1. Audit Process and Requirements Overview ASTRA January 6, 2011 1

2. Administrative Operations Section Martin Eckhardt, Manager Delegated Audit Team Janette Martin, Team Lead – Shirley Gilchrist Ginnie Schirmer Lance Gagelman – Gary Bond – Leroy Charbonneau (on loan from FIT) 2

3. Delegated Audit Team Duties Agency Reviews Review/Approval of Non-Delegated Audit Transactions Claims – Legislative, Prior FY, Property Damage/Loss Statewide Indirect Cost Allocation Plan Travel and Subsistence Rates A&R’s Budget Preparation 3

4. Agency Review Components Random Sample of Agency Transactions Compliance Review of Transactions Capital Assets Local Funds Cell Phones Official Hospitality Agency Assigned Vehicles 4

5. – Authoritative Hierarchy Statutes (K.S.A.s) Regulations (K.A.R.s) Policy (PPM) Procedures (PPM, Informational Circulars, SMART “Blasts”, etc.) 5 Compliance Review of Transactions

6. Internal Control Segregation of Duties Approvals/Authorizations Custody of Assets Recordkeeping Reconciliations 6

7. History of Delegated Audit Delegated Audit AuthorityFiscal Year Began# Of Participants Under $500FY 199516 Under $1,000FY 199819 Under $2,000FY 200128 Under $5,000FY 200420 Total Delegated AuditFY 2004Regents Universities Under $5,000FY 2011All agencies 7

8. Agency Reviews (Audits) Two Review Perspectives Under SMART – A&R – Purchases Agency Reviews – FY 2010 – FY 2011 8

9. A&R Agency Reviews During FY 2011 – Began Nov. 29, 2010 – Reviews include FY 2009 & FY 2010 – 8 agency reviews conducted as of Dec. 31 9

10. Agency Reviews (Audits) – FYs 2009 & 2010 during FY 2011 Focus on STARS transactions Compliance Review of Transactions Assets Local Funds 10

11. FY 2011 A&R Reviews during FY 2012 A/P Asset Management Purchases Other Modules ? A&R Agency Reviews 11

12. A&R Agency Reviews As knowledge of SMART increases – Audits may be changed – Seek to become more paperless – Reliance on SMART internal controls may increase – Incorporate SMART features in audits 12

13. Agency Reviews (Audits) – FY 2011 during FY 2012 Reviewing SMART transactions Compliance Supporting Documentation Local Funds 1099 Reporting Assets 13

14. A&R Agency Reviews in FY 2012 Agencies won’t be penalized for not following procedures or processes that have not been formally and communicated. 14

15. A&R Agency Reviews Future A&R Reviews – Agencies have two opportunities to respond to audit findings Initial findings on audit findings worksheet Draft of audit letter – Continue on-site audits 15

16. da.ks.gov/ar/genacct/Audit/Delegated.htm – Delgated Audit Authority Program Overview – Agency Responsibilities – Accounts and Reports Responsibilities – Delegated Audit Procedures – What can the agency expect during the annual audit. 16 Delegated Audit Website

17. da.ks.gov/ar/genacct/Audit/Delegated.htm SMART Revisions for Delegated Audit – Work in progress – Evolving process – A&R will notify agencies when the website has been updated 17 Delegated Audit Website

18. Contact Information SMART Technical Questions – Submit Help Desk ticket Policy Questions – Email or Call Delegated Audit Team 18 Janette Martin Gary Bond Shirley Gilchrist Ginnie Schirmer Lance Gagelman Martin Eckhardt Janette.Martin@da.ks.gov Gary.Bond@da.ks.gov Shirley.Gilchrist@da.ks.gov Ginnie.Schirmer@da.ks.gov Lance.Gagelman@da.ks.gov Martin.Eckhardt@da.ks.gov 785-296-2708 785-296-7217 785-296-2882 785-296-7021 785-296-2255 785-296-2661

19. Questions ? 19