ways to prepare for an audit

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Ways to Prepare for an Audit. Legislative Division of Post Audit. Statewide Single Audit. Two parts to the SWSA Statewide Financial Audit Statewide A-133 Federal Compliance Audit LPA oversees the audit, but contracts with an external CPA firm. Know the Rules. - PowerPoint PPT Presentation


  • Legislative Division of Post Audit

  • Two parts to the SWSAStatewide Financial AuditStatewide A-133 Federal Compliance Audit

    LPA oversees the audit, but contracts with an external CPA firm

  • Department of Administration Policies, Processes and ProceduresGenerally accepted accounting principles

  • Financial accounting resourcesCodification of Governmental Accounting and Financial Reporting Standards by GASBAudit and Accounting Guide: State and Local Governments by AICPAGovernmental Accounting, Auditing, and Financial Reporting by GFOA

  • Grant award documentApplicable CFROMB Circular A-87 Cost Principles for State, Local, and Indian Tribal GovernmentsOMB Circular A-102 Grants and Cooperative Agreements with State and Local Governments (common rule)

  • OMB Circular A-133 Audits of States, Local Governments, and Not-for-Profit OrganizationsCompliance supplement

  • Read the instructions carefullyDont add or delete columns loads up into a databaseCall if you have questionsStart early

  • Report and correctly classify:Non-monetary expendituresTransfers to other state agenciesAwards to subrecipientsClusters of programsCFDA numbersReconcile the SEFA survey to the general ledger and to the reports

  • Know who the key personnel in your agency are and have them availableHave documents readyAnswer questions fully and timelyIf you dont understand who or what the auditors want, askIf you dont think the auditors understand, persist in explaining to themErr on the side of over-communicating.

  • Read your findings carefullyVerify the accuracy of your findingsShare the findings with key stakeholders (program personnel, agency head)Do the above as soon as you get your findings. Dont wait until the corrective action plan is due

  • If you disagree with the findings, think some of the information is inaccurate, or does not correctly characterize the situation, notify the auditors and Legislative Post Audit immediatelyThoughtfully craft your corrective action plan

  • The state has received a material weakness for the past two years for not being able to accurately report capital assets

  • The state had to re-issue the 2011 CAFR and related financial audit report because it did not include around $475 million in non-monetary revenues and expenditures

  • The state has received a material weakness for the past two years for not being able to compile an accurate SEFA reissued 2011 federal audit reportMissing non-cash items in 2011 Missing and misreported information resulted in13 different versions of the 2012 SEFA

  • Re-works take up your timeAuditors charge for time spent re-working because of mis-reported informationBecause of SEFA problems, auditors worked hundreds of extra billable hoursAgencies pay for additional charges

  • Martin Eckhardt (financial)martin.eckhardt@da.ks.gov 785-296-2661

    Gail Barnhart (financial and SEFA)gail.barnhart@da.ks.gov 785-296-3404

    Roger Basinger (SEFA)roger.basinger@da.ks.gov785-296-8083

  • Legislative Division of Post Audit800 SW Jackson St, Ste 1200785-296-3792

    Julie Pennington, CPA, CIA, CFEFinancial-Compliance Audit Managerjulie.pennington@lpa.ks.gov785-296-5817