County of Riverside ■ Office of the Auditor-Controller FY 2008 CAFR/Audit Highlights Robert E. Byrd, CGFM County Auditor-Controller

County of Riverside ■ Office of the Auditor-Controller CAFR and PAFR CAFR and PAFR can be found at:

County of Riverside ■ Office of the Auditor-Controller Official County Reports Dazel Reports (July 2008 tab) include: –June Final thru Period 12 Report Run August 08, This includes Period 1-12 only. –FY2008 Final Report Run January 17, 2009 This includes Period 1-12 and Period 998 adjustments for FY 2008.

County of Riverside ■ Office of the Auditor-Controller CAFR/Audit Highlights Audit was completed 1 st week of December. Positive feedback from external auditors. Component Units submitted separate audited financial statements earlier than previous years.

County of Riverside ■ Office of the Auditor-Controller SAS 112 Communicating Internal Control Related Matters Identified in an Audit. Requires auditors to communicate matters related to an entity’s internal control over financial reporting in 3 categories. Control Deficiency Significant Deficiency Material Weakness

County of Riverside ■ Office of the Auditor-Controller SAS 112-Continued Material Weakness Significant Deficiency Control Deficiency Material Weakness: –Identification of a misstatement by the auditor Significant Deficiency: –Lack of controls over YE financial reporting Control Deficiency –Lack of controls in one area

County of Riverside ■ Office of the Auditor-Controller Management Letter Control deficiencies were reduced from five in FY07 to three in FY08. 1.Comprehensive capital assets report is not available in the Financial System. 2.Lack of County-wide Fraud Prevention Program 3.Lack of proper documentation for terminating Financial System Users.

County of Riverside ■ Office of the Auditor-Controller SAS 114 Report The Auditor’s Communication with those Charged with Governance Requires external auditors to communicate certain significant matters related to the audit: –Significant findings –Accounting practices and policies –Accounting estimates –Difficulties encountered during the audit –Disagreements with management –Uncorrected misstatements (Passed audit differences)

County of Riverside ■ Office of the Auditor-Controller SAS Continued What are Passed Audit Differences? Immaterial, uncorrected audit differences identified during the course of the audit process.

County of Riverside ■ Office of the Auditor-Controller Passed Audit Differences Why passed audit differences are important? The sum of multiple passed audit differences could accumulate to a material balance. In FY08, two items were reported to the Board of Supervisors on SAS 114 Report: –Prior period adjustment posted in the current year. –Due to Other Governments: GL amount did not match YE Schedule for one selected department.

County of Riverside ■ Office of the Auditor-Controller Passed Audit Differences - Continued Fiscal year 2008 SAS 114 Report to the Board:

County of Riverside ■ Office of the Auditor-Controller What is the County Departments Role? DAILY: Ensure activity is properly posted to the proper Fund, Department and Account. Establish and maintain internal controls to ensure information is properly and timely booked in the Financial System. Follow generally accepted accounting principles.

County of Riverside ■ Office of the Auditor-Controller What is the County Departments Role?-Continued MONTHLY: Reconcile Trial Balances: –Assets and liabilities must be supported by proper documentation (ie: outstanding billing invoices, outstanding vouchers, excel spreadsheets, etc.) –Accounts must have a natural balance  Research unusual credits in asset or expenditure accounts  Research unusual debits in liability and revenue accounts –Most balance sheet accounts should clear within a year.

County of Riverside ■ Office of the Auditor-Controller What is the County Departments Role?-Continued MONTHLY-Continued: Perform monthly invoicing to external/internal entities. –Do not wait until Year End (or the following year). Submit Capital Assets forms and maintain AM Module up-to-date.

County of Riverside ■ Office of the Auditor-Controller What is the County Departments Role? - Continued QUARTERLY: Reconcile, reconcile, reconcile. Provide quarterly flux and analysis to ACO as requested. 3 rd Quarter: –Submit Forms S-9, T-9 and V-9 timely and accurately.  Must tie to GL (Deferred Revenue, DFOG and DTOG) –Ensure your department will have sufficient appropriations for YE Accounts Payable Accrual!

County of Riverside ■ Office of the Auditor-Controller What is the County Departments Role? YEAR-END: Become familiar with the YE Calendar deadlines. Submit all schedules and accruals by the due date (usually 3 rd week in July). Confirm data on YE Schedules: –Is it accurate? –Does it tie to the general ledger? –Is all supporting documentation included?

County of Riverside ■ Office of the Auditor-Controller What is the County Departments Role? AUDIT PROCESS: Provide comprehensive data to auditor’s inquiry. Make information available to ACO and auditors such as billing invoices, receipts, payments, reports, spreadsheets, etc.

County of Riverside ■ Office of the Auditor-Controller What is the ACO’s Role in the Audit Process? Audits the daily information provided by departments through journals, vouchers and receipts. Publishes SPM’s and YE Manual to assist all departments maintain county-wide policies and procedures.

County of Riverside ■ Office of the Auditor-Controller What is the ACO’s Role in the Audit Process?-Continued Reviews and implements new GASB pronouncements. Establish chart of accounts. Provides guidance and assistance to departments as needed.

County of Riverside ■ Office of the Auditor-Controller What is the ACO’s Role in the Audit Process?-Continued Compiles all YE Schedules, reconciliations and communications for external auditors. Coordinates audit process with the external auditors. Compiles the financial data into the CAFR.

County of Riverside ■ Office of the Auditor-Controller How can we work as team? Communicating Training Cooperation with one another

County of Riverside ■ Office of the Auditor-Controller 2009 CAFR/AUDIT  Q:When does the 2009 audit process start? A: July 1, 2008  Q: Who are the external auditors? A: Current RFP in progress to hire the new audit firm.

County of Riverside ■ Office of the Auditor-Controller 2009 CAFR/AUDIT - Continued INTERIM AUDIT: Tentatively schedules for April/May 2009 Auditors may select multiple departments to evaluate internal controls. Be available to meet auditors, discuss controls, document processes, explain programs, etc.

County of Riverside ■ Office of the Auditor-Controller 2009 CAFR/AUDIT-Continued Component Units: ACO to schedule annual meetings for April 2009 with each Component Unit.

County of Riverside ■ Office of the Auditor-Controller 2009 CAFR/AUDIT Continued NEW GASB Implementations for FY 2009: GASB 49-Accounting and Financial Reporting for Pollution Remediation Obligations.

County of Riverside ■ Office of the Auditor-Controller Who to Contact  Chart of Accounts  Simpler/CAFR/New GASB  Year End

County of Riverside ■ Office of the Auditor-Controller Questions ? ? ? ? ? ? ? ? ? ?

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