AGA Presentation Maine Department of Audit  Neria R. Douglass, JD, CIA, State Auditor April 10, 2007
Thank you <ul><li>As government accountants, you are responsible for the financial integrity of state government, an essen...
Mutual Respect <ul><li>The Maine Department of Audit reviews all of state government in a variety of roles and generally r...
Independence of Audit <ul><li>Independent, non-partisan agency  </li></ul><ul><li>Responsible to the Legislature as extern...
Audit Staff <ul><li>Institutional knowledge:   systems/financial history </li></ul><ul><li>Entire staff  310 years   servi...
Audit Staff Certifications <ul><li>8 Certified Public Accountants (CPA) </li></ul><ul><li>8 Certified Internal Auditors (C...
Continuing Professional Education <ul><li>Government Auditing Standards (GAS) require auditors to have 80 hours Continuing...
Our Work <ul><li>Financial statement audit for Comprehensive Annual Financial Report (CAFR) </li></ul><ul><li>Single Audit...
Our Work Continued <ul><li>We use audit standards with special meaning: </li></ul><ul><ul><li>Generally Accepted Governmen...
Financial Statement Audit Comprehensive Annual Financial Report (CAFR) <ul><ul><li>$6.1 Billion Revenues FY 2005 </li></ul...
Financial Audit <ul><li>Assignments </li></ul><ul><li>Over 35 financial statement audit assignments include: </li></ul><ul...
Single Audit <ul><li>Financial Report Compliance  </li></ul><ul><li>Report on Internal Control over Financial Reporting </...
Single Audit <ul><li>Audit examines the State’s financial statements, internal control systems and compliance with laws an...
Guidance (partial listing) <ul><li>Code of Federal Regulations </li></ul><ul><li>Catalog of Federal Domestic Assistance </...
Planning <ul><li>Federal programs  assigned to staff based on expertise, complexity of the programs, rotation of audit sta...
Risk Assessment <ul><li>A-133 formula establishes which Federal programs are audited </li></ul><ul><li>Type A programs – o...
Tools <ul><li>Accounting system data warehouse  (MFASIS)  </li></ul><ul><li>Specialized audit software for data mining and...
Testing <ul><li>Each relevant compliance area is tested using appropriate methods </li></ul><ul><li>Internal controls are ...
14 Compliance Areas <ul><li>allowed or unallowed  activities funded </li></ul><ul><li>allowable costs or cost principles  ...
14 Compliance Areas, Continued <ul><li>period of availability  of federal funds not exceeded </li></ul><ul><li>procurement...
Eligibility Testing <ul><li>If the program has eligibility requirements: </li></ul><ul><li>Understand the criteria  </li><...
Federal Cash Management <ul><li>Requirement - Minimize time between draw down of federal funds and the expenditure of the ...
Tests on Reporting <ul><li>Quarterly expenditure reports </li></ul><ul><li>Detail test report – verify number/formulas </l...
Tests on Sub-recipient Monitoring <ul><li>Did the contractors spend the federal money in accordance with program regulatio...
Results <ul><li>Test results show issues – we write findings and develop questioned costs </li></ul><ul><li>Findings conta...
Findings <ul><li>During the course of our audit we find areas that need improvement </li></ul><ul><li>This results in an a...
2005 Programs Audited <ul><li>Food Stamps; State Matching for Food Stamps; </li></ul><ul><li>Workforce Investment Act Adul...
2005 Programs Audited, Continued <ul><li>Performance Partnership Grants </li></ul><ul><li>Title I Grants to Local Educatio...
Agreed-upon Procedures <ul><li>Baxter State Park Authority   </li></ul><ul><li>Resulted in changes to procedures in the ar...
Agreed-upon Procedures <ul><li>Migrant Education Program </li></ul><ul><li>In response to a joint request from the U.S. De...
Other Recent Audit Procedures <ul><li>Automated Client Eligibility System (ACES) </li></ul><ul><li>Purchasing card transac...
