ELECTRONIC WORKPAPERS Indiana State Board of Accounts

HISTORY Situation in 2000 Situation in 2000 Increasing workload due to: Increasing workload due to: Changing regulations. Average audit time in 1997 was days increased to days in 2000.Changing regulations. Average audit time in 1997 was days increased to days in Addition of new audits. Addition of 164 audits between 1997 and 2000.Addition of new audits. Addition of 164 audits between 1997 and Need to maintain high standards for Peer Review. Need to maintain high standards for Peer Review.

HISTORY (Continued) Situation in 2000 (Continued) Situation in 2000 (Continued) Need to follow standards set by Data Processing Oversight Commission. Need to follow standards set by Data Processing Oversight Commission. Microsoft Office is the standard for all desktop productivity suite products.Microsoft Office is the standard for all desktop productivity suite products. Microsoft Outlook is standard for groupware.Microsoft Outlook is standard for groupware. Responsible for 3964 audits. Responsible for 3964 audits. 806 Annual806 Annual 3158 Biennial3158 Biennial Requiring 58,175 audit days per year.Requiring 58,175 audit days per year.

HISTORY (Continued) Situation in 2000 (Continued) Situation in 2000 (Continued) Staff shortage: Staff shortage: Staff of 236 assigned directly to audits.Staff of 236 assigned directly to audits. Staff needed to keep current based on average audit days was 274 (Included 17 empty positions and 21 new positions).Staff needed to keep current based on average audit days was 274 (Included 17 empty positions and 21 new positions). Hiring freeze in effect.Hiring freeze in effect.

PAPERLESS AUDIT Paperless Audit Project started May 2000 Paperless Audit Project started May 2000 Goal: The goal of the paperless audit project was to enhance the quality and efficiency of audits performed by the State Board of Accounts. Goal: The goal of the paperless audit project was to enhance the quality and efficiency of audits performed by the State Board of Accounts. Means of Achieving Goal included: Means of Achieving Goal included: Providing TeamMate Providing TeamMate Project was not expected to decrease staff or to completely eliminate the need to increase the staff. There are too many external forces increasing the workload. Project was not expected to decrease staff or to completely eliminate the need to increase the staff. There are too many external forces increasing the workload.

WHY TEAMMATE Our Working Environment Our Working Environment The majority of our audits are of local government units. The majority of our audits are of local government units. Auditors must be able to work independent of any network. Auditors must be able to work independent of any network. Auditors perform audits on site, throughout the State.Auditors perform audits on site, throughout the State. State centralized network not available.State centralized network not available. For some units a phone is not available.For some units a phone is not available.

WHY TEAMMATE (Continued) We looked at five other audit automation packages. These were all we could locate after an extensive search. The first package did not contain sufficient controls for safeguarding workpapers. It also lacked an interface with MS Outlook. The first package did not contain sufficient controls for safeguarding workpapers. It also lacked an interface with MS Outlook. The second package was a fully networked application and was designed for an audit team working on-line. This was not a viable option for us. The second package was a fully networked application and was designed for an audit team working on-line. This was not a viable option for us.

WHY TEAMMATE (Continued) The third option contained a series of Audit modules. This made it a very costly alternative. It also required Lotus Notes which was in conflict with DPOCs standard. The third option contained a series of Audit modules. This made it a very costly alternative. It also required Lotus Notes which was in conflict with DPOCs standard. The fourth option had not been updated for some time and was no longer being actively marketed. The fourth option had not been updated for some time and was no longer being actively marketed. The fifth option turned out to be a data extraction and analysis tool. A useful audit tool but not an audit automation package. The fifth option turned out to be a data extraction and analysis tool. A useful audit tool but not an audit automation package.

