Notes on audit…
The first thing asked for was board minutes for the year being audited
The statement templates by SBCTC are just a starting point, there will be things you will have to
add or remove – especially in the notes section
Be ready and able to substantiate any large numbers on the statements
 List of reports I used:
o GA1331, GA1332 & GA1335
o GA2104 Summary of Receipts, Transfers & Fund Balances
o GA3234 Program/Object Expenditure Summary
o We have a G/L query for FMS Query and had IT give us our entire list of
transactions for the fiscal year. Used pivot tables to confirm amounts and
research problems. (Become close friends with pivot tables – they’re awesome)
Keep a list of and substantiation for any adjusting entries that you made
Process used for creating the financial statements – who was involved in what processes
Our auditors spent a large amount of time on:
 Payroll
o The auditor sat with each person in payroll to observe the processes and
procedures used during payroll uploads and calculations
o Contracts – a sampling of contracts were reviewed in comparison to pay
calculations
o Payroll authorizations – a sampling was reviewed for consistency with pay
calculations and coding
o The auditors started out with the numbers they obtained from the annual
SAO data uploaded for total of all deductions
o PS1330 for one month was checked against HCA reconciliations using the
CR5605 and CR6071A along with our own reconciling spreadsheet
o The PS1645 and the PS1710A was compared to the PS1315
o The challenge was that they had college and employee amounts intermixed
 Cash
o Cash controls
o Bank Statement Reconciliation
o Points of receipting
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o processes
Fixed Assets
o Double check your CR2128 against the detail lists. We found that some items
were dropping off
o We had a challenge because there was no report that showed how much
depreciation was calculated for each asset – this has been solved by the
SBCTC delivering the calculation report for the CR2128 each year and should
solve this issue
o Substantiate Library Expenditures
o Did you capitalize all the items you should have?
Internal Control
o Processes – who has access to what
 User Access and how often access is reviewed
 How is access granted and authorized
o Reviewed a select screen from FMS and who had specific levels of
authorization from SAO annual data dump
Sub ledgers
o Prove balance to Control Accounts
Tuition Calculations
o BM1741 report – unofficial enrollment report
o Tuition and fees listing
Grants and Contracts were reviewed to ensure that revenue and expenses were
recognized appropriately
They met with OAR to determine the following
o How is a student's status validated?
o How does admissions assure it has been accurately posted to the Student
Management System (SMS)?
They reviewed that GA2102 Revenue Distribution Table for a specific period
Direct Loans and G5