO’s Role in the Audit Process?
• Audits the daily information provided by departments through journals, vouchers and receipts.
• Publishes SPM’s and YE Manual to assist all departments maintain county-wide policies and procedures.
County of Riverside ■ Office of the Auditor-Controller
What is the ACO’s Role in the Audit Process?-Continued
• Reviews and implements new GASB pronouncements.
• Establish chart of accounts.
• Provides guidance and assistance to departments as needed.
County of Riverside ■ Office of the Auditor-Controller
What is the ACO’s Role in the Audit Process?-Continued
• Compiles all YE Schedules, reconciliations and communications for external auditors.
• Coordinates audit process with the external auditors.
• Compiles the financial data into the CAFR.
County of Riverside ■ Office of the Auditor-Controller
How can we work as team?
Communicating
Training
Cooperation with one another
County of Riverside ■ Office of the Auditor-Controller
2009 CAFR/AUDITQ:When does the 2009 audit process start?
A: July 1, 2008
Q: Who are the external auditors?
A: Current RFP in progress to hire the new audit firm.
County of Riverside ■ Office of the Auditor-Controller
2009 CAFR/AUDIT - Continued
INTERIM AUDIT:
• Tentatively schedules for April/May 2009
• Auditors may select multiple departments to evaluate internal controls.
• Be available to meet auditors, discuss controls, document processes, explain programs, etc.
County of Riverside ■ Office of the Auditor-Controller
2009 CAFR/AUDIT-Continued
Component Units:
ACO to schedule annual meetings for April 2009 with each Component Unit.
County of Riverside ■ Office of the Auditor-Controller
2009 CAFR/AUDIT Continued
NEW GASB Implementations for FY 2009:
• GASB 49-Accounting and Financial Reporting for Pollution Remediation Obligations.
County of Riverside ■ Office of the Auditor-Controller
Who to Contact
Chart of Accounts
Simpler/CAFR/New GASB
Year End
County of Riverside ■ Office of the Auditor-Controller
Questions
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County of Riverside ■ Office of the Auditor-Controller
The End