EXTERNAL AUDITS LPA Roundtable Event November 2015 Presented by: - - PowerPoint PPT Presentation
EXTERNAL AUDITS LPA Roundtable Event November 2015 Presented by: Gregory Stephens, Manager Overview 1. Background Information 2. Different types of services and reviews provided o Reasons completed 3. Selection Criteria/Risk Based Criteria
Presented by: Gregory Stephens, Manager
LPA Roundtable Event November 2015
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Timesheet support for all paid hours in payroll period Payroll support for Employee Base/OT rate Timesheet documents hours worked on each project Employees' time tracked to payroll records Timesheet tracks time daily (work, leave, holiday, sick, etc) Support of Employee status Employee approval of timesheet Date of Employee approval Supervisor approval of timesheet Employee is full-time, with benefits Date of Supervisor approval Overhead method approved for use Supervisor approval, no less than monthly Overhead rates calculated correctly Overtime allocated to all projects Corrections (made in ink and initialed) Time Tracking Payroll Register Overhead Elgibility
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– Needed no support of costs for the LPA to apply this rate. –Of 300 LPAs receiving Federal funding in 2014, only a few LPAs requested the use of their own approved rate.
– Need to be documented and supported with actual incurred costs from the LPA’s accounting system data.
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when considering the costs of the:
– Entire Agency – Engineer’s Office – Specific subset of the Engineer’s Office
ODOT LPA External Auditor can help work with the finance staff to explain what documentation is needed and why it’s needed.
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When reviewing the rate documentation, per Federal requirements, we ensure:
basis.
– Most often includes Health Insurance and/or Workers’ Compensation
included.
included.
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– Dependent on the amount of Federal funding expended during the LPA’s fiscal year.
– $500,000* over – annually – this audit is referred to as a Single Audit. –Less than $500,000* - Regular audit – may be completed annually or every other year.
*Threshold changed to $750,000 in 2015 with implementation of 2 CFR 200
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– “Findings” or “Noncompliance” with the ODOT Highway
– Management Letter “Findings” or Recommendations?
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– Expenditure reporting is not correct.
Clearinghouse form.
– There are issues identified that may relate to the Highway Program.
– AOS review is very high-level as it is reviewing all the LPA departments; ODOT is reviewing one specific project.
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Audit AOS Audit Review Fringe and Overhead Rate Review Limited Scope Review RRF Advisory Role Education and Training
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each LPA.
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For those entities selected for audit, the audit file introductory page provides selection criteria: As the Requirement Review form was implemented in 2015, the results from it and the LSR will also become part of the risk criteria in the future.
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– Person in Responsible Charge, Legislation to enter into project, Bid Documents include FHWA 1273, EPLS
– Bid tab, Bid policy, Bid award, 30 percent tracking
– Includes detail for work completed, equipment used, personnel labor, bid quantities
– Change order policy followed, significant change orders identified
– Agreements include FHWA 1273, Correct indirect rate applied to Consultant invoices, Support for Consultant labor
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–Was the final inspection and Final Report completed? –Did the Invoice Reconcile to planned costs?
–CE Invoices
method?
–Schedule of Expenditures of Federal Awards (SEFA)
reporting its Federal expenditures?
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compliance.
– Work closely with LPAs to identify other costs that could be documented in the future. – Work closely with LPAs to better understand the requirements and the process.
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