The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services What To Expect During An Audit 2015 OCD Chip Housing Conference November 4, 2015

Audit Process Audit Report and Response On-Site Audit Pre-Audit ScheduleCollect documentation Complete Internal Control Questionnaire

Requested Documentation Revenue and Expense Report Shows grant revenue and expenditures Compared to Financial Report submitted to ODSA Detailed List of Transactions Identifies transactions for testing during on-site audit Internal Control Questionnaire Reviews Policies and Procedures Ensures controls are in place

Revenue & Expense Report Reviewed to: a.Ensure that grant funds and non-grant funds are separate; b.Ensure revenue and expenses are reported correctly; c.Ensure that expenses are separate by grant category; and d.Ensure that grant activity amounts are within budget.

Revenue & Expense Report As of DECEMBER 31, 2015 Project 325: Community Housing Improvement Plan A-C-15-0XY-1 Revenue 4200Grant revenue250, Interest income0.00 Total Revenue250, : Private rehabilitation 5200Private Rehab188, Consultant5, Total Private Rehabilitation193, Home/Building Repair 5310Building Repair15, Home Repair14, Consultant Total Home/Building Repair31, Fair Housing 5500Fair Housing4, Consultant0.00 Total Fair Housing4, Administration 5000Salaries4, FICA Health insurance Unemployment tax Workers' compensation Supplies Consultant15, Total Administration21, Total Expenses250, Revenue Less Expenses-0.57

Financial Report Date Printed: 12/15/15 OHIO HOUSING TRUST FUND STATUS REPORT PERIOD ENDED 12/31/15 GRANT PERIOD: 1/1/14 TO 12/31/15 CITY OF WONDERLANDA-C-15-0XY-1 OCD REPRESENTATIVE: John Doe GRANT AMOUNT: $ 250,000 I certify that to the best of my knowledge the data in this report has been verified to be true and correct as of the date of this report. Providing false or misleading information in this document will result in sanctions against the above named grantee and, as outlines by the OCD Progressive Corrective Action Policy, may lead to termination of the grantee eligibility for OCD programs. Name and Title of Chief Executive Officer Signature of Chief Executive OfficerDate Report completed byPhone Number I. PROGRAM BUDGET - AWARDED FUNDS OHTF FUNDS ACTIVITY NUMBERACTIVITY ACTIVITY/PROJECT LOCATION APPROVED BUDGET FUNDS DRAWN TO DATE FUNDS DISBURSED TO DATE 1Private RehabilitationCountywide200,000193,640 2Home/Building RepairCountywide25,00031,360 3Fair Housing ProgramCountywide4,000 4AdministrationCountywide21,000 TOTALS250,000 Please explain the reasons for any differences greater than plus or minus 10% between budgeted and actual expenditures for each activity (at final reporting). Explain ANY difference between total funds expended and total funds received (at final reporting). Describe your "best efforts" to achieve the proposed levels.

Statement of Revenue & Expenses CITY OF WONDERLAND CDBG A-C-15-0XY-1 GRANT PERIOD: JANUARY 1, 2014 to DECEMBER 31, 2015 STATEMENT OF REVENUE AND EXPENSES AS OF DECEMBER 31, 2015 AcctDescriptionActual Exp.AdjustmentsGL asApprovedBudget lessFinancialFR less per GLDebitCreditAdjustedBudgetAdj GLReportAdj GL REVENUE: Federal Grant250, Returned funds0.00 TOTAL REVENUE250, EXPENDITURES: Private Rehabilitation193, , , , Home/Building Repair31, , , , Fair Housing Program4, , General Administration21, , , TOTAL EXPENDITURES250, , , UNEXPENDED GRANT FUNDS-0.57

On-Site Testing When on-site the following items will be reviewed:  Disbursements  Payroll  Payroll Taxes  Revenue  Match  Bank Reconciliation

Disbursements Transactions are reviewed to ensure they are: Allowable per the federal regulations and the grant agreement Reasonable Adequately documented – we look to see if there are invoices, packing slips, contracts, etc.

Payroll One pay period will be reviewed to ensure charges are: Actual, not estimated Calculated correctly Adequately documented

Time Sheet Example ENTITY NAME Employee Activity Report Employee Name:Sally SmithPay Period Ended:9/26/15 ProgramCodeSunMonTueWedThuFriSatSunMonTueWedThuFriSatTotal Grant BBBBB BCC Grant AAAA Grant D Prgm Inc D Total Work Hours Leave Time: Vacation 8.00 Personal 0.00 Sick 0.00 Holiday 0.00 Funeral 0.00 Other 0.00 Total Leave Time Total Hours

Payroll Taxes and Revenue Payroll Taxes Review the period closest to the audit date ensure that payroll taxes are paid timely and correctly Revenue Review bank statements and deposit slips Ensure deposits are made on a timely basis Ensure correct amount is deposited

Match Documentation will be reviewed to ensure that cost sharing/match expenses: Verifiable Allowable Reasonable Not used as match to another grant Not grant expenses for another grant Agree with the Financial Report submitted to ODSA

Bank Reconciliation Reviewed to ensure that the bank reconciliation is done timely and correctly. City of Wonderland Bank Reconciliation Completed on 7/15/15 June Bank Balance 1,021, Less Outstanding Checks/Vouchers 57, Plus Deposits in Transit Plus or Minus Misc. Items (2,049.63) Reconciled Bank Balance 961, G/L Beginning Balance – 6/1/15 785, Less Checks/Vouchers 178, Plus Deposits 355, Misc. Adjustments Bank Fee (50.00) Interest (15.70) G/L Ending Balance – 6/30/15 961, Unreconciled Difference -

Audit Report and Response Report: Issued within 30 days Includes a list an findings or issues Response: Written by grantee 30 days to complete Addresses audit findings

Common Findings Non-segregation of accounting information by grant and/or grant activity Financial reports not in agreement with accounting information Inability to verify reported match Salary charges based on budget Unexpended grant funds not returned Lack of documentation for charges to the grant

2 CFR 200 The Super Circular This new guidance replaces 8 OMB circulars including: A-87 Cost Principles for State, Local and Indian Tribal Governments A-102 Grants and Cooperative Agreements with State and Local Governments (Admin Rules) A-133 Audits of State, Local Governments, and Non-Profit Organizations

Key Changes from 2 CFR 200 A-133 audit or Program Specific Audit for federal grants more than $750,000 Submitted to Federal Clearing House Must notify ODSA when submitted Audit Requirements Program income spent before federal funds Federal agencies may negotiate agreements regarding program income as part of closeout process Program Income Full and open competition Written procedures for procurement transactions New requirements effective June 30, 2016 Procurement Procedures

Procurement Requirements Micro-Purchases Supplies or services Less than $3,000 No competitive bids needed Prices must be reasonable and distributed among qualified suppliers Small Purchases Supplies, services or other property Less than $150,000 Need prices and rate quotes from a number of qualified suppliers

Procurement Requirements Continued Sealed Bids Supplies and services More than $150,000 Preferred for construction projects Publicly solicited bids Fixed prices contract to lowest bidder that meets the needs of the contract Competitive Proposals Fixed price or cost reimbursement contracts More than $150,000 Awarded to firm with most qualified proposal, considering prices and other factors Sole Source Non-competitive proposals Only used when: Item is available from a single source Public emergency Authorized by Federal Agency No competition

Questions Bryn Haggins (614) Lori Jordan (614) Audit Office (614)