Chapter 7- Management�s Discussion and Analysis (MD&A) - PowerPoint

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Chapter 7- Management�s Discussion and Analysis (MD&A) - PowerPoint Powered By Docstoc
					Preparing for the Audit
Presented by Elisa Stilwell
Senior Manager - KPMG LLP

KPMG LLP
Overview - Proper Care and Feeding of the
Audit Process

   Role of the auditor
   Role of the campus
   Planning and lots of communication
   Campus preparedness - having all required
    items ready on first day of fieldwork!
       Directly impacts the ability to stay “on track” with
        required audit timeline and CO submission deadlines




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The Role of the Independent Auditor
   Provide PBC List (contained in Chapter 9)
       Financial statement audit
       A-133 audit (higher and limited scope)

   KPMG campus partners to communicate
    campus audit preparedness to Chancellor’s
    Office (CO) on first day of fieldwork
       Planning meeting/ entrance conference held
       All PBC schedules provided
       Completed and approved reporting package provided
        to KPMG campus team
       Draft financial statements (excluding MD&A) provided
        to KPMG campus team
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The Role of the Independent Auditor (cont’d)

   Communicate progress and any difficulties or
    issues encountered during the audit, including
    proposed management letter comments and
    single audit findings, to:
       Campus management
       CO via weekly CO meetings with campus partners
       KPMG Systemwide Team via weekly progress reports

   Meet deadlines set by CO, campus and audit
    team (refer to audit timeline for key dates)



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Understanding the Role of the Campus

   To have all requested schedules, including the
    completed and approved reporting package,
    PRIOR to the first day of fieldwork (refer to
    Engagement Team Phone List for fieldwork start
    dates)
   Provide suitable workspace, including phone
    and internet connections
   Designate campus contacts for financial
    statement and A-133 audits
   Meet deadlines set by CO, campus and audit
    team (refer to Audit Timeline for key dates)
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First Day of Fieldwork – Submission to
KPMG Campus Team

   Completed and approved campus preparedness
    checklist (available on CO website)
   All PBC schedules – to be provided in a
    separate set of PBC binders with indexing of all
    schedules (refer to Chapter 9)
   Completed and approved reporting package
   Draft financial statements (excluding MD&A)




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Key Deadlines – Submission to CO

   Auxiliary organizations’ audited financial
    statements, including supplementary information
    schedules – September 30, 2005
   Campus reporting package (includes financial
    statement and A-133 audits, including FISAP
    and findings, if any) – October 18, 2005
   Campus fluctuation analysis by financial
    statement line item – October 18, 2005
   Campus MD&A (reviewed and approved by
    management and KPMG teams) – October 18,
    2005
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Planning Meeting/ Entrance Conference

   Campus and KPMG team introductions
   Current year activity and issues
   Scope of audit
   PBC list clarification
   Confirmations
   Key deadlines
       Auxiliary organizations
       Reporting package
       Management’s discussion and analysis
       Stand-alone financial statements
   Confirm fieldwork timing
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 Sample
Schedules




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2005 A-133 Higher Scope Campuses

   Bakersfield
   Dominguez Hills
   Hayward
   Humboldt
   Los Angeles
   San Bernardino
   San Diego
   San Luis Obispo

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KPMG Information Risk Management (IRM)
Audit Team – Scope of Work

   Update understanding of the IT environment via scheduled
    conference calls with campuses and review of selected
    documentation
   Data conversion for PeopleSoft baseline implementation at
    selected campuses
   ERP review
       Access controls
       Configuration controls
   Financial aid system controls at selected campuses (8
    higher scope A-133 campuses)
       Department of Education upload to campus systems
       Grade system – user access
       Interface from grade system to financial aid system   11
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IRM Testwork– Key Dates

   May 6, 2005 – IRM PBC list distributed to campuses
   May 19, 2005 – Questions distributed for campus
    conference calls scheduled beginning May 31, 2005
    (approximately 2 hours per campus)
   May 31 to June 10, 2005 – Conference calls to be held
    with campuses to discuss applications, networks,
    configuration changes, and continuity planning / computer
    operations
        Drives planning and scoping efforts
   June 17, 2005 – Submission of all items on PBC list to CO
    (ERP review covering access controls and configuration
    controls)
   Dates to be determined – on-site testwork at selected
    campuses
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 Questions?




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