FOCUS Department of Accounts Update May 9, 2006 David A. Von Moll State Comptroller
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Transcript of FOCUS Department of Accounts Update May 9, 2006 David A. Von Moll State Comptroller
Department of Accounts
FOCUS
Department of Accounts Update
May 9, 2006
David A. Von Moll
State Comptroller
Department of Accounts
Agenda
Accounting and Reporting Service Area Structure Payroll Operations E-Commerce Other Systems Initiatives Internal Control Standards
Department of Accounts
Accounting and Reporting
GL ReviewCentral review of irregular balances
Petty Cash ReviewsLow turnover balancesWeak oversight
New Reconciliation PoliciesNot enough to identify and correct differences between CARS
and agency systemsMust ensure CARS is correct
Decentralization of Financial RecordsReauthorize Memorandums of Understanding (MOUs)Disbursement Reviews
Department of Accounts
Accounting and Reporting
Cost Recovery Audit$5.9 billion - annual spending subject to review – FY 2002-2004Duplicate/Erroneous CARS Payment File Review (data mining)
$257,000 – confirmed to-date by agency, vendor validation pending
$113,000 – collected to-dateStatement Letter Review (unclaimed credits)
$320,000 – confirmed to-date$40,000 – collected to-date
Contract Review (price compliance)
HE Decentralized for Accounts PayableAll data files received – some not yet scanned for duplicatesStatement letters – most pending Contract review – pending
Department of Accounts
Accounting and Reporting
Financial Statement Directive – to be issued May 15, 2006 New FY 06 GASBS
• No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries• Determine whether impairment has occurred
• Environmental factors, technological changes, obsolescence• Decline in service utility outside normal life cycle
• Report permanently impaired assets no longer in use at lower of carrying value or fair value with footnote disclosures
• Recognize Impairment Loss net of insurance recoveries for assets permanently impaired during FY 2006
• Restate Beginning Net Assets for assets permanently impaired in prior years and not written down
• Report Insurance Recoveries for prior year asset impairments (or other recoveries) as program revenue
Department of Accounts
Accounting and Reporting
New FY 06 GASBS, continued
• No. 46, Net Assets Restricted by Enabling Legislation• Report portion of net assets that have limitations imposed
by enabling legislation as restricted net assets• Enabling legislations is clarified to mean a restriction an
external party such as citizens, public interest groups or the courts can compel the government to honor
• No. 47, Accounting for Termination Benefits• Recognize liability and expense in accrual-based
statements for:• Voluntary termination benefits when employees accept offer
and amounts can be estimated• Involuntary termination benefits when a plan of termination
has been approved by management, the plan has been communicated to employees and amounts can be estimated
New Audit Standards
Department of Accounts
Service Area Structure
Program/Subprogram/Element changing to Program/Service Area/Element for all FY 07 transactions in both CARS, FAACS and CIPPS
For CIPPS this means for the June 10-24 payroll, not before Screen and report changes Interface file layouts will not change other than to
rename the Subprogram field However, may want to test CARS interface if agency accounting
systems change
Payroll Contact – Cathy [email protected]
or see related Payroll Bulletin for more details
CARS Contact – Kim [email protected]
Department of Accounts
Payroll Operations
SSN Privacy Plan to convert CIPPS Employee ID from SSN to PMIS/BES “person
number”
PMIS/CIPPS Interface Name, address, various salary and position information
Payroll Debit Card Phased roll-out
Foreign Nationals Failure to obtain proper documentation fines - $2,500 Department of Homeland Security (DHS) increasing I-9 audits I-9 training and assistance available: [email protected]
ORP Retirees Imputed Life W-2 reporting
Department of Accounts
E-Commerce
Payroll Debit Card – 20 agency phased roll-out American Express to GE Mastercard conversion –
complete14,000 P-cards, 5,000 employee travel cards, 200 agency
travel cardsWeb-based trainingMonthly teleconference PA meetingsNew oversight tools
Eliminate inactive cards Ensure timely payment Monitor card usage
Rebate
Under-utilization Fee
Department of Accounts
Other Systems Initiatives
Reportline Mandatory conversions complete Remote Print conversion requests complete or scheduled
Lease Accounting System W-2s on Payline Web Site Standards
New-look DOA web site: www.doa.virginia.gov Searchable CAPP
Web Accessibility Standards
Department of Accounts
Internal Control Standards
Agencies and institutions are already required to develop and maintain a…
Sound agency internal control framework to ensure:Resources are used efficiently and effectivelyCommonwealth assets are safeguardedCompliance with laws and regulationsFinancial reporting is timely and accurate
Formal program to assess their agency control framework.
Agency heads must certify to both of these requirements each year.
Department of Accounts
Internal control initiatives are intended to…
Raise the level of internal control emphasis, resource dedication and proficiency among agencies to achieve best practices contemplated by:
Sarbanes-Oxley OMB Circular A-123 COSO/Treadway Commission
COSO – Committee of Sponsoring Organizations – Institute of Internal Auditors, AICPA, and others
Department of Accounts
Perspective
Standards – 26 pages Implementation Tools – 44 pages
Sample Code of Ethics, facilitated workshop plan, risk maps, communications strategies, monitoring activities
Evaluation Tools – 87 pagesSample self-assessment tools, control
self-assessment techniques, surveys and questionnaires for every CAPP topic
Department of Accounts
Types of Issues Raised in ARMICS Feedback
Additional resources needed Cost vs. benefits considerations Documentation clarifications needed Internal auditor independence Achievable deadlines Coordinate with related requirements of other central
agencies (VITA, DPB, APA, others) Scope and authority issues Simplify and other implementation issues Training and orientation sessions needed
Department of Accounts
What’s Next for ARMICS
Resolve scope and authority issues Work with DPB to enhance strategic
planning process – SWOT Analysis Target initial implementation to fiscal
programs
Department of Accounts
Questions?
David A. Von Moll
State Comptroller
804.225.2109