Sneak Preview: Effective Policies Can Reduce Audit Findings

June 7, 2012 | By Jerry Ashworth | Post a Comment

(The following was excerpted from an article in the Single Audit Information Service.) Recipients of federal funds can reduce Office of Management and Budget Circular A-133 single audit findings by developing effective policies and procedures that specifically address the compliance areas and controls that their auditors will be reviewing, according to a key official from the city of St. Petersburg, Fla.

Wayne Finley, community and grants development officer for the mayor’s office in St. Petersburg, told attendees at the National Grants Management Association’s annual training conference that grantees should develop compliance policies and procedures that incorporate their program’s applicable Circular A-133 Compliance Supplement requirements based on the matrix in Part 2 of the supplement. They also should address the internal control risk factors included in the Committee of Sponsoring Organization of the Treadway Commission (COSO) framework.

“Most findings relate to inadequate policy and procedures so you need to create an administrative program in your organization that incorporates the A-133 compliance requirements and the internal control framework as your foundation,” Finley said. “These are the things your auditor is going to look at and use as they assess every single audit element when they come to your organization. That’s what they use to obtain an understanding of whether or not your internal controls are sufficient and how to plan out their audits.”

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