INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES

Transcription

1 d^^ GRIFFIN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS Stephen M. Griffin, CPA Rbert J. Furman, CPA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES T the Bard Members Luisiana State Bard f Scial Wrk Examiners Batn Ruge, Luisiana We have perfrmed the prcedures enumerated belw as they are a required part f the engagement. We are required t perfrm each prcedure and reprt the results, including any exceptins. Management Is required t prvide a crrective actin plan that addresses all exceptins nted. Fr any prcedures that d nt apply, we have marked "n/ applicable*^ Management f the Luisiana State Bard f Scial Wrk Examiners (the Bard) is respnsible fr its financial recrds, establishing internal cntrls ver finandal reprting, and cmpliance with applicable laws and regulatins. These prcedures were agreed t by management f the Bard and the Legislative Auditr, State f Luisiana, slely t assist the users In assessing certain cntrls and in evaluating management's assertins abut the Bard cmpliance with certain laws and regulatins during the year ended June 30,2011. This agreed-upn prcedures engagement was perfnned in accrdance with attestatin standards established by the American Institute f Certified Public Accuntants and applicable standards f Gvernment Auditing Standards. The sufficiency f these prcedures is slely the respnsibility f the specified users f this reprt Cnsequently, we make n representatin regarding the sufficiency f the prcedures described belw either fr the purpse fr which this reprt has been requested r fr any ther purpse. General O O CD C QJ -t; "5 E -^ ^ -d S ^ S g s ^ ^-C ^ tfl ^ 0) ^ I 5 -tr CO.b: _ CO O ^ t C (/I -c; ^ Q. >- -J y= ^ - ^ CO.. ^. _ -_ (D ^, ' CD CD ft, x: CD C Q,^ JU ^ -^ ^ < C 1^ t.j (D O -r^ CO it: fu CsJ 1. Determine if there are adequate written plicies and prcedures fr the primary financial/business functins f the entity (budgeting, receipts, purchasing, disbursements, payrll/persnnel, cntracting, travel, related parties, and ethics). Written plicies and prcedures were reviewed and determined t be adequate fr all primary financial/business functins. Using the financial statements r AFR, perfrm analytical prcedures cmparing current and prir year financial statements, by line item. Identify and btain explanatins fr variances f 10% r greater fr line items that are 10% r mre f the respective ttal assets, liabilities, equity, revenues, r expenses. Explanatins were btained fr all variances f 10% r greater fr line items that were 10% r mre f the respective ttal assets, liabilities, equity, revenues, and expenses. ^ :3 j y - -- ^ &. O CL POST OFFICE BOX 983 MANDEVILLE, LA NORTH CAUSEWAY BLVD., SUITE 200 AAANDEVILLE, l^ PHONE: (985) FAX: (985)

2 Cash 1. Prepare a prf f cash fr the perid cvered by the financial statements. A prf f cash was prepared fr the perid cvered by the financial statements withut exceptin, 2. Determine if cash cllectin respnsibilities are adequately segregated t ensure that the persn respnsible fr cash cllectins Is nt respnsible fr psting accunts receivable r making depsits. All cash cllectin respnsibilities are adequately segregated. 3. Determine If bank recnciliatins have been prepared fr all mnths In the perid cvered by the financial statements. Determine if there is evidence f management review f the bank recnciliatins. Determine If the recnciled balance fr the final mnth f the fiscal year agrees t the general ledger. Bank recnciliatins have been prepared fr all mnths in the perid cvered by the financial statements. Management did nt indicate apprval f bank recnciliatins in the perid cvered by the financial statement. The recnciled balances fr the final mnth f the fiscal year did agree t the general ledger. Credit Cards 1. Obtain frm management a listing f all active credit cards (and bank debit cards if applicable) fr the perid under examinatin, including the card numbers and the names f the persns wh maintained pssessin f the cards. A list f all active credit cards fr the perid under examinatin was btained frm management 2. Obtain the mnthly statements fr all credit/debit cards used during the perid under examinatin and select fr detailed review the largest (dllar amunt) statement fr the tw cards with the mst (dllar amunt) activity: A Obtain the entity's supprting dcumentatin fr the largest purchase/charge shwn n each selected mnthly statement: Determine If each purchase Is supprted by: An riginal Itemized receipt (i.e., identifies precisely what was purchased) Fr each purchase examined, the charge was supprted by an riginal itemized receipt

