FY2010 Annual Audit Presentation Wermer, Rogers, Doran, & Ruzon - - PowerPoint PPT Presentation

FY2010 Annual Audit Presentation

Wermer, Rogers, Doran, & Ruzon LLC May, 2011 Committee of the Whole

Why have an audit?

The County must carry out many

statutory duties – Sheriff, Coroner, Treasurer, etc.

Resources such as taxes are needed

to perform these duties

What has the tax money been spent

• n?

Audit Basics

The purpose of the County’s annual audit is

 To give an opinion on the accuracy of the County’s

financial statements

 To determine if the County is compliant with generally

accepted accounting principles and certain laws & regulations

 To determine if the County is compliant with federal

program requirements (single audit)

Management’s Role vs. Auditor’s Role

 Financial statements are the responsibility of

management (Finance Director) - NOT the auditor

 Auditor’s role MUST be limited according to

auditing standards (“independent”)

County Board

 Oversight of County operations, including budgeting

and financial reporting

Finance Department

 Must have an understanding of the risks of fraud

within the County, including any specific fraud risks the County has identified or account balances or transaction classes that may be susceptible to fraud.

 Must maintain effective control over the budgetary

process.

Finance Department

 Responsible for development and implementation of

procedures for initiating, authorizing, recording, processing, and reporting transactions.

 Responsible for maintaining the accounting records,

supporting information, and accounts involved in performing procedures for transactions.

Support for Accounting Transactions

 All accounting transactions must be supported by

documents that justify the information associated with the entry

 Examples include: receipts, invoices, bank deposit

slips, etc, depending on the type of transaction

Source documents should answer the following questions:

 Where is the money coming from (revenue) - what

fund?

 Where is it going & why (disbursement)?  What is the amount of the transaction?  What is the date of the transaction?  Who authorized the transaction?

Source documents should answer the following questions:

 Easiest if there are procedures in place that

automatically result in each transaction having the required documentation.

 Auditors must review source documents (usually a

sample)

Other Financial Information

 Accrued Receivables – What is owed to County  Accrued Payables – What the County owes to

• thers

 Capital Assets – valuation and reporting  Long-term Debt – bonds and debt certificates  Adherence to accounting standards  GFOA Certificate of Achievement

Audit Procedures

 Review prior year reports, board minutes, fraud

risks

 Test controls  Develop audit programs  Test transaction classes – revenues, expenditures,

assets, liabilities, federal grants

 Prepare draft financial statements  Revise drafts, provide auditor’s report

* A portion of the 2010 amount is budgeted to be rolled into the 2011 budget ($323,394).

*

Property Taxes Sales Tax RTA Sales Tax Income and Other Taxes Interest Fines, Fees and Other Grants Reimburse- ments Riverboat 2006 41,804,809 15,428,687

• 20,696,694

7,773,867 33,330,949 19,144,922 18,808,355 8,641,538 2007 47,398,219 15,185,000

• 21,641,561

9,928,113 35,975,161 19,241,896 9,732,600 7,658,918 2008 49,589,160 14,150,887 8,635,540 23,113,345 5,275,052 34,151,339 16,626,174 15,513,114 8,517,392 2009 52,329,930 12,141,294 13,318,720 20,981,264 2,372,209 31,909,344 19,338,212 20,408,155 7,982,047 2010 53,155,305 12,434,442 13,743,234 21,400,938 1,799,350 31,190,322 22,637,065 21,220,649 6,408,119

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Dollars

Governmental Revenues Last Five Fiscal Years

2006 2007 2008 2009 2010

General Government Public Service and Records Judicial Public Safety Highways and Streets Health, Welfare & Development Debt Service Capital Outlay 2006 22,316,291 12,903,209 17,598,305 40,841,088 14,769,067 16,045,479 4,445,818 27,927,211 2007 29,879,065 11,243,767 19,185,750 40,882,852 16,424,217 16,364,512 6,859,071 55,353,962 2008 28,411,201 12,724,625 21,065,381 42,055,177 27,239,527 16,725,957 9,084,859 28,417,337 2009 27,204,959 12,594,229 20,081,359 39,831,091 24,719,571 16,283,571 8,978,628 28,278,674 2010 26,049,450 15,383,578 20,701,581 40,524,765 27,650,279 16,924,900 9,542,741 14,041,253

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Dollars

Governmental Expenditures by Function Last Five Fiscal Years

2006 2007 2008 2009 2010

Personnel Services Contractual Services Commodities Capital Other Debt Service 2006 75,671,277 40,930,607 7,172,533 27,927,211 699,022 4,445,818 2007 79,726,951 41,738,592 6,939,389 55,353,962 5,575,231 6,859,071 2008 85,154,547 51,764,213 9,202,632 28,417,337 2,100,476 9,084,859 2009 84,865,151 44,311,679 8,461,632 28,278,674 3,076,318 8,978,628 2010 85,964,516 50,432,846 8,907,207 14,041,253 1,929,984 9,542,741

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 Dollars

Governmental Expenditures by Object Last Five Fiscal Years

2006 2007 2008 2009 2010