Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the External Audit topic
No spam. Unsubscribe anytime.
External auditors outline FY2012-13 audit plans; successor agency material weakness highlighted
Summary
KPMG and Macias Gini & O'Connell presented audit scopes and timelines for fiscal-year audits and single audits; auditors noted a material weakness in the Successor Agency—s financial reporting stemming from staffing and system changes following redevelopment dissolution and raised three single-audit issues affecting DPH, Department of Environment and Emergency Management.
External auditors for the city presented their FY2012-13 audit plans to the Government Audit and Oversight Committee and highlighted prior-year findings they will follow up on, including one material weakness related to the Successor Agency to the former redevelopment agency.
Awan Nguyen of KPMG described the firm—s engagement objectives and timeline: the audit is designed to "enable the auditors to express an opinion about whether or not the financial statements have been prepared by management and are presented fairly in all material respects," and audit fieldwork will proceed through January 2014 with financial statements aimed for issuance in October. Nguyen noted KPMG—s responsibility to assess fraud risk and to report significant findings to the committee.
Representatives from Macias Gini & O'Connell (MGO) outlined a material weakness in the Successor Agency related to reduced financial-reporting staffing after the redevelopment agency dissolution and the resultant complexity of reconciliations and reporting. Leo Levinson, deputy director for finance at the Successor Agency, said the agency is transitioning accounting into the city—s FAMIS system, cross-training staff and engaging the Comptroller—s Office to address the weakness.
MGO also described three single-audit findings: DPH had not obtained DUNS numbers consistently from certain subrecipients (the department reported corrective actions), Environment used a proposed indirect cost rate for a Department of Energy grant later found to differ from the approved rate (the department reported it has rectified the issue), and the audit flagged weaknesses in grant-reporting review processes that the Department of Emergency Management said it has remedied by adding a manager to review reimbursement claims before submission.
Committee members pressed auditors on timing, scope changes and when the committee should expect final reports. Auditors said scope can change during fieldwork based on materiality and evolving events; the single audit reports are expected in early 2014. The committee filed the item to the call of the chair for follow-up.
The presentation and departmental responses will form the basis for audit follow-up this fiscal year.