Municipal Outreach Program <ul><li>• R equest from Joint Standing Committee on State and Local Government to address munic...
Preparing for Audit <ul><li>The Department  of Audit assures that government is accountable and that taxes paid by the cit...
CONCLUSION <ul><li>Taking care of our citizen’s tax payments, both state and federal, is important work.  Let’s continue w...
Upcoming SlideShare
Loading in …5
×

AGA Presentation Maine Department of Audit

569 views
514 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
569
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • There are over 35 financial statement audit assignments, some examples are: Cash (and cash equivalents), Component Units, Tax revenues and receivables, Leases, Interfund Transactions For a large portion of these assignments, the state takes the necessary steps to ensure that they are reporting in accordance with GAAP, sometimes however, there are material adjustments as a result of our audits. The amount of work for a particular assignment is not always evident in the planning phases. There are times, because of changes in standards or staffing, that there are holes in the controller’s work product. It has been our policy to not take the easy way out in these instances. There are specific instances where we have audited balances and suggested adjusting journal entries instead of qualifying the report. We look to qualify the report only as a last resort. In many instances, the research conducted by the department of audit is utilized by the state to produce a better work product. One example of this was the report qualification for FY2001 and prior because the classification and valuation of capital leases. Leases are reported either as rental type transaction or a purchase type transaction. When leases take the form of a purchase transaction, the value of the asset along with depreciation is reported in the financial statements. During FY2002 we were able to utilize third parties to substantiate the fair market values of the lease listing prepared by the state. Additionally, we researched several issues and applied the results of that research to the classification tool utilized by the state. Based on this work we were able to substantiate the balances and offer an audit adjustment that was instrumental in clearing the report qualification.
  • We follow the guidance is OMB circulars, Code of Federal Regulations and other program specific regulations
  • The federal government established 14 areas of significant interest (not all apply to each federal program) The more common requirements include Allowable costs, cash management, eligibility, matching, reporting and subrecipient monitoring. [Activities Allowed or Unallowed, Allowable costs/Cost Principles Cash Management, Davis-Bacon Act, Eligibility, Equipment and Real property, Matching/Level of Effort/Earmarking, Period of Availability, Procurement and Suspension and Debarment, Program Income, Real Property Acquisition, Reporting, Sub Monitoring and Special Tests] Definitions: A journal voucher is used internally to move funds, expenditures or revenue between accounts. An external interface payment is a payment that originated on a computer system other than the state’s accounting system (known as MFASIS) and then electronically sent to MFASIS for the purpose of cutting a check and recording the transaction. Example: MeCMS is the most well-known external interface system.
  • Following the formula outlined in circular A-133, all the federal programs are divided into two groups Type A – over a certain dollar threshold Type B – remainder We make an assessment of the Type A federal programs to determine which programs have a high risk of non-compliance. Risk factors include current or prior audit experience, inherent risk of the program, federal government oversight. Type A programs that are deemed high risk are audited. We have the option of substituting a high risk Type B program for a low risk Type A program The programs selected for audit are known as major federal programs. [ii) $3 million or three-tenths of one percent (.003) of total Federal awards expended in the case of an auditee for which total Federal awards expended exceed $100 million but are less than or equal to $10 billion. ]
  • The data warehouse provides us with large amounts of data that we use for further testing. The specialized audit software also allows us to import agency data that is not on MFASIS in order to conduct additional testing.
  • Agency management is responsible for establishing and maintaining effective internal control over compliance with the laws, regulations, contracts and grants. Our job is to assess the effectiveness of the established controls and provide a report of that compliance. For example, management is required to submit financial reports that are complete and accurate. One program developed a template, but the staff person was not adequately trained and the completed report was not reviewed timely by the responsible supervisor. Even though the written polices are good, the result is that the report is incorrect and submitted late even though the proper controls were in place. The controls were not operating effectively. We are responsible for expressing an opinion on the State’s compliance of laws, regulations, contracts and grants applicable to EACH of the major federal programs. If federal law says that the state is supposed to match 25% of a program’s costs, we review the accounts to verify that 25% of the program’s funding came from the general fund AND was not used by another federal program as their matching funds. When the state uses a computer system to process payments or determine eligibility for a federal program, we have to learn about the system in order to determine that the internal controls are sufficient to ensure compliance with the objective.
