Forest Service Financial Statement Audit Management Process

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Forest Service Financial Statement Audit
Management Process

• Presented byTammy Hanan

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Overview of Process

• Signed Contract
• Entrance Conference
• Provided by Client Lists
• Process Analysis Documents
• Business Process Re-engineering
• Extracts
• Samples
• Tracking Statistics
• Audit Status Meetings

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Audit Sample - Cover Letter Contents

• Accounts Receivable for September FY-2004
• FS_ID No ________________________
  
• KPMG OBS No___________________
• ORG (RR/UU) ______________________
• TC (Transaction Code) ______________
• DOC_IDs (Document Nos) __________________
• KPMG OBS AMOUNT (Summary Page)______________
• CONTACT
• NAME/PHONE______________________
• Number of pages (including cover sheet)______
• For WO Use only
• Process Stage
• Date Initials Recd from field
• Assigned to QA
• Additional Documentation Needed
• Additional Documentation Received
• QA Completed
• Sent to KPMG
• Manifest Number ___________________________

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Audit Sample Lead Sheet Contents

• FOREST SERVICE FINANCIAL STATEMENT AUDIT LEAD
  SHEET
• Audit Sample Extract _________ Observation No.
  ______
• Contract/Permit No.___________
  Amount______________
• Prepared By__________ Date ______ Phone
  __________
• Approved By_________ Date ______ Phone
  __________

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Audit Sample Documentation Checklist

• Package Administration
• ____Checklist Complete and Certification Signed
  (Include Checklist and Certification)
• Source Documents
• _____Signed and dated Agreement with associated
  FY 04 operating plan, if applicable
• _____Special Use Authorization transactions,
  include a copy of the special use authorization
  permit, the INFRA-SUDS billing document, Bill for
  Collection, and any related LX documents.
• FFIS Print Screens
• ____MJOB, PJOB, and SJOB for each relevant job
  code(s)
• ____VXDD for payment related transactions such as
  PV, PV clones, SV, RC, MO, MO clones, BD, BF, BP,
  BR

• FDW Reports
• ____TRBC(s) showing amounts equaling the
  requested transaction
• ____OIG SAS query for all transactions
• Other
• ____ ITFLOCK report (identified report) related
  to the LX paid document sited above.
• Certification Statement
• I have reviewed the enclosed package and have
  determined that it complies with the data
  requested and with generally accepted
  professional standards for clarity, completeness
  and accuracy.
• _______________________
• Unit Financial Manager
• ________ __________
• Date Phone

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Audit Status Meeting Agenda

• KPMG Financial Audit Team
• Planned Audit Procedures for the Next 2 Weeks
  (9/8 to 9/21)
• Begin and complete drafting of internal control
  testing NFR for issuance to the OIG for review.
• Begin and complete internal control and
  substantive testing of 6/30/04 accrual
  transactions recorded under CFO Bulletin
  2004-006 as samples are received.
• Begin substantive testing for Undelivered Orders
  (ULO) as samples are received.
• Continue and complete remaining process area
  substantive and/or control testing for the
  following periods (see Attachment A)
• October 1 through March 31 or as of March 31
  and/or
• April 1 to June 30 or as of June 30.
• Assess the financial statement audit
  implications, if any, of negative IT general
  control and process level control results from
  USDA audit results.

• Complete review of 6/30/04 and 7/31/04 abnormal
  balance/account relationship analysis as well as
  begin review of subsequent periods.
• Outstanding Requests for Information from Forest
  Service
• Attachment A (Sample Support)
• PBC Items
• None to date
• Audit Steps Accomplished since August 25, 2004
  (last status meeting)
• Worked with FS to reconcile and reformat the ULOs
  extract. An audit adjustment will be posted to
  the audit difference schedule for unmatched
  records.
• Issued sample for ULOs (as of 7/31/04) on
  September 2, 2004.
• Issued sample for accruals recorded under CFO
  Bulletin 2004-006 as of June 30, 2004.
• Completed internal control field site testing at
  the WO.

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Audit Status Statistics
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END

• Questions or Comments ?