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CHILD SUPPORT DIRECTORS ASSOCIATION Audit Subcommittee Finance Committee Website address:

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee Mission: To provide education, resources, consultation and advocacy to LCSAs to assist in successfully preparing for and surviving financial audits. Tasks: 1.Create an electronic reference library that will include: General description of the financial audit process List of the types of financial audits currently being experience by LCSAs Issues that have occurred during LCSA financial audits Relevant fiscal authorities that pertain to common audit issues

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee Tasks: 2.Present to CSDA members Emerging audit issues Any recommended changes to fiscal practice in response to audit findings Information gleaned during communications with auditing agencies General education regarding how to survive an audit 3.Engage with Auditing Agencies Attempt to understand issues and pressures faced by auditing agencies Advocate regarding interpretation of authorities and application of rules 4.LCSA consultation and support Gather information about LCSA audit experiences Consult with LCSAs as requested

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee CS356 Financial Audit Overview Auditing Agency: DCSS Office of Audits & Compliance Scope: FY Also: cash handling procedures, equipment inventory. Scope was expanded to , 08-09, 09-10, for one county, and to 04-05, 05-06, 06-07, 08-09, for another county.

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee Timeline: Request for Entrance Interview/Questionnaire data sent: Early, October 2009 Entrance Interview held: Late, October 2009 Questionnaire due: Mid November, 2009 Requested materials submitted electronically by LCSAs: Late, Oct, 09 – Aug 2010 Note:3 month gap in requested materials: May – August 2010 Additional requested materials prior to site visit Early December, 2010 Site visit to LCSA by auditors + more documents requested December, 2010 Exit interview: December, 2010 Preliminary Findings: June 30, 2011 LCSA response: July, 2011 Findings: Pending at Jan 2012 Recoupment of disallowed costs:

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee Issues: Membership Fees in Lobbying Organizations (8 counties) Cash Basis Accounting Prepayment of CSDA dues (7 counties) Miscellaneous other prepaid expenditures (6 counties) Miscellaneous expenditures claimed late (1 county) Interest recorded in wrong quarter ( 1 county) Disallowed Expenditures Executives’ car allowance (5 counties) Food &/or water (4 counties) Personal use items (clothing, fancy pencils) (2 counties) “Expensive” office furniture (2 counties) Garbage removal included in lease agreement and separately additionally claimed (1 county)

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee Issues: Failure to complete semi-annual time certifications (4 counties) Expenditures Without Purchase Orders, Agreements or Contacts (2 counties) Failure to obtain prior written DCSS approval for equipment purchases > $5,000 (2 counties) Assigning a portion of A-87 costs to the EDP Claim (1 county) Failure to maintain an inventory ledger (1 county) Failure to allocate earned interest to the Child Support program (1 county) Use of interest estimates by the LCSA’s Auditor (1 county)

CHILD SUPPORT DIRECTORS ASSOCIATION Finance Committee Audit Subcommittee Resolution: