1. Tuesday – April 22, 2014
6 CITYPLACE DR, SUITE 900│ ST. LOUIS, MISSOURI 63141│ 314.983.1200
1520 S. FIFTH ST., SUITE 309 │ ST. CHARLES, MISSOURI 63303 │ 636.255.3000
2220 S. STATE ROUTE 157, STE. 300 │ GLEN CARBON, ILLINOIS 62034 │ 618.654.3100
Ron Steinkamp
314.983.1238
rsteinkamp@bswllc.com
Government Risk Briefing

2. • Introductions
• Top 10 Steps to Audit Excellence – State Auditor
• Discussion on the 10 Steps
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Government Financial Audit Discussion

3. • Name
• Organization
• Title
• What do you hope to learn today?
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Introductions

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Top 10 Steps to Audit Excellence
• Missouri State Auditor
• Video Presentation
http://www.youtube.com/watch?feature=player_d
etailpage&v=l7BBElMy3XA

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# 10 - Cooperate
• Provide auditors with requested data.
• Respond to citizens’ inquiries promptly and appropriately.
• Failure to cooperate = suspicious auditors.

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# 9 – Respect Public Assets
• Manage and protect physical assets:
 Asset tags.
 Regular inventories.
 Monitor vehicle use.
• Protect monetary assets:
 Protect financial health.
 Maintain bond rating.
 Avoid excessive debt.
 Spend responsibly.
 Establish policies with reasonable limits to guide spending
decisions.
 Do not reimburse unallowable, excessive or undocumented
expenses.
 Monitor government issued credit cards.
 Conduct adequate reviews and reconciliations and require
supporting documentation.

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# 8 – Follow Personnel Policies
• Establish and document personnel and payroll policies.
• Monitor payroll for “mystery employees”
• Ensure timesheets approved by employee and supervisor.
• Abide by leave balance maximums and watch for negative balances.
• Ensure overtime and compensatory time is approved in advance and
monitored.
• Avoid the appearance of nepotism.
• No extra compensation for normal work or severance in disguise.

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# 7 – Carefully Plan and Monitor Projects
• Plan at beginning to prevent cost overruns, inefficiencies and
performance problems.
• Be aware of financing terms.
• Do not borrow or buy to soon.
• Learn technical facts before starting.
• Document decisions made.
• Ensure appropriate price.
• Monitor and document completion of each milestone or contract
requirement.
• Ensure audit clause in any contract and audit as necessary.

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# 6 – Use Good Procurement Practices
• Establish and document procurement policies and procedures.
• Bid contracts.
• Beware of conflicts of interest and related parties.
• Manage scope changes.
• Ensure audit clause in any contract and audit as necessary.

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# 5 – Develop and Execute Budgets Properly
• Ensure budgets are complete and contain all required elements.
• Document formal approval of budgets.
• Do not deficit budget.
• Compare actuals to budget regularly so proper adjustments can be made.
• Ensure budget amendments are formally approved.
• Set taxes and fees at legal and justifiable rates.

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# 4 – Abide by Sunshine Laws
• Missouri’s Sunshine Laws guarantee citizens access to public meetings,
records, votes, actions and deliberations.
• Presume all public entity meetings are open.
• When necessary, close meetings properly:
 Include closed meeting on agenda.
 Start in open meeting and document vote to close.
 Limit closed meetings to topics allowed by law.
• Maintain minutes.
• Adopt a Sunshine policy.

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# 3a – Use Strict Receipting Practices
• Develop receipting policies and procedures.
• Segregate duties.
• Document method of payment and immediately issue receipts.
• Reconcile daily receipts to deposits.
• Secure monies and restrictively endorse checks immediately.
• Reconcile bank accounts.
• Conduct surprise cash counts.

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# 3b – Use Strict Disbursement Practices
• Develop disbursement policies and procedures.
• Segregate duties.
• Obtain proper approval of disbursements.
• Maintain adequate supporting documents for disbursements.
• Reconcile bank accounts.
• Consider positive pay.
• Maintain, monitor and review master vendor file.

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# 2 – Preserve Information
• Maintain required records.
• File all required reports.
• Prepare for problems = implement and follow a data recovery plan as part
of a broader disaster recovery plan.
• Implement and follow a clear and lawful document destruction policy.

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# 1 – Watch Out For Criminals
• Implement and monitor accounting controls to help prevent and detect
theft.
• Be aware of issues that could cause an otherwise good person to steal.
• Watch for Red Flags of Fraud (Pressure, Opportunity, Rationalization):

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Questions/Answers