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					AUDITS
Session Objectives

• To familiarize participants with the
  Inspector General Audit Process
• To better prepare participants for the
  audit by providing them with information
  to develop strong financial management
  systems
• Inform participants of common audit
  findings
What is an Audit?

• Independent corroboration of
  management assertions (such as
  Financial Reports)
• Verification of factual
  representations by grantee (for
  example: Member information, or
  Financial Cash Transaction
  Reports)
What is an Audit?

• Confirmation of grant expenditures
  (these are costs claimed on
  Financial Status Reports and
  authorized in the budget)
Office of Inspector General (OIG)

• Conducts and supervises audits and
  investigations related to Corporation
  programs and operations
• Keeps the Corporation’s CEO and
  Congress informed about problems and
  deficiencies in programs and operations
  as well as the need for implementing
  corrective action
What is an OIG Audit?

• Performed by an OIG Auditor or by an
  OIG-selected Independent Public
  Accounting Firm (IPA)
• OIG Audit Managers are involved,
  whether the audit is performed by an
  OIG auditor under the Audit Manager’s
  supervision or the Audit Manager serves
  as the Task Monitor for an IPA.
What is an OIG Audit?

• An OIG Audit examines a
  Corporation program or activity and
  recommends solutions to issues
Audit Process

•   Scope of Audit
    – Usually three most recent
      completed years
    – All grantee and sub-grantee records
Self-Checks

• Do Member files contain all
  required eligibility documentation?
• Do Member contracts comply with
  grant requirements?
• Have required mid-term and exit
  evaluations been prepared,
  discussed, signed and filed?
Self-Checks

• Do the hours reported in the Web-
  Based Reporting SystemOnCorps
  agree with the Member
  timesheets?
• Were living allowances paid per
  grant requirements and was 15%
  of Member support paid with cash
  match?
Self-Checks

• Are match and in–kind donations
  documented?
• Are they allowable?
• Do the match and in-kind donations
  support the grant (are they
  necessary for the grant)
Efficient Accounting System must

• Distinguish grant versus non-grant
  related expenditures
• Identify costs by program year
• Identify costs by budget category
• Differentiate between direct and
  indirect costs (administrative costs)
An Efficient Accounting System

• Accounts for each award/grant
  separately
• Maintains Federal/non-Federal
  matching funds separately
• Records in-kind contributions as
  both revenues and expenses
An Efficient Accounting System

• Allows management to easily
  obtain financial reports at both the
  summary or detailed levels
• Accounting Information and
  documents correlate to financial
  reports
Common Audit Findings


• INTERNAL CONTROLS
• - Lack of written policies and procedures
• - Lack of segregation of duties (common
  for small organizations), person who
  writes checks should not be the person
  who reconciles the bank statements
Common Audit Findings


• TIME & ACTIVITY REPORTING
• Lack of proper timekeeping
  systems
• No timesheets or activity reports
• Timesheets based on budgeted
  figures and not actual time
Time & Activity Reporting A-87

• If an employee works on a single
  Federal award, support for salary can be
  periodic certifications by the employee
  (at least semi-annually)
• If an employee works on multiple cost
  objectives/activities, support must be 1)
  after the fact, 2) account for total hours
  worked 3) be prepared at least monthly
  and 4) signed by employee and
  supervisor
Time & Activity Reporting A-87

• Reports reflecting the distribution of
  activity of each employee must be
  maintained for all those whose
  compensation is charged (in whole or in
  part) to awards. The reports must
  reflect an after the fact determination of
  the actual activity of each employee.
  Budget estimates do not qualify as
  support.
Time & Activity Reporting A-122

• Activity reports must be signed by
  the employee and supervisor
Common Audit Findings


• MATCH
• Match is not sufficiently supported,
  claimed match activity is not in the
  approved budget and claimed
  match is not reasonable and
  necessary
Common Audit Findings

• MATCH: WHAT IS MISSING?
  – Lack of proper documentation for time
    and activity
  – Match activity not included in
    approved budget
  – Match activity not necessary to
    operate the grant and amounts
    matched not reasonable
Common Audit Findings

• AMERICORPS MEMBER ISSUES
• Failure to get background checks for Members
  working with children or vulnerable populations
• Incomplete or non-existent evaluations (mid-
  year or final)
• Insufficient Member records (eligibility, I-9 not
  sufficient unless you also use passport/state
  birth certificate)
• Inadequate tracking of Member hours, hours
  on timesheets do not agree with hours entered
  into WBRS
Common Audit Findings

• ACCOUNTING & DOCUMENTATION
• Accounting records do not identify
  expenditures by grant or costs to run the
  grantee organization
• Costs claimed don’t line up with budgeted
  amounts
• Misclassification of Expenses (between budget
  categories)
• Lack of supporting documentation for required
  match
Records Retention

• Retain all financial records:
  – 3 years from date of final Federal
    Financial Report
  – If there is an on-going audit- 3 years
    from final audit resolution
Resources

• www.cncsig.gov
• FYI-Subscribe@cncsoig.gov
• http://www.americorps.gov/for_org
  anizations/manage/index.asp

				
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posted:9/11/2013
language:English
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