02_Monday_1030_The Auditors are coming

Report
The Auditors are coming!
The Auditors are coming!
NCURA Regions VI/VII
Denver, Colorado
April 3-6, 2011
Dorothy Yates
Associate Vice President
University of Wyoming
Jonnie Jenkins
Internal Auditor
University of Wyoming
Topics for Today

Types of Audits
Internal Audits
 Program site visits
 Property system reviews
 Office of Inspector General Audits
 Office of Inspector General
Investigations
 A-133 Audit

Internal Audits
“Friendly Audits”
 Can be a resource for problem areas
 Can really be a help in changing
processes and procedures

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Can “blame the auditors”
They work for the institution, not the
government
Program Site Visits
Typically done on larger federally
funded programs
 Programmatic review
 Process and procedural review
 Financial audit

NSF Desk Reviews

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Instituted in 2006 to enable NSF to gain
insights into awardees’ core award
administration policies, procedures, and
practices
Assess general management
environment, review selected accounting
and financial management policies and
procedures and obtain financial
information submitted by awardees
Conducted 340 over 5 years
Property System Reviews

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A property control system analysis (PCSA)
is a review of an institution's property
control system, performed to determine
whether it is capable of controlling,
protecting, preserving and maintaining
government property in its custody.
Office of Naval Research (ONR) performs
PCSAs at all institutions that are in custody
of government-titled property under awards
that have been delegated to ONR for
administration.
Inspector General Audits
Assess internal controls, financial
management, information
technology, and other systems that
affect the operation of federally
funded programs
 Occur periodically during a closeout, or an inconsistency in practices
is noticed, or because of a whistleblower, etc.

Inspector General Investigations
Differ from IG audits as to intensity
 No prior notice
 Generally come with subpoena in
hand
 Have badges and guns; Immediately
contact your legal counsel
 Typically a result of a whistle-blower

OMB Circular A-133 Audit
Your federal tax dollars at work
 Planned and expected
 Annual audit of federal expenditures

Allowability
 Allocability
 Consistency
 Cost-share
 Program income
 Etc, etc

Challenges

Changing audit environment
Auditors are being audited
 Audit guidance is changing more
frequently
 Stimulus funding

Preparing for an External Audit


Rule number 1: do not annoy the auditors
Where will you put them?

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Close enough for access, but outside of
where the day-to-day business occurs
Reasonable space for their work
Access to electronic systems
Access to physical files
If they are new to the institution, provide
parking maps, parking information,
restaurants, etc.
Preparing for an Audit
Appoint an audit liaison – a single
point of contact for the auditors
 Managing the audit - workplan
 Managing the auditors


Issues:
 Timing
 Requests
 Interruptions
 Response
times
Preparing for an Audit

Preparing yourself and your staff for
communicating with auditors
Read the audit guidance
 Be responsive
 Answer questions that are asked; be
guarded with external auditors but
open with internal auditors
 Provide materials requested
 Don’t offer information, don’t elaborate

What do the Auditors Want?
To be treated in a courteous and
professional manner
 A quiet place to work with computer
access
 Professional responses

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Audits are about control failures, not
individuals
Cooperation
What do the Auditors Want?
Well prepared – have workpapers,
etc. ready for review
 Key employees available
 Prompt responses
 Clear, concise, factual responses
 Auditees to be up-to-date on
regulatory requirements
 Organized files

What Annoys the Auditors?
Passive-aggressive behavior
 Resistance to cooperate
 “We’ve always done it this way”
 Unorganized files
 People too busy to talk to them
 Putting up roadblocks to change
 Defensiveness

What Annoys the Auditors
Deception
 Un-organized or unprepared clients
 Clients that don’t recognize the
audit as a priority
 Clients that don’t have a clue about
the regulations they are supposed
to follow
 Rudeness

The End
Questions?
Contact info:
dyates4@uwyo.edu
jjenki13@uwyo.edu

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