  • Eligibility is another compliance area that is often required to be tested. For example: the Medicaid eligibility requirements binder is 4” thick. The computer system is reviewed for General controls – examples include: policies and procedures for daily operations, staff skills, backup power supply, physical security The computer system is also reviewed for Application controls – “What can go wrong?” leads to “How does the software control these risks?” such as validation of edits, software access, change controls, error and exception reports.
  • A common compliance area that we test is federal cash management. This compliance area is often misunderstood. We test that the federal program minimizes the amount of time that the state keeps federal cash on hand. For example: The state is awarded a $10 million grant. The state is NOT allowed to ask the federal treasury for $10 million all at once. [If the states request more money than they need, the federal government needs to issue additional Treasury bills and pay interest on that money. This compliance area is designed to prevent penalties - federal programs subject to the annual Treasury contract that hold federal cash on hand for too long are required to pay interest to the federal government using ONLY state funds.]
  • The major programs all have some sort of reporting requirement . Most are expenditure reports. We have had numerous findings in this compliance area. This audit area often requires extensive audit work because of inconsistencies in the reports from quarter to quarter. We have found instances where expenditures have been over-reported – perhaps claimed twice. We have also found instances that the department did not claim all the expenditures for which they were allowed – which entitles the State to additional federal revenue when discovered.
  • The federal program regulations often require sub-recipient monitoring. If an agency issues a contract to a company to provide some services of the program, the agency is supposed to monitor that company to make sure that company follows the federal program regulations. For example, there is a federal program titled the Child and Adult Care Food program. This program provides funds to child and adult non-residential care centers for food. The state uses some non-profit organizations to distribute funds. However, the state is responsible to ensure that the money actually bought food for the target population, so the state needs to review the non-profits. This particular program did not conduct the reviews as required. See finding # 05-46.
  • Results of the Internal control testing and the compliance testing support the “Report on Compliance with requirements applicable to each federal program and on internal control over compliance in accordance with OMB Circular A-133 as well as the opinion on the Schedule of Expenditures of Federal Awards. Our findings are also included in the Single Audit report and in the Schedule of Findings and Questioned Costs. The Agency that administers the federal program has the responsibility to take corrective action on the findings of that program. We consult with those that follow up on our findings. Thank you for the opportunity to present this information. We would be happy to answer questions relating to our presentation.
  • During the course of our audit we find areas that need improvement, many times this results in an audit finding. Some are resolved as a verbal comment while others are reported out in the management letter. The more serious deficiencies are included in the report as reportable conditions and in the most serious cases, material weaknesses. The financial statement findings are included in the schedule of findings and questioned costs in the single audit report. It is important to point out that not all areas that need improvement will show up as a finding. Many times as we research items we will share this research with the agency under audit so they can work towards compliance and hopefully put out a better product. This information sharing also goes on with items that are being developed into findings. We find this beneficial in order for us to get concurrence on the finding and to expedite the agency’s correction of the problem. It is not uncommon for the agency to have the issue resolved prior to the conclusion of our audit. One example of this happened during a control review of petty cash accounts. Deficiencies found during this interim control work resulted in the timely issuance of a controller’s bulletin addressing the deficiency. reportable condition defined on page 82 of yellow book material weakness defined on page 84 of yellow book