3 Dcumentatin f the business/public purpse (Nte: Fr meal charges, there shuld als be dcumentatin f the Individuals participating) Fr each purchase examined, the business purpse fr each charge was clearly dcumented, Other dcumentatin as may be required by plicy (e.g., purchase rder, authrizatin, etc.) Fr each purchase examined, there was n additinal ther dcumentatin required by plicy. Determine if selected purchases effectively circumvented the entity's nrmal prcurement/purchasing prcess and/r the Luisiana Public Bid Law (l.e., large r recurring purchases requiring the slicitatin f bids r qutes). Fr the purchases examined, we determined the purchases did nt effectively circumvent the Bard's nrmal prcurement/purchasing prcess r the Luisiana Public Bid Law. B. Detennine if there is evidence f management review f the tw selected statements. There was evidence f management review fr the tw statements selected. Travel and Expense Reimbursement 1. Obtain a listing f all travel and related expense reimbursements during the perid under examinatin and trace t the general ledger fr cmpleteness. Select fr review the three persns wh were reimbursed the mst mney: The list f all travel and related expense reimbursements was btained and traced t general ledger withut exceptin. A. Obtain all f the expense reimbursement reprts f each selected persn, including the supprting dcumentatin, and chse the largest expense reprt frm each persn t review in detail: Determine if each expenditure is: Reimbursed in accrdance with written plicy (e.g., rates established fr meals, mileage, ldging, etc.) and applicable laws All expenditures were reimbursed in accrdance with written plicy. Fr an apprpriate and necessary business purpse relative t the travel All expenditures reimbursed were fr apprpriate and necessary business purpses.

4 Determine if each expenditure is supprted by: An riginal itemized receipt (l.e.^ Identifies precisely what was purchased) All expenditures were supprted by an riginal itemized receipt Dcumentatin f the business/public purpse (Nte: Fr meal charges, there shuld als be dcumentatin f the individuals participating) All expenditures dcumented the business/public purpse f the expenditure, Other dcumentatin as may be required by plicy (e.g., authrizatin fr travel, cnference brchure, certificate f attendance, etc.) Nt applicable. Determine if each expense reprt (including dcumentatin) was reviewed and apprved, In writing, by smene ther than the persn receiving reimbursement. All expense reprts reviewed were apprved in writing by smene ther than the persn receiving the reimbursement Cntracts 1. Review accunting recrds (e.g., general ledgers, accunts payable reprts, etc.) fr the perid under examinatin t identify individuals/businesses being paid fr cntracted services (e.g., prfessinal, technical, etc.). Select the five "vendrs" that were paid the mst mney during the perid and determine if there is a frmal/written cntract that supprts the services arrangement. We reviewed the accunting recrds fr the perid under examinatin t identify individuals/businesses being paid fr cntracted services and selected the five vendrs that were paid the mst mney during the perid. All five vendrs had written cntracts, 2. Obtain a listing f all active cntracts and the expenditures made during the perid under examinatin and trace t the general ledger fr cmpleteness. Select fr detailed review, the largest (dllar amunt) cntract in each f the fllwing categries that was entered int during the perid. (1) Services A list f all cntracts fr the perid was btained and included five cntracts fr services.

5 (2) Materials and supplies Nt applicable. (3) Public wrks Nt applicable. A. Obtain the selected cntracts and the rehited paid Invices and: Determine if the cntract is a related party transactin by btaining management's representatin. We btained management's representatin that the cntracts were nt with a relatedparty. Determine if the transactin is subject t the Luisiana Public Bid Law r Prcurement Cde: If yes, determine if the entity cmplied with all requirements (e.g., slicited qutes r bids, advertisement, selected lwest bidder, etc.) Nt applicable. If n, determine if the entity prvided an pen and cmpetitive atmsphere (a gd business practice) fr the transactin/wrk. Fr the cntracts examined, the Bard did nt seek prpsab frm ther vendrs due t the lng standing relatinships they have with the existing service prviders. Detennine If the cntract was amended. If s, determine whether the riginal cntract cntemplated r prvided fr such an amendment Furthermre, determine if the amendment Is utside the scpe f the ri^nal cntract, and if s, whether it shuld have been separately bid and cntracted. There were n amendments t the cntracts. Select the largest payment frm each f the 3 largest cntracts selected abve and determine if the invlce(s) received and payment cmplied with the terms and cnditins f the cntract. The payments reviewed cmplied with the terms and cnditins f the cntracts. Determine if there is dcumentatin f bard apprval, if required. The cntracts were apprved by the Bard in a public meeting.

