Audits and Fiscal Reporting Todd Sprinkle & Lucas Karr February 22, 2017

Internal Auditing Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of the following: Risk Management Control Governance Processes The Institute of Internal Auditors (The IIA) “Standards and Guidance”

Our Goal To ensure compliance with funding and Community Corrections standards To ensure financial records retained are in compliance with IDOC and/or county requirements To serve as a resource for all financial/audit related questions

How to Prepare for an Audit Notified via email approximately 30 days before scheduled audit date Review fiscal audit checklist Fiscal Reports Complete carryover worksheet Financial Statement 13 Be available for questions “Don’t Panic!”

What We Look At Grant Payments (Monthly quietuses) Project Income (Daily deposits, Monthly quietuses) Grant Carryover (Review worksheet) Vehicle Mileage Logs (Detailed daily activity) Claims (Effective use of dollars, sales tax, approval) Fixed Asset Inventory List ($500 or more or 1 yr. life) “A person cannot correct something if he/she doesn’t know it’s wrong.”

DETAILS FROM MILES DRIVEN1 ATTACHMENT : I Commission number Agency Fund / Center Status END MILEAGE   Temp Perm Date in service (month, day, year) Time START MILEAGE AM PM Date out of service (month, day, year) MILES DRIVEN DAY ODOMETER READING DETAILS FROM MILES DRIVEN1 REASON FOR TRAVEL COMMUTE2 MILES GASOLINE OIL MAINTENANCE COSTS DRIVER INITIAL FROM TO GAL. COST Qts Cost Comm. State Ending Milage Totals 0.00 1 For Temporary vehicles, show each individual trip including areas for each location. For Permanent vehicles, record trips in accordance with your agency's policies. 2 Must include number of personal miles I hereby certify that there were no commuting or personal miles driven except as noted and all other mileage was driven in the discharge of authorized duties. Pre-Audited and approved by: State agency (signature) Name of agency Division Signature of driver Indiana Department of Correction Fianance REPORT OF VEHICLE MILEAGE AND COST State Form 13696 (R2 / 1-97) Approved by State Board of Accounts 1997 STATE MOTOR POOL

Post Audit - Exit Interview Meet with Director and staff to discuss audit Share best practices Findings/Recommendations Corrective Action Plan (C.A.P.) Audit Letter Director Advisory Board Grant Carryover Invoice Payment due 30 days from audit letter

Frequently Asked Questions Am I required to use the Vehicle Mileage Log (State Form 13696) or can I create my own form? It is acceptable to create your own Vehicle Mileage Log as long as long as your form captures the same information as the State form. What is the Performance Bond and what is required for the audit? The Performance Bond is liability protection against potential employee fraud. A copy of the Performance Bond is needed at the time of the audit.

FAQ’s cont’d My grant carryover is $4.64. Do I have to return such a small amount? You will be invoiced for any amount under $100.00. If your grant carryover is under $100.00, you will need to request a transfer with your Regional Director for that amount to be moved into the Project Income fund. Is lodging tax exempt? Hotels have the legal right to charge Indiana sales tax. If a hotel chooses to charge you State sales tax, the cost will have to be absorbed within your office. If a hotel does not charge you State sales tax, then you can just pay what you have been charged.

FAQ’s cont’d Can two (2) funds be used to separate the grant years? Yes, we prefer that it is done that way to isolate the carryover from one year to the other. Can I write on the Auditor’s report in order to make adjustments? Absolutely! “The question you have is probably the same question that everyone else has.”

Phrases to Remember Don’t Panic! I know all about that, I just don’t remember. A person cannot correct something if he/she doesn’t know it’s wrong. It is possible to disagree with respect, to be wrong with integrity, and to be right with humility. The question you have is probably the same question that everyone else has.

Financial Tracking Monthly report due by the 15th of each month Monthly reports should show your agency on track based on budgetary planning. Example: The December report should show approximately 50% of spending has taken place for the year.

Payments When will I get my up-front funding? When will I get my monthly funding? If I am receiving new funding through an amendment, when will I receive that? Who do I contact with questions about my payment? LKARR@IDOC.IN.GOV

QUESTIONS?