  • AGA Presentation Maine Department of Audit

    1. 1. AGA Presentation Maine Department of Audit Neria R. Douglass, JD, CIA, State Auditor April 10, 2007
    2. 2. Thank you <ul><li>As government accountants, you are responsible for the financial integrity of state government, an essential element of good government. You provide fiscal responsibility to all of us as citizens. </li></ul>
    3. 3. Mutual Respect <ul><li>The Maine Department of Audit reviews all of state government in a variety of roles and generally reports exceptions alone. I am working to find ways to report the good news too, the many transactions you process day after day, year after year. </li></ul>
    4. 4. Independence of Audit <ul><li>Independent, non-partisan agency </li></ul><ul><li>Responsible to the Legislature as external auditors </li></ul><ul><li>Statutory power to audit (5 MRSA 241 et seq. ) </li></ul><ul><ul><li>all accounts of state government </li></ul></ul><ul><ul><li>except Governor’s expense account </li></ul></ul><ul><ul><li>including judiciary </li></ul></ul><ul><ul><li>any entity receiving state grants </li></ul></ul><ul><ul><li>review and study expenditures of the dedicated funds of independent boards and commissions </li></ul></ul><ul><li>May serve Legislature, its committees, or Governor investigating State's finances, or as directed </li></ul>
    5. 5. Audit Staff <ul><li>Institutional knowledge: systems/financial history </li></ul><ul><li>Entire staff 310 years service </li></ul><ul><li>Audit work saves costs if additional federal funds may be claimed </li></ul><ul><li>Our work prevents future questioned costs </li></ul><ul><li>Audit Bureau </li></ul><ul><ul><li>28 Auditors </li></ul></ul><ul><ul><ul><li>1 Municipal Outreach </li></ul></ul></ul><ul><ul><li>1 Business Manager </li></ul></ul><ul><ul><li>1 Administrative Assistant </li></ul></ul><ul><li>Unorganized Territory </li></ul><ul><ul><li>Fiscal Administrator </li></ul></ul><ul><ul><li>1 Clerk </li></ul></ul>
    6. 6. Audit Staff Certifications <ul><li>8 Certified Public Accountants (CPA) </li></ul><ul><li>8 Certified Internal Auditors (CIA) </li></ul><ul><li>3 Certified Information Systems Auditors (CISA) </li></ul><ul><li>1 Certified Fraud Examiner (CFE) </li></ul><ul><li>1 Doctor of Jurisprudence (JD) </li></ul><ul><li>5 Masters of Business Administration (MBA) </li></ul><ul><li>2 other advanced degrees--Masters in Accounting </li></ul>
    7. 7. Continuing Professional Education <ul><li>Government Auditing Standards (GAS) require auditors to have 80 hours Continuing Professional Education (CPE) every 2 years </li></ul><ul><li>At least 24 of 80 hours must be related to government auditing </li></ul><ul><li>At least 20 of 80 hours must be completed in each year </li></ul><ul><li>Peer review by other state auditors every 3 years </li></ul>
    8. 8. Our Work <ul><li>Financial statement audit for Comprehensive Annual Financial Report (CAFR) </li></ul><ul><li>Single Audit </li></ul><ul><ul><li>Tests of compliance on financials </li></ul></ul><ul><ul><li>Report on internal financial control </li></ul></ul><ul><ul><li>Program compliance </li></ul></ul><ul><ul><li>Internal control over compliance </li></ul></ul><ul><li>Other audits, agreed upon procedures </li></ul>
