1. IACCAC Annual Fall Conference November 7, 2012

2. Audit Team Todd Sprinkle Phone:(317) 233-9588 Cell: (317) 690-6689 Email: TSprinkle@idoc.in.govTSprinkle@idoc.in.gov 302 West Washington Street Rm. E334 Indianapolis, IN 46204 Fax: (317) 234-1664 Stephanie Taylor Phone:(317) 233-4758 Cell:(317) 690-7261 Email: StTaylor@idoc.in.govStTaylor@idoc.in.gov

3. Internal Auditing Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of the following: Risk Management Control Governance Processes The Institute of Internal Auditors (The IIA) Standards and Guidance

4. Our Goal To ensure compliance with funding and Community Corrections standards To ensure financial records retained are in compliance with IDOC and/or county requirements To serve as a resource for all financial/audit related questions Your mistakes do not make us look better.

5. How to Prepare for an Audit Notified via email approximately 30 days before scheduled audit date Review fiscal audit checklist Fiscal Reports Complete carryover worksheet Financial Statement 13 Be available for questions Dont Panic!

8. What We Look At Grant Payments (Monthly quietuses) Project Income (Daily deposits, Monthly quietuses) Grant Carryover (Review worksheet) Vehicle Mileage Logs (Detailed daily activity) Claims (Effective use of dollars, sales tax, approval) Fixed Asset Inventory List ($500 or more or 1 yr. life) A person cannot correct something if he/she doesnt know its wrong.

9. Post Audit - Exit Interview Meet with Director and staff to discuss audit Share best practices Findings/Recommendations Corrective Action Plan (C.A.P.) Audit Letter Director Advisory Board Grant Carryover Invoice Payment due 30 days from audit letter

10. Frequently Asked Questions Am I required to use the Vehicle Mileage Log (State Form 13696) or can I create my own form? It is acceptable to create your own Vehicle Mileage Log as long as long as your form captures the same information as the State form. How long after I have been audited do I have to keep my files? SBoA requires all accounting files be kept for three (3) years after their audit. What is the Performance Bond and what is required for the audit? The Performance Bond is liability protection against potential employee fraud. A copy of the Performance Bond is needed at the time of the audit.

11. FAQs contd My grant carryover is $4.64. Do I have to return such a small amount? You will be invoiced for any amount under $100.00. If your grant carryover is under $100.00, you will need to request a transfer with your Regional Director for that amount to be moved into the Project Income fund. Is lodging tax exempt? Hotels have the legal right to charge Indiana sales tax. If a hotel chooses to charge you State sales tax, the cost will have to be absorbed within your office. If a hotel does not charge you State sales tax, then you can just pay what you have been charged.

12. FAQs contd Can two (2) funds be used to separate the grant years? Yes, we prefer that it is done that way to isolate the carryover from one year to the other. Can I write on the Auditors report in order to make adjustments? Absolutely! The question you have is probably the same question that everyone else has.

13. Phrases to Remember Dont Panic! I know all about that, I just dont remember. Your mistakes do not make us look better. A person cannot correct something if he/she doesnt know its wrong. It is possible to disagree with respect, to be wrong with integrity, and to be right with humility. The question you have is probably the same question that everyone else has.

14. THANK YOU!