AUDIT READINESS 0708 Site Visit

AUDIT READINESSPerry L. Herrington, Executive Director of Title III ProgramsFlorida A & M UniversityJuly 23, 2005Why It’s Important• Helps You carry out your responsibilities• Assures that funds will be used forintended purposes• Identifies potential issues BEFORE theyare disclosed by an audit• Gets rid of Audit Phobia• Can be used as a training tool• Provides means for process improvement1The Fundamentals• Day-to-day, adhering to programobjectives, laws, regulations, andguidance• Doing the specific things the fundedprogram should be doing per OMBCircular A-133, the program regulations,and the terms of the grant award(including the grant application)The Fundamentals (continued)• Proper execution of responsibilities• Proper accounting for federal/state funds• Only use funds for intended purposes• Adequately document program activitiesand use of funds• Perform internal audits2Maintaining Adequate Records• Recipients responsible for properrecordkeeping• Recipients responsible for proper retention• Recordkeeping should be sufficient toestablish an audit trail• When in doubt, keep it!ED’s ConcernsLarge amounts of unobligated funds Excessive / Infrequent requests Project goals not met - ED monitors3Budget ItemsMust be:• Allowable - permitted or not specificallyprohibited• Allocable - necessary for project’s success• Reasonable - costs incurred by a “prudent” personCommon Audit Exceptions• Poor recordkeeping / management• ...