Office of Inspector General: Audits, Planning, and Mission Overview
Office of Inspector General (OIG) for the National Endowment for the Arts conducts independent audits, reviews, and investigations to ensure economic, efficient, and effective delivery of the Arts mission. Learn about the OIG audit processes, phases, common findings, and how to prepare for an audit. Explore the OIG's mission, vision, and purpose in promoting compliance with grant laws and regulations.
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Presentation Transcript
National Endowment for the Arts OFFICE OF INSPECTOR GENERAL (OIG)
Office of Inspector General Mission Vision Purpose of OIG Audit Annual Audit Planning Process The OIG Audit -- Three Phases Audit Follow-up Common Audit Findings Guidance and Resources How to Prepare for an Audit
Office of Inspector General OIG Mission Conduct independent audits, reviews, and investigations to help the Arts Endowment deliver its mission economically, efficiently, and effectively, and with integrity without fraud waste and abuse.
Office of Inspector General OIG Vision Perform high quality and timely work that helps the Arts Endowment, its awardees, and partners to administer their programs in compliance with grant laws, regulations, policies and procedures
Office of Inspector General Purpose of OIG Audits To assess whether awardees are complying with Federal grant management and financial requirements, including whether reported costs are reasonable, allocable and allowable, and to recommend ways to improve awardee compliance.
Office of Inspector General Annual Audit Planning Process Identify Audit Universe total population of grants awarded by the Arts Endowment Conduct a Judgmental Risk Assessment Time since last audited by the OIG Total funding awarded Internal/External Audit Referrals Audit Plan also includes Congressionally Mandated Audits and Carryover Audits (Grant Audits continued from the Prior Year)
Office of Inspector General The OIG Audit -- Three Phases Planning Phase Fieldwork Phase Reporting Phase
Office of Inspector General Planning Phase Steps Send Audit Notification Letter advising awardee of the audit Establish Audit Objective and Scope Select Awards to be included in the Audit Review awardee s information in Art s Endowment Files Review most recent prior year audit(s) Establish entrance conference meeting date, time and location Send email requesting information needed for the audit with the Organizational Internal Controls and Financial Management Operations Questionnaire Organization Chart Board Members -- current and active during the audit period
Office of Inspector General Planning PhaseSteps(continued) Most Recent Audited Financial Statements Accounting Policies and Procedures Expenditure reports and general ledgers supporting outlays reported on the FFR for each program selected for review Payroll ledgers for each program selected for review Chart of Accounts Current Organization Budget Board meeting minutes for the past two years Section 504 Self-Evaluation Policies and Procedures for the Management of Federal Awards
Office of Inspector General Planning Phase Steps (continued) Reconcile Costs Ensuring general ledgers and expenditure reports match the FFRs Document Internal Controls Gathering, reviewing and documenting organizational policies and procedures Assess Risk Identifying and documenting any areas of risk Select financial transactions and sub-recipients for testing
Office of Inspector General Fieldwork Phase Work performed virtually or at the awardee s site: Conduct entrance conference to explain audit scope and objective and answer any questions about the audit process Test controls in place to ensure accuracy of cost reasonableness, accuracy, allocability, and allowability Test costs transactions Test sub-recipient monitoring
Office of Inspector General Fieldwork Phase(continued) Determine preliminary findings and recommendations Conduct preliminary exit conference to discuss preliminary findings and recommendations and to answer any questions about the audit Work performed Off-site Continue reviewing information and request additional documentation, as needed Finalize potential findings and recommendations
Office of Inspector General Report Phase Draft report with findings & recommendations Submit draft report for supervisory review and approval Issue draft report to Arts Endowment for review Request comments within 10 calendar days Incorporate Arts Endowment comments into draft report, as appropriate Schedule and conduct a phone exit conference with auditee
Office of Inspector General Report Phase (continued) Issue draft audit report to auditee Request response on whether the auditee concurs or non-concurs with findings and recommendations within 10 calendar days Request detailed explanation for any non-concurrence Incorporate auditee responses into draft report Prepare and issue final report to the Agency and auditee Request corrective action plan from the auditee, due in 30 days, to address findings & recommendations Post final report on the OIG website within 3 business days
Office of Inspector General Audit Follow-up Arts Endowment Audit Follow-up Official receives auditee corrective action plan addressing report findings and recommendations within 30 calendar days of final report Auditee submits evidence of corrective action taken to the Audit Follow-up Official -- ideally within 6 months of the final report issue date
Office of Inspector General Audit Follow-up (continued) Audit Follow-up Official and OIG review corrective action(s) taken by the auditee Audit Follow-up Official requests additional evidence of action(s) taken, if needed Audit Follow-up Official issues a memorandum closing the recommendation once sufficient evidence of corrective action(s) taken is received Report any unresolved recommendations beyond 6 months of the final report in IG semi-annual report to the Congress
Office of Inspector General Common Audit Findings Missing policies and procedures for managing Federal awards. Not accurately reporting costs on the Federal Financial Report. Missing supporting documentation for costs charged to awards. Charging unallowable costs to awards. Not adhering to suspension and debarment requirements. Not maintaining a Section 504 Self-Evaluation on file.
Office of Inspector General How to Prepare for an Audit Awardees should: Identify Federal award requirements Establish policies, procedures, and systems that addresses the award requirements Train staff on award requirements
Office of Inspector General Guidance and Resources 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards: https://www.ecfr.gov/cgi-bin/text- idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl Manage Your Award: https://www.arts.gov/grants/manage- your-award NEA OIG website: www.arts.gov/oig
