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
![Page 1: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/1.jpg)
TheTheWesleyWesleyPeachtreePeachtreeGroupGroupCERTIFIED PUBLIC ACCOUNTANTSCERTIFIED PUBLIC ACCOUNTANTS
(404) 874-0555WPG-INC.COM
![Page 2: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/2.jpg)
PRESENTEDPRESENTEDBY...BY...
![Page 3: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/3.jpg)
The Wesley Peachtree Group, CPAs• Largest minority-owned firm in southeast• Specializes in higher education• Particular focus on HBCUs• Auditors of Title III Programs
![Page 4: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/4.jpg)
• Topic—Improving A-133 Audit Preparedness• Takeaways—A Better Understanding of A-133
Requirements and the Audit Process
![Page 5: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/5.jpg)
1.A-133 Compliance Requirements2.Selected Items Requested During the Audit3.Common Audit Compliance Deficiencies
![Page 6: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/6.jpg)
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
![Page 7: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/7.jpg)
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
![Page 8: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/8.jpg)
A - Activities Allowed or Unallowed
• Unique to each Federal program• Grant specific
![Page 9: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/9.jpg)
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”
![Page 10: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/10.jpg)
C - Cash Management
• Reimbursement basis• Advance basis• Rule of thumb
![Page 11: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/11.jpg)
D - Davis-Bacon Act
• Construction and renovation contracts• Dollar threshold
![Page 12: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/12.jpg)
F - Equipment and Real Property Management
• Tag• Track• Threshold
![Page 13: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/13.jpg)
H - Period of Availability of Federal Funds
• Funding period• Extended period (no cost extension)
![Page 14: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/14.jpg)
I - Procurement and Suspension and Debarment
• Procurement– Procurement procedures
• Suspension and Debarment– Covered transaction– Threshold– Government website link http://epls.arnet.gov
![Page 15: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/15.jpg)
L - Reporting
• Financial Reporting• Performance Reporting• Special Reporting
![Page 16: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/16.jpg)
• Summary• www.whitehouse.gov/omb/circulars_default• Questions
![Page 17: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/17.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Overview
![Page 18: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/18.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Schedule of Expenditures of Federal Awards
![Page 19: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/19.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Grant award notification with budgets and narratives (Compliance Requirements: All)
![Page 20: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/20.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Budget versus actual comparison pulled directly from the accounting system. (Compliance Requirement: A, B)
![Page 21: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/21.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Documentation supporting allocation of common costs. (Compliance Requirement: A, B)
![Page 22: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/22.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Schedule of salaries and fringes charged to Title III. (Compliance Requirement: A, B)
![Page 23: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/23.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Sample selection of disbursements determined by auditor (Compliance Requirements: A, B, F, H, I)
![Page 24: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/24.jpg)
Selected Items Requested During the Audit & How They Are Utilized
Time and effort reports (Compliance Requirements: A, B, H)
![Page 25: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/25.jpg)
Selected Items Requested During the Audit & How They Are Utilized
General ledger support for all cash drawdowns made during the year. (Compliance Requirements: C)
![Page 26: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/26.jpg)
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)
![Page 27: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/27.jpg)
Selected Items Requested During the Audit & How They Are Utilized
All program reports submitted for performance, financial and special purposes. (Compliance Requirements: L)
![Page 28: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/28.jpg)
Selected Items Requested During the Audit & How They Are Utilized
SummaryQuestions
![Page 29: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/29.jpg)
Common Audit Compliance Deficiencies
Overview
![Page 30: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/30.jpg)
Common Audit Compliance Deficiencies
Title III Director and Business Office personnel do not consistently and properly approve expenditures.
![Page 31: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/31.jpg)
Common Audit Compliance Deficiencies
Time effort reporting is not maintained, properly approved or accurately allocated to salary expense.
![Page 32: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/32.jpg)
Common Audit Compliance Deficiencies
Adequate documentation such as invoices, purchase orders and/or requisitions are not available to support expenditures.
![Page 33: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/33.jpg)
Common Audit Compliance Deficiencies
Drawdowns are received in excess of three days of needs.
![Page 34: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/34.jpg)
Common Audit Compliance Deficiencies
The $2,000 threshold under the Davis-Bacon is often overlooked.
![Page 35: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/35.jpg)
Common Audit Compliance Deficiencies
Competitive bidding is not properly solicited and/or documented.
![Page 36: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/36.jpg)
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).
![Page 37: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/37.jpg)
Common Audit Compliance Deficiencies
Annual performance and financial reports are not filed timely.
![Page 38: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/38.jpg)
Common Audit Compliance Deficiencies
SummaryQuestions
![Page 39: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/39.jpg)
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
![Page 40: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/40.jpg)
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.
![Page 41: A-133 AUDIT READINESS](https://reader035.vdocuments.site/reader035/viewer/2022062304/56812fcd550346895d954cc6/html5/thumbnails/41.jpg)
Donald K. MurphyDonald K. Murphy Keith X. TerrellKeith X. [email protected]@wpg-inc.com [email protected]@wpg-inc.com
(404) 874-0555WPG-INC.COM