2002 AICPA Governmental Accounting and Auditing Update Conference

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2002 AICPA Governmental Accounting and Auditing
Update Conference

• August 26 28, 2002
• Renaissance Hotel
• Washington, DC

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Tools for Maturing the Financial Statement Audit
Process

• Thomas N. Cooley
• Chief Financial Officer
• National Science Foundation

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A word about NSF

• Independent Agency
• Supports basic research and education
• Uses grant mechanism
• Low overhead highly automated
• National Science Board

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1. Planning coordinating a comprehensive
audit plan with management, the inspector
general, and the independent public accountant

• Effective Planning Requires
• Consultation with OIG
• Agreement with OIG on Timeline Deliverables
• Agreement with OMB (RMO and OFFM) on Timeline and
  Deliverables
• Monthly Discussion of Timetables at ACC Meeting
• Joint Submission to OMB of Performance and
  Accountability Report (End Product)

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1. Continued

• Case Study
• NSF/OIG Joint Memo to OMB Dated
• June 13, 2002 Covered
• Close NSFs BooksOctober 26, 2002
• Performance Measures in MDA to KPMGDecember 9,
  2002
• Final Audit ReportJanuary 16, 2003
• Final GPRA Performance and Accountability
  ReportFebruary 1, 2003

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Communicating working status meetings and
CFO/IG direct involvement to keep the process
moving

• Three Part Working Group Meetings to Handle
  Detail Issues (OIG, KPMG, and MGMT)
• OIG Submits Audit Findings as Early as Possible,
  Even for the Current Fiscal Year, to Provide
  Management Time to Address /Rectify Issues, where
  Appropriate
• Joint Oversight Visits to Grantees

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Financial Systems automated, integrated, and
timely centralized reporting is critical to
completing audits

• Updated FAS to Client Server Environment,
  Reporting Database
• 1975 Honeywell
• 1983 HP
• 1985 1990 PC on every desk, local area
  networks, email, internet access
• 1993 IBM Mainframe
• Updated Client Server 2001

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3. Continued

• Set Audit Schedule Deliverables
• EIS Integrated Budget and Performance Reporting
• Ongoing
• Revisions
• Model for Integrating Budget and Performance
  (examples)
• Dwell Time
• Award and Size/Duration

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4. Audit Committees NSF has one, and its role
is significant

• Established in Late 1997, Revised in 2000
• Monthly Meetings Throughout the Year Involving
  All Stakeholders
• Incorporates All Effected Parties, i.e. CFO, CIO,
  IG, Auditors, General Counsel and etc.

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4. Continued

• 1997 Version
• NSF COTR
• Audit Paid by NSF
• CFO, OIG Participants
• Run Jointly by OIG and Management
• No FISCAM
• Atmosphere of Cooperation

• 2000 Version
• OIG COTR
• Audit Paid by NSF
• Low Level Participants
• Run by OIG
• FISCAM Included
• Information Atmosphere

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5. Future Challenges the Presidents
management agenda, Getting to Green, means
accelerating reporting dates

• On Demand General Ledgers (runs overnight upon
  request)
• Automated Financial Statement Preparation, Cross
  Walked from Data Warehouse Environment
• Automated Closing Entries and Accruals
• Interagency Funds/Advances
• Human Capital for Financial Management

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Continued Data Warehouse Environment

• Ending General Ledger Balances warehoused into an
  Access database outside of our main financial
  system.
• Accrual / Adjusting entries posted in this Access
  database to generate Adjusted Ending Balances.
• Adjusted Ending Balances closed utilizing an
  automated closing process (i.e., soft-close).
• Financial Statements automatically generated
  utilizing crosswalk specifications.
• This process enables NSF to create interim
  financial statements efficiently without
  interfering with normal operations.

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National Science FoundationWHERE DISCOVERIES
BEGINOur Motto ask early, ask often

• TCooley_at_nsf.gov
• (703) 292 - 8200
• www.nsf.gov