6 Payrll and Persnnel Obtain a listing f emplyment cntracts/salaries In frce during the perid under examinatin and trace t the general ledger fr cmpleteness. Select the five highest paid emplyees and: A list f emplyment cntracts/salaries in frce during the perid under examinatin was btained and traced t general ledger withut exceptin. Determine If payments issued during the perid under examinatin were dne In strict accrdance with the terms and cnditins f the cntract r pay rate structure. Payments issued during the perid under examinatin were dne in strict accrdance with the terms and cnditins f the cntract r pay rate structure. Determine If changes made t hurly pay rates/salaries during the perid under examinatin were apprved In writing and in accrdance with plicy. Changes made t hurly pay rates/salaries during the perid under examinatin were apprved in writing and in accrdance with plicy. Select the attendance and leave recrds fr ne pay perid In which leave has been taken by at least ne emplyee and: Determine if all emplyees are dcumenting their dally attendance and leave (e.g., vacatin, sick, etc.). (Nte: Generally, an elected fficial is nt eligible t earn leave and des nt dcument his/her attendance and leave. Hwever, If the elected fficial is earning leave accrding t plicy and/r cntract, the fficial shuld dcument his/her daily attendance and leave.) The Bard utilizes a payrll service that features an nline time and attendance feature. All emplyees f the Bard are required t utilize this service t keep track f their time. We reviewed reprts fr the year nting that time and attendance recrds are being maintained. Determine If supervisrs are apprving. In writing, the attendance and leave f all emplyees. Supervisrs are required t apprve all time and attendance reprts thrugh the nline system fr all emplyees. Determine if the entity is maintaining accurate written leave recrds (e.g., hurs earned, hurs used, and balance available) n all eligible emplyees. Leave recrds are maintained in the nline system by the payrll service based n the Bard's annual and sick leave plicies. The service appears t accurately track leave time.

7 3. Select the tw largest terminatin payments (e.g., vacatin, sick, cmpensatry time, etc.) made during the perid under examinatin. Determine if the jpayments were supprted by adequate dcumentatin, made in strict accrdance with plicy and/r cntract, and prperly apprved. Budget Nt applicable. 1. Obtain a cpy f the legally adpted budget and all amendments. We btained a cpy f the legally adpted budget and all amendments withut exceptin. 2. Trace the budget adptin and amendments t the minute bk. We traced the budget adptin and amendments t the minute bk withut exceptitt 3. Cmpare the ttal revenues and ttal expenditures f the final budget t actual ttal revenues and ttal expenditures n the financial statements r AFR. Reprt variances f 10% r greater. Debt Service We cmpared the ttal revenues and ttal expenditures f the final budget t actual ttal revenues and ttal expenditures n the financial statements and nted n variances greater than 10%, 1. If debt was issued during the financial statement perid, verify that State Bnd Cmmissin apprval was btained, as applicable. Nt applicable - the Bard did nt issue any debt during the fiscal year. 2, Determine cmpliance with applicable debt cvenants. Nt applicable - the Bard did nt issue any debt during the fiscal year. Crrective Actin 1. Obtain management's respnse and crrective actin plan fr any exceptins nted In the abve agreed-upn prcedures. Cash Finding: Management did nt indicate apprval f bank recnciliatins in the perid cvered by the financial statements. Respnse: Management will indicate apprval f all bank recnciliatins in the future.

8 Cntracts Finding: Fr the cntracts examined, the Bard did nt seek prpsals frm ther vendrs due t the lng standing relatinships they have with the existing service prviders. Respnse: Fr existing annual service cntracts less than $50,000, the Bard will evaluate the perfrmance and cst f each service prvider at their renewal date and determine if they will renew the cntract If an existing service prvider chses t terminate the relatinship at the end f a cntract r the Bard is nt satisfied with the perfrmance r cst, the Bard will slicit prpsals t replace that service prvider. Fr annual service cntracts in excess f $50,000, the Bard will slicit prpsab. We were nt engaged t perfrm, and did nt perfrm, an audit, the bjective f which wuld be the expressin f an pinin n management's assertins. Accrdingly, we d nt express such an pinin. Had we perfrmed additinal prcedures, ther matters might have cme t ur attentin that wuld have been reprted t yu. This reprt is Intended slely fr the use f management f the Bard and the Legislative Auditr, State f Luisiana, and shuld nt be used by thse wh have nt agreed t the prcedures and taken respnsibility fr the sufficiency f the prcedures fr their purpses. Under Luisiana Revised Statute 24:513, this reprt Is distributed by the Legislative Auditr as a public dcument August 31,2011