SCO Audit Tales. Chapter I. California State University, Sacramento

Transcription

1 SCO Audit Tales Chapter I California State University, Sacramento

2 Agenda Timeline as 1 st Campus Preparation Defining Parameters Audit Team Areas of SCO Interest Areas of Campus Concern Current Status Lessons Learned

3 Timeline 1 st Campus October 9, 2007 Picked/Volunteered as 1 st Campus; began Preparation October 16, 2007 Submitted GAAP Package to CO October 16, 2007 Submitted requested information to SCO October 22, 2007 Entrance Meeting November 13, 2007 On-Campus Fieldwork Begins February 8, 2008 On-Campus Fieldwork Ends March 4, 2008 Informal Exit Meeting June 3, 2008 Heard about Draft Report during CO/SCO Teleconference June 4, 2008 Received unofficial Draft Report July 28, 2008 Received official Draft Report August 11, 2008 Submitted Campus Response to Audit September 19, Final Report Issued November 20, 2008 SCO Audit Evaluation Questionnaire

4 Preparation Reviewed Sacramento State s FIRMS data that was provided to the SCO by the CO State GL 9000 Operating Expenditures for CSU Fund 485 and last of General Fund by FIRMS Object Code for 06/07 and 1 st three months of 07/08 That data contained the beginning of RMP Disbursement transactions and PO s Lots of transfers to explain as we moved to RMP

5 Preparation Tied FIRMS balances to Journal Sources to define and focus the audit scope clearly At Sac State, APS Journal Source also represents disbursements from the AP subsystem Our position: Transactions from all other Journal Sources and CSU Funds are out of scope

6 Defining Parameters Example FIRMS Recon by Journal Source 7/07 thru 9/07 SCOPE Tied to FIRMS

7 Defining Parameters Early SCO Information Request had ten items Many sounding like FISMA Worked with CO and SCO to reduce from ten to five items Did not want to set CSU Precedents

8 Defining Parameters State of California John Chiang, State Controller M e m o r a n d u m To : Justine Heartt Date: November 21, 2007 University Controller Accounting Services CSU, Sacramento From : Jessica Encarnacion Staff Management Auditor State Agency Audits Bureau State Controller s Office Updated Request Subject: Information Request To help facilitate our review of the accounting and internal processes of the student fee trust accounts, would you please provide us with the following (hard copy or electronic form): 1. Board minutes of all meetings held during July 1, 2006 through present. 2. Current organization charts that identify the departments/units involved in the areas related to student fees. 3. Campus policies, procedures manuals and flow charts pertaining to procurement and contracting services, cash receipts/accounts receivable, and cash disbursements/accounts payable. 4. Executive Orders (EO) related to the receipt and disbursement of student fee revenues. (Auditors were already provided a copy of EO No. 761 and 1000 from the Chancellor s Office.) 5. A list of all contracts, which includes the contractor s name, contract number, term of the contract, contract amount, and balance of contract as of 9/30/07.

9 Audit Team Three Auditors were scheduled to perform fieldwork Usually two were on campus at any given time Fieldwork commenced November 2007 and was estimated to end December 2007 On-Campus Fieldwork actually ended February 8, 2008 Some fieldwork would be performed remotely because Audit Team will have PeopleSoft Access Fieldwork continued at the SCO they moved during audit, had mandated training during audit Information requests continued while the team worked from the SCO Since they are so close to campus they often worked remotely

10 Areas of SCO Interest Pretty much the same as Sonoma State University Sample selection was not random Heavy on Business Hospitality Travel Contracts ProCard High Dollar

11 Areas of SCO Interest Info and Sample Requests Documentation CO Executive Orders, SAM, SUAM, RMP Guidelines, Campus Policies 485 AP transaction queries that included Invoice Number, Invoice Date, Accounting Date, Vendor Name, Control Group, Voucher ID, PO Number, Check Number, Fund, Account, FIRMS Object Code, Amount Samples drawn from those queries for review 300 AP Samples (Direct Pay, Invoices, Pro Card) Control Groups, Payment Requests, Invoices, Supporting Docs Plus all Purchase Order Contracts

12 Areas of Campus Concern PeopleSoft Access Requests for Audit Team Gave them access to a PreProduction instance Made them do confidentiality training and sign agreement PeopleSoft, Chart of Accounts and remedial CSU training requirements for Audit Team - CSU 99 Ownership of their office area for the duration of the audit very suspicious Duplication of FISMA and KPMG audits SUF Recons, Bank Recons, Review of Trust Agreements, Review of Signature Authority, Fixed Assets, ProCard, Travel, Hospitality, Detailed Review of Internal Controls

13 Areas of Campus Concern Differences in SCO and CSU Organizational Cultures Agree with Sonoma State Communication was the biggest problem Told NO issues then SURPRISE! Feedback Able to express concerns through SCO Audit Evaluation Questionnaire

14 Current Status Campus Audit issued on September 19, 2008 From the SCO Summary, Our audit did not disclose any significant internal control problems or weaknesses that would be considered pervasive in their effects on the accounting and internal controls over the expenditures of student fee revenues. Finding 1 Accounts Payable policies not consistently followed. Finding 2 Internal controls over ProCard should be improved. Final Report to be combined with other 22 campuses

15 Lessons Learned Common Sense Rules - Be Prepared. Agree with list from Sonoma State University Make sure you are following your campus Policies!! Remember this audit is just for 485 Reel them back in whenever they start to wander Train staff they will be talking to about this audit Ask CO for help if needed Call those that have gone before you

16 Questions?? Justine Heartt Interim Associate Vice President for Financial Services California State University, Sacramento (916)