top five issues discovered in government audits presented by: adam mccane
TRANSCRIPT
Top Five Issues Discovered In Government Audits
Presented by: Adam McCane
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• Internal controls
• Capital assets/expenditures
• Net position/fund balance
• Balance sheet “stuff”
• Address prior year issues
• Questions
Outline
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• Failure to adequately document significant processes and policies
• Too many “exceptions” to the policies, that aren’t documented
• Failure to re-evaluate documented policies and processes after system changes
Internal controls
4
• Fixed asset details/sub-ledgers that don’t reconcile to the general ledger
• Failure to reconcile capital expenditure accounts to fixed asset ledger
Capital assets/expenditures
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• No adopted fund balance policy consistent w/ GASB 54
• Not adequately identifying committed and assigned funds/sources
• Not properly calculating net investment in capital assets
Net position/fund balance
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• Unreconciled miscellaneous balance sheet accounts
• Failure to adequately accrue receivables/payables into the proper reporting period
• Accounting staff not communicating w/ other departments for non-cash transactions
Balance sheet “stuff”
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• Improper entry of PY audit adjustments, or reversals
• Same issues recurring multiple years in a row
Address prior year issues
