1. Virginia Sheriffs’ Institute New Sheriff Orientation
Accounting and Auditing Issues _____________________________________
November 29, 2017
Laurie J. Hicks, CPA, CFE
Auditor of Public Accounts

2. Provide an overview of the APA
Objectives
Provide an overview of the APA
Discuss the APA’s role in Auditing Sheriffs
State Account Audits
CPA Firm Specifications
Sheriff’s Accounting Manual
Typical findings from our audits
Other Requirements

3. Legislative Branch of Government External Auditor for Commonwealth
Overview of APA
Legislative Branch of Government
External Auditor for Commonwealth
Local Government and Judicial Systems Specialty Team
Staff located throughout the state that specialize in audits of courts and constitutional officers
The APA is a constitutional officer elected by the General Assembly.
Part of legislative branch of government and audit executive and judicial branch agencies.
External auditor.
Current APA – Martha Mavredes.

4. APA’s Role in Auditing Sheriffs
Responsibility for publishing the Virginia Sheriff’s Accounting Manual
Annually set guidelines for the CPA firms of the localities to follow during their audits
Annually perform our own audit of the state funds handled
Manual is on our website
It cites code sections and other mandates and we lay out accounting ‘best practices’.
When we come to do your audit, we look at just state funds (sheriff’s fees).

5. VA Sheriffs’ Accounting Manual
Internal Controls
Canteen Operations
Inmate Trust Funds
Work Release and Home/Electronic Incarceration
Prisoner Reimbursements
Medical Co-Payments
Evidence
Forfeited Property
Confidential Funds
Crime Prevention Programs and Donated Funds
Court Support Services
7 components of internal controls
Policies and procedures
Safeguarding physical assets
Separation of duties
Maintaining accounting records
Reconciliation
Information security
Supervisory review

6. APA Requirements for CPA Firms
Chapter 836 of the 2017 Acts of Assembly includes audit requirements for any funds received by the local Sheriff.
Auditor must identify all sources of funds, determine if internal controls are adequate, and if funds are deposited to an official account/remitted to Treasurer as required.
Specs must cover any funds received by the Sheriff.
All sheriffs are responsible for having sufficient controls and procedures in place to satisfy statutory requirements and prevent fraud, misuse, or loss of funds and assets. The Sheriff’s office must deposit all sources of funds in an official bank account and these funds are subject to the auditor’s review. The Virginia Sheriffs Accounting Manual, issued by the Auditor of Public Accounts, has recommended guidelines including aspects of sheriffs’ internal control environment. There are three major accounting areas in a Sheriff’s office: jail operations, law enforcement; and court support services. The accounting procedures in the manual serve as a guide to sheriffs for developing individual accounting and control procedures appropriate for the functions within these areas.
Chapter 836 of the 2017 Acts of Assembly (Item 2.C.) includes audit requirements for any funds received by the local Sheriff. The locality’s independent auditor is required to submit a letter to the Auditor of Public Accounts annually providing assurance as to whether for any funds received the sheriff has maintained a proper system of internal controls and records in accordance with the Code of Virginia.

7. APA Requirements for CPA Firms
Determine whether the Sheriff has controls to ensure:
compliance with the Virginia Sheriffs Accounting Manual
compliance with the Code of Virginia, Sections through
safeguards all money
ensures proper accountability of funds and their disbursement

8. APA Requirements for CPA Firms
The locality’s independent auditor is required to submit a letter to the Auditor of Public Accounts annually providing assurance as to whether the Sheriff has maintained a proper system of internal controls and records in accordance with the Code of Virginia.

9. APA Annual Audit Overview
Sheriff’s Internal Control and Procedures Questionnaire
Review documentation
Bank statements, reconciliations, canceled checks and checkbook for the audit period
Receipt books used during the audit period
Transmittal forms prepared during the audit period

10. APA Annual Audit Overview
Compare remittance to Treasurer per Sheriff’s records to Treasurer’s records.
Look at timeliness of remittances
Review bank statements; test for timely deposits
Deposit with the treasurer by the 10th of the month following collections
Deposit in bank weekly or when collections exceed $200.

11. Deposit Sheriff’s Fees Promptly Remit Sheriff’s Fees Timely
Common Audit Findings
Deposit Sheriff’s Fees Promptly
Remit Sheriff’s Fees Timely
Reconcile bank account monthly and have a review process
Obtain an appropriation prior to spending funds

12. Fraud Reporting Code of Virginia, Section 30-138
Upon the discovery of circumstances suggesting a reasonable possibility that a fraudulent transaction has occurred involving funds or property under the control of any state department, court, officer, board, commission, institution or other agency of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers, as to which one or more officers or employees of state or local government may be party thereto, the state agency head, court clerk or local official in charge of such entity shall promptly report such information to the Auditor of Public Accounts, the State Inspector General, and the Superintendent of State Police.

13. Report of Financial Condition
Chapter 836 of the 2017 Acts of Assembly (Item ) requires that each officer handling State funds make a detailed statement under oath, of the financial condition of his or her office.
Reminder from APA with an attached template sent in July of each year.

14. Auditor of Public Accounts (804) 225-3350 Laurie J. Hicks ext.327
Questions
Contact information:
Auditor of Public Accounts
(804)
Laurie J. Hicks ext.327
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