a-133 audit readiness
DESCRIPTION
(404) 874-0555 WPG-INC.COM. A-133 AUDIT READINESS. WELCOME. The Wesley Peachtree Group CERTIFIED PUBLIC ACCOUNTANTS. A-133 AUDIT READINESS. PRESENTED BY. Don K. Murphy, CPA. Keith X. Terrell, CPA. The Wesley Peachtree Group, CPAs. Introduction. The Wesley Peachtree Group, CPAs - PowerPoint PPT PresentationTRANSCRIPT
TheTheWesleyWesleyPeachtreePeachtreeGroupGroupCERTIFIED PUBLIC ACCOUNTANTSCERTIFIED PUBLIC ACCOUNTANTS
(404) 874-0555WPG-INC.COM
PRESENTEDPRESENTEDBY...BY...
The Wesley Peachtree Group, CPAs• Largest minority-owned firm in southeast• Specializes in higher education• Particular focus on HBCUs• Auditors of Title III Programs
• Topic—Improving A-133 Audit Preparedness• Takeaways—A Better Understanding of A-133
Requirements and the Audit Process
1.A-133 Compliance Requirements2.Selected Items Requested During the Audit3.Common Audit Compliance Deficiencies
Understanding OMB Circular A-133 Compliance Requirements
A - Activities Allowed or UnallowedB - Allowable Costs/Cost PrinciplesC - Cash ManagementD - Davis-Bacon ActE - EligibilityF - Equipment and Real Property ManagementG - Matching, Level of Effort, Earmarking
Understanding OMB Circular A-133 Compliance Requirements
H - Period of Availability of Federal FundsI - Procurement and Suspension and DebarmentJ - Program IncomeK - Real Property Acquisition Relocation Assistance
L - ReportingM - Sub-recipient MonitoringN - Special Tests and Provisions
A - Activities Allowed or Unallowed
• Unique to each Federal program• Grant specific
B - Allowable Costs/Cost Principles
• Three cost principles circulars1. OMB Circular A 87—“Cost Principles for State, ‑
Local, and Indian Tribal Governments” 2. OMB Circular A-21—“Cost Principles for
Educational Institutions” 3. OMB Circular A-122—“Cost Principles for Non-
Profit Organizations”
C - Cash Management
• Reimbursement basis• Advance basis• Rule of thumb
D - Davis-Bacon Act
• Construction and renovation contracts• Dollar threshold
F - Equipment and Real Property Management
• Tag• Track• Threshold
H - Period of Availability of Federal Funds
• Funding period• Extended period (no cost extension)
I - Procurement and Suspension and Debarment
• Procurement– Procurement procedures
• Suspension and Debarment– Covered transaction– Threshold– Government website link http://epls.arnet.gov
L - Reporting
• Financial Reporting• Performance Reporting• Special Reporting
• Summary• www.whitehouse.gov/omb/circulars_default• Questions
Selected Items Requested During the Audit & How They Are Utilized
Overview
Selected Items Requested During the Audit & How They Are Utilized
Schedule of Expenditures of Federal Awards
Selected Items Requested During the Audit & How They Are Utilized
Grant award notification with budgets and narratives (Compliance Requirements: All)
Selected Items Requested During the Audit & How They Are Utilized
Budget versus actual comparison pulled directly from the accounting system. (Compliance Requirement: A, B)
Selected Items Requested During the Audit & How They Are Utilized
Documentation supporting allocation of common costs. (Compliance Requirement: A, B)
Selected Items Requested During the Audit & How They Are Utilized
Schedule of salaries and fringes charged to Title III. (Compliance Requirement: A, B)
Selected Items Requested During the Audit & How They Are Utilized
Sample selection of disbursements determined by auditor (Compliance Requirements: A, B, F, H, I)
Selected Items Requested During the Audit & How They Are Utilized
Time and effort reports (Compliance Requirements: A, B, H)
Selected Items Requested During the Audit & How They Are Utilized
General ledger support for all cash drawdowns made during the year. (Compliance Requirements: C)
Selected Items Requested During the Audit & How They Are Utilized
Evidence of periodic monitoring of compliance with the Davis-Bacon Act. The dollar threshold for project qualifying under the Davis-Bacon Act is $2,000. (Compliance Requirements: D)
Selected Items Requested During the Audit & How They Are Utilized
All program reports submitted for performance, financial and special purposes. (Compliance Requirements: L)
Selected Items Requested During the Audit & How They Are Utilized
SummaryQuestions
Common Audit Compliance Deficiencies
Overview
Common Audit Compliance Deficiencies
Title III Director and Business Office personnel do not consistently and properly approve expenditures.
Common Audit Compliance Deficiencies
Time effort reporting is not maintained, properly approved or accurately allocated to salary expense.
Common Audit Compliance Deficiencies
Adequate documentation such as invoices, purchase orders and/or requisitions are not available to support expenditures.
Common Audit Compliance Deficiencies
Drawdowns are received in excess of three days of needs.
Common Audit Compliance Deficiencies
The $2,000 threshold under the Davis-Bacon is often overlooked.
Common Audit Compliance Deficiencies
Competitive bidding is not properly solicited and/or documented.
Common Audit Compliance Deficiencies
Due diligence is not performed and/or documented to verify vendor qualifications were compared to government databases for suspensions and debarments (http://epls.arnet.gov).
Common Audit Compliance Deficiencies
Annual performance and financial reports are not filed timely.
Common Audit Compliance Deficiencies
SummaryQuestions
Topic—Improving A-133 Audit Preparedness1. A-133 Compliance Requirements2. Selected Items Requested During the Audit 3. Common Audit Compliance Deficiencies
Takeaways—A Better Understanding of A-133 Requirements and the Audit ProcessContact us with any additional questions
Thank You!
Feedback•Evaluation Questionnaire – Tell us how we met your expectations
Follow-up •The Wesley Peachtree Group, CPAs
Office: (404) 874-0555– Don K. Murphy, CPA [email protected]– Keith X. Terrell, CPA [email protected]
•Also available in handouts.
Donald K. MurphyDonald K. Murphy Keith X. TerrellKeith X. [email protected]@wpg-inc.com [email protected]@wpg-inc.com
(404) 874-0555WPG-INC.COM