1. Top Five Issues Discovered In Government Audits Presented by: Adam McCane

2. Internal controls Capital assets/expenditures Net position/fund balance Balance sheet “stuff” Address prior year issues Questions 2 Outline

3. Failure to adequately document significant processes and policies Too many “exceptions” to the policies, that aren’t documented Failure to re-evaluate documented policies and processes after system changes 3 Internal controls

4. Fixed asset details/sub-ledgers that don’t reconcile to the general ledger Failure to reconcile capital expenditure accounts to fixed asset ledger 4 Capital assets/expenditures

5. No adopted fund balance policy consistent w/ GASB 54 Not adequately identifying committed and assigned funds/sources Not properly calculating net investment in capital assets 5 Net position/fund balance

6. Unreconciled miscellaneous balance sheet accounts Failure to adequately accrue receivables/payables into the proper reporting period Accounting staff not communicating w/ other departments for non-cash transactions 6 Balance sheet “stuff”

7. Improper entry of PY audit adjustments, or reversals Same issues recurring multiple years in a row 7 Address prior year issues

8. Questions? Adam McCane, CPA Partner, Assurance Services Direct: 512-609-1968 Adam.McCane@Weaver.com