IACCAC Annual Fall ConferenceNovember 7, 2012

Todd Sprinkle Phone:(317) 233-9588Cell: (317) 690-6689Email: TSprinkle@idoc.in.gov

302 West Washington Street Rm. E334Indianapolis, IN 46204

Fax: (317) 234-1664

Stephanie TaylorPhone:(317) 233-4758Cell: (317) 690-7261Email: StTaylor@idoc.in.gov

Internal Auditing Internal Auditing is an independent, objective assuranceand consulting activity designed to add value and improve an organization’s operations. It helps an organizationaccomplish its objectives by bringing a systematic,

disciplinedapproach to evaluate and improve the effectiveness of thefollowing:Risk ManagementControlGovernance Processes

The Institute of Internal Auditors (The IIA) “Standards and Guidance”

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.”

How to Prepare for an Audit

Notified via email approximately 30 days before scheduled audit date

Review fiscal audit checklistFiscal ReportsComplete carryover worksheet

Financial Statement 13Be available for questions

“Don’t Panic!”

What We Look AtGrant 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 doesn’t know it’s wrong.”

Post Audit - Exit Interview Meet with Director and staff to discuss auditShare best practices

Findings/RecommendationsCorrective Action Plan (C.A.P.)

Audit LetterDirectorAdvisory Board

Grant Carryover InvoicePayment due 30 days from audit letter

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.

FAQ’s cont’d 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.

FAQ’s cont’d

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 Auditor’s report in order to make adjustments? Absolutely!

“The question you have is probably the same question that everyone else has.”

Phrases to Remember Don’t Panic!I know all about that, I just don’t remember.Your mistakes do not make us look better.A person cannot correct something if he/she

doesn’t know it’s 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.

THANK YOU!