budgetary controls and linking budgetary and proprietary control testing
TRANSCRIPT
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Budgetary Controls Budgetary Controls andand Linking Budgetary Linking Budgetary
and Proprietary and Proprietary Control TestingControl Testing
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Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Budgetary and
Proprietary Control TestingProprietary Control Testing
Background
Risks And Control Objectives
Testing
Overview
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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
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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
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Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control
TestingTesting
Now For The Rest of The Statement
Risks
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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
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Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control
TestingTesting
Obligations Incurred
Unobligated Balances
Risks – Status of Resources
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Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control
TestingTesting
Obligated Balances, Net EFY
Offsetting Receipts
Risks - Outlays
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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
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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
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Budgetary Controls andBudgetary Controls and Linking Linking Budgetary and Proprietary Control Budgetary and Proprietary Control
TestingTesting
Eric Eisenstein
Linking
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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
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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
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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