    9. 9. Our Work Continued <ul><li>We use audit standards with special meaning: </li></ul><ul><ul><li>Generally Accepted Government Audit Standards (GAGAS) in the United States of America = Government Auditing Standards (GAS) (Yellow Book) </li></ul></ul><ul><ul><li>Office of Management & Budget (OMB) Circular A-133 Audits of States, Local Governments and Non-Profit Organizations </li></ul></ul><ul><ul><li>We audit the evidence supporting the amounts and disclosures in the financial statements on a test basis. </li></ul></ul><ul><ul><li>Our compliance work is test based. We also perform analytical review and utilize data-mining techniques. </li></ul></ul><ul><ul><li>Our findings are exceptions to these standards because of quantity or quality </li></ul></ul>
    10. 10. Financial Statement Audit Comprehensive Annual Financial Report (CAFR) <ul><ul><li>$6.1 Billion Revenues FY 2005 </li></ul></ul><ul><ul><li>$5.9 Billion Expenses FY 2005 </li></ul></ul><ul><ul><li>Business-type activities </li></ul></ul><ul><ul><ul><li>$406 Million revenues </li></ul></ul></ul><ul><ul><ul><li>$353 Million expenses </li></ul></ul></ul><ul><ul><li>$3.5 Billion Capital Assets </li></ul></ul><ul><ul><li>Each major fund </li></ul></ul><ul><ul><ul><li>General Fund, Highway Fund, Federal Funds </li></ul></ul></ul><ul><ul><ul><li>Special Revenue Funds, governmental funds </li></ul></ul></ul><ul><ul><li>Presentation of Component Unit finances </li></ul></ul><ul><ul><li>More: internal funds, bonds </li></ul></ul>
    11. 11. Financial Audit <ul><li>Assignments </li></ul><ul><li>Over 35 financial statement audit assignments include: </li></ul><ul><li>Cash (and cash equivalents) </li></ul><ul><li>Component Units </li></ul><ul><li>Tax revenues and receivables </li></ul><ul><li>Leases </li></ul><ul><li>Interfund Transactions </li></ul><ul><li>Test Account Balances/Activity </li></ul><ul><li>Generally Accepted Accounting Principles “GAAP” presentation </li></ul><ul><li>We test </li></ul><ul><ul><li>day to day activity in MFASIS </li></ul></ul><ul><ul><li>Controller adjusting entries in CAFR 2000 </li></ul></ul><ul><ul><li>accounts rolling up to financial statements </li></ul></ul><ul><li>We propose audit adjustments for items that do not meet GAAP criteria </li></ul><ul><li>The controller’s work plus our audit adjustments roll up into fairly presented financial statements </li></ul>
    12. 12. Single Audit <ul><li>Financial Report Compliance </li></ul><ul><li>Report on Internal Control over Financial Reporting </li></ul><ul><li>Compliance with Program Requirements </li></ul><ul><li>Report on Internal Control over Compliance with Requirements </li></ul><ul><li>http://www.maine.gov/audit/reports.htm </li></ul>
    13. 13. Single Audit <ul><li>Audit examines the State’s financial statements, internal control systems and compliance with laws and regulations. </li></ul><ul><li>Each federal program has a separate opinion. </li></ul><ul><li>Medicaid is audited every year. We will report on 25 to 28 individual federal programs or program clusters each year. </li></ul><ul><li>Department of Audit work qualifies the state to receive over $2.7 Billion (FY 2007) in federal assistance for specific grants and programs. Audited programs comprise 91% of that amount. </li></ul>
    14. 14. Guidance (partial listing) <ul><li>Code of Federal Regulations </li></ul><ul><li>Catalog of Federal Domestic Assistance </li></ul><ul><li>Federal Office of Management and Budget circulars (A-87, A-133) </li></ul><ul><li>Additional or supplemental program specific requirements </li></ul>
    15. 15. Planning <ul><li>Federal programs assigned to staff based on expertise, complexity of the programs, rotation of audit staff </li></ul><ul><li>Upon receipt of assignment, staff researches the federal program to determine its objectives and how met </li></ul><ul><li>Determine which of the 14 compliance areas apply </li></ul><ul><li>Review significant contracts </li></ul><ul><li>Review accounting transactions (journal vouchers, payment vouchers, cash receipts and external interface payments) </li></ul>
    16. 16. Risk Assessment <ul><li>A-133 formula establishes which Federal programs are audited </li></ul><ul><li>Type A programs – over certain dollar threshold </li></ul><ul><li>Type B programs - remainder </li></ul><ul><li>Assessment of risk of non-compliance </li></ul>