WHY TEAMMATE (Continued) TeamMate had desired features TeamMate had desired features Ability to replicate part or whole audit for working in non-networked teams. Ability to replicate part or whole audit for working in non-networked teams. Designed to wrap around Microsoft Word and Excel (DPOC standard). Designed to wrap around Microsoft Word and Excel (DPOC standard). Provides easy audit status review. Provides easy audit status review. Automatic encryption and compression. Automatic encryption and compression. Easy backup. Easy backup.

WHY TEAMMATE (Continued) Linking between audit steps, workpapers and exceptions. Linking between audit steps, workpapers and exceptions. Automatic indexing of workpapers. Automatic indexing of workpapers. Access to audit controlled by password security. Access to audit controlled by password security. User and reviewer signoff controlled by password security. User and reviewer signoff controlled by password security. References contacted about TeamMate gave it very favorable reviews. References contacted about TeamMate gave it very favorable reviews.

IMPLEMENTATION Key to success of implementation is acceptance by users. Key to success of implementation is acceptance by users. We began our project by interviewing a large number of the staff to get their input on what was needed and problems that they envisioned. We began our project by interviewing a large number of the staff to get their input on what was needed and problems that they envisioned. We endeavored to address any problems and incorporate suggestions into the project. We endeavored to address any problems and incorporate suggestions into the project. This gave the staff a feeling of ownership in the project. This gave the staff a feeling of ownership in the project.

IMPLEMENTATION (Continued) We tried not to be unreasonable in what we expected from Auditors. We tried not to be unreasonable in what we expected from Auditors. We went from no computer for most of our audit staff to paperless in less than ten years. We went from no computer for most of our audit staff to paperless in less than ten years. We explained that Paperless was a misnomer and more appropriately Less Paper. We explained that Paperless was a misnomer and more appropriately Less Paper.

IMPLEMENTATION (Continued) We did not require that hardcopy documents provided by the units be made electronic. We did not require that hardcopy documents provided by the units be made electronic. We do not provide scanners to our auditors. We felt that forcing them to scan hardcopy documents would increase their audit time rather than decrease.We do not provide scanners to our auditors. We felt that forcing them to scan hardcopy documents would increase their audit time rather than decrease.

IMPLEMENTATION (Continued) We still maintain hardcopy packets of workpapers for audits. We still maintain hardcopy packets of workpapers for audits. These packets contain workpapers such as Attorney Representation letters, bank confirmations, cash counts, amortization schedules (provided by banks), and other schedules provided by units we audit. These packets contain workpapers such as Attorney Representation letters, bank confirmations, cash counts, amortization schedules (provided by banks), and other schedules provided by units we audit. We let nature take its course. Over time the hardcopy packets get smaller as auditors see advantage of electronic copies over hardcopies.We let nature take its course. Over time the hardcopy packets get smaller as auditors see advantage of electronic copies over hardcopies.

SURPRISES Excuses for slow acceptance by some: Excuses for slow acceptance by some: I just have to see the printed copy of that workpaper. I just have to see the printed copy of that workpaper. Ill put the workpapers into TeamMate at the end of the audit. Ill put the workpapers into TeamMate at the end of the audit. Ill start using TeamMate just as soon as I finish my next audit. Ill start using TeamMate just as soon as I finish my next audit. Also used with every upgrade.Also used with every upgrade.

SURPRISES (Continued) TeamMate tickmarks are graphic objects. TeamMate tickmarks are graphic objects. Too many and things start slowing down. Too many and things start slowing down. Hyperlinks between files can also cause problems when over used. Hyperlinks between files can also cause problems when over used. Attorneys want hardcopy documentation when audit findings go to court. Attorneys want hardcopy documentation when audit findings go to court. To solve this problem, our auditors begin printing workpapers when it appears an audit will end up in court. To solve this problem, our auditors begin printing workpapers when it appears an audit will end up in court.

SUMMARY While we experienced some surprises and some adjustment was needed by our auditors, our overall experience with TeamMate has been positive. While we experienced some surprises and some adjustment was needed by our auditors, our overall experience with TeamMate has been positive.