budgetary controls and linking budgetary and proprietary control testing

Budgetary Controls Budgetary Controls andand Linking Budgetary Linking Budgetary

and Proprietary and Proprietary Control TestingControl Testing

2

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Budgetary and

Proprietary Control TestingProprietary Control Testing

Background

Risks And Control Objectives

Testing

Overview

3

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

The Statement of Budgetary Resources

Objectives

NASA Error

Background

4

Budget authority could be misstated or recorded in the wrong accounts, resulting in obligations in excess of resources, or obligations are less than what is available

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Risks Risk

Assertions

Example – Budget Authority

Existence – Budget authority is available and recorded in the right account

Completeness – ALL budget authority was recorded properly

5

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Now For The Rest of The Statement

Risks

6

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Budget Authority

Unobligated Balances, Beginning of Period

Spending Authority From Offsetting Collections

Recoveries

Not Available

Risks - Resources

7

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Obligations Incurred

Unobligated Balances

Risks – Status of Resources

8

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Obligated Balances, Net EFY

Offsetting Receipts

Risks - Outlays

9

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Document The Process

Flowchart

Identify Key Controls

Test The Controls

Testing

10

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Now, The Part You Have all

Been Waiting For!!!

Linking

11

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Eric Eisenstein

Linking

12

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

To maximize effectiveness and efficiency, tests of budgetary and proprietary accounts should be

combined when interrelationships exist.

Linking

13

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Must Understand Interrelationships

Must Document the Relationship

Must Document How the Proprietary Test Provides Assurance About the Budgetary Line

Linking

14

Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control

TestingTesting

Controls Over Outlays May Linked With Disbursement Controls

Accounts Payable And Disbursement Controls May Be Linked To Controls Over UDO’s

Controls over the Spending Authority From Offsetting Collections May be Linked To Revenue Testing

Examples