    17. 17. Tools <ul><li>Accounting system data warehouse (MFASIS) </li></ul><ul><li>Specialized audit software for data mining and sample selection </li></ul><ul><li>Federal Payment Management System </li></ul><ul><li>Treasury’s cash receipt system </li></ul><ul><li>Division of Purchases scanned contracts </li></ul><ul><li>Journal vouchers and payment vouchers </li></ul>
    18. 18. Testing <ul><li>Each relevant compliance area is tested using appropriate methods </li></ul><ul><li>Internal controls are reviewed to ensure they are sufficient and to ensure that they are actually working </li></ul><ul><li>SAS 99 requires inquiry about fraud below management level </li></ul>
    19. 19. 14 Compliance Areas <ul><li>allowed or unallowed activities funded </li></ul><ul><li>allowable costs or cost principles followed </li></ul><ul><li>Cash Management Act compliance met </li></ul><ul><li>Davis-Bacon Act requirements followed </li></ul><ul><li>eligibility for participation properly determined </li></ul><ul><li>property or equipment used for authorized purposes </li></ul><ul><li>State matching, level of effort, and earmarking proper </li></ul>
    20. 20. 14 Compliance Areas, Continued <ul><li>period of availability of federal funds not exceeded </li></ul><ul><li>procurement and debarment rules followed </li></ul><ul><li>program income in compliance </li></ul><ul><li>real property acquisition/relocation assistance requirements met </li></ul><ul><li>reporting proper, timely and as required </li></ul><ul><li>subrecipients monitored on pass-through funds </li></ul><ul><li>special tests and provisions unique to certain programs are met </li></ul>
    21. 21. Eligibility Testing <ul><li>If the program has eligibility requirements: </li></ul><ul><li>Understand the criteria </li></ul><ul><li>Determine if eligibility is calculated manually or electronically </li></ul><ul><li>If electronically, evaluate computer system </li></ul><ul><li>Apply the criteria to a sample of the population to confirm eligibility </li></ul>
    22. 22. Federal Cash Management <ul><li>Requirement - Minimize time between draw down of federal funds and the expenditure of the federal funds </li></ul><ul><li>Largest federal programs have to comply with the federal Treasury State agreement negotiated annually </li></ul><ul><li>General set of rules for the remainder of programs to draw down funds </li></ul><ul><li>Compliance area is often misunderstood </li></ul>
    23. 23. Tests on Reporting <ul><li>Quarterly expenditure reports </li></ul><ul><li>Detail test report – verify number/formulas </li></ul><ul><li>Some of the reporting requirements are quite complex – multiple worksheets are needed to support the quarterly report </li></ul><ul><li>Inconsistencies from quarter to quarter </li></ul><ul><li>Found under-reported expenditures </li></ul><ul><li>Found over-reported expenditures </li></ul>
    24. 24. Tests on Sub-recipient Monitoring <ul><li>Did the contractors spend the federal money in accordance with program regulations? </li></ul><ul><li>Reviews by agency staff to ensure that funds were spent as intended </li></ul>
    25. 25. Results <ul><li>Test results show issues – we write findings and develop questioned costs </li></ul><ul><li>Findings contain our recommendations for improvement </li></ul><ul><li>Agency has responsibility to take corrective action </li></ul><ul><li>Several of our findings have led to further reviews by the federal Inspector Generals, Federal Office of Audit Resolution, OPEGA </li></ul>
    26. 26. Findings <ul><li>During the course of our audit we find areas that need improvement </li></ul><ul><li>This results in an audit finding </li></ul><ul><li>Some are resolved as a verbal comment </li></ul><ul><li>Some are reported out in the management letter </li></ul><ul><li>Serious deficiencies are included in the report as reportable conditions and in the most serious cases, material weaknesses </li></ul>
    27. 27. 2005 Programs Audited <ul><li>Food Stamps; State Matching for Food Stamps; </li></ul><ul><li>Workforce Investment Act Adult Program; WIA Youth Activities; WIA Dislocated Workers; </li></ul><ul><li>Special Education Grants; Special Education Preschool Grants; </li></ul><ul><li>Child Care and Development Block Grant; Child Care Matching; </li></ul><ul><li>Women, Infants and Children grant </li></ul><ul><li>Child and Adult Care Food Program </li></ul><ul><li>National Guard Military Operations Maintenance Projects </li></ul><ul><li>Readiness, Sustainment Maintenance Center (Loring Rebuild) </li></ul><ul><li>Community Development Block Grants/State’s ProgramsUnemployment Insurance </li></ul><ul><li>Trade Adjustment Assistance-Workers </li></ul><ul><li>Highway Planning and Construction </li></ul>
    28. 28. 2005 Programs Audited, Continued <ul><li>Performance Partnership Grants </li></ul><ul><li>Title I Grants to Local Educational Agencies </li></ul><ul><li>Rehabilitation Services - Voc Rehab Grants </li></ul><ul><li>Twenty-First Century Community Learning Centers </li></ul><ul><li>Improving Teacher Quality State Grants </li></ul><ul><li>Immunization Grants </li></ul><ul><li>Temporary Assistance for Needy Families </li></ul><ul><li>Child Support Enforcement </li></ul><ul><li>Foster Care - Title IV-E </li></ul><ul><li>Adoption Assistance </li></ul><ul><li>Social Services Block Grant </li></ul><ul><li>Homeland Security Grant Program. </li></ul>
    29. 29. Agreed-upon Procedures <ul><li>Baxter State Park Authority </li></ul><ul><li>Resulted in changes to procedures in the areas of – </li></ul><ul><li>cash deposits to banks </li></ul><ul><li>accounting for cash receipts </li></ul><ul><li>access to computer systems </li></ul><ul><li>inventory control </li></ul><ul><li>Capital Riverfront Improvement District </li></ul><ul><li>Performed tests relating to – </li></ul><ul><li>bank account reconciliations </li></ul><ul><li>authorized check signers </li></ul><ul><li>cash transfers </li></ul><ul><li>State and Local Government Committee Report </li></ul>
    30. 30. Agreed-upon Procedures <ul><li>Migrant Education Program </li></ul><ul><li>In response to a joint request from the U.S. Department of Education, and the Maine Department of Education we performed tests on procedures used to re-determine eligibility for the Maine Migrant Education Program. </li></ul><ul><li>Maine Science and Technology Foundation </li></ul><ul><li>Performed analyses that showed substantial unused cash in the Maine Science and Technology Foundation </li></ul><ul><li>Workers’ Compensation Board </li></ul><ul><li>For several years we have annually performed tests of compensation rates included on weekly benefit compensation tables </li></ul>
    31. 31. Other Recent Audit Procedures <ul><li>Automated Client Eligibility System (ACES) </li></ul><ul><li>Purchasing card transactions (45,000) </li></ul><ul><li>State-wide petty cash and cash accounts </li></ul><ul><li>Accounts at Department of Agriculture </li></ul>
    32. 32. Municipal Outreach Program <ul><li>• R equest from Joint Standing Committee on State and Local Government to address municipal excise tax fraud </li></ul><ul><li>Developed educational program strengthen internal controls over cash </li></ul><ul><li>Performed on-site observations of approximately 300 municipalities in the State and </li></ul><ul><li>- issued reports with recommendations for improvements </li></ul><ul><li>- tested and reported on compliance of selected State statutes </li></ul><ul><li>- tested excise tax collections & reporting, found one fraud </li></ul><ul><li>Legislature requests: </li></ul><ul><ul><li>analyzed municipal financial reports re U.S. Census info LD900 </li></ul></ul><ul><ul><li>helped establish uniform chart of accounts for government entities LD1713, LD 214 </li></ul></ul>
    33. 33. Preparing for Audit <ul><li>The Department of Audit assures that government is accountable and that taxes paid by the citizens of the State of Maine are spent legally, recorded properly, and reported fairly. </li></ul><ul><li>Keep good records </li></ul><ul><li>Remember 14 compliance requirements </li></ul>
    34. 34. CONCLUSION <ul><li>Taking care of our citizen’s tax payments, both state and federal, is important work. Let’s continue working together to do the best job possible. </li></ul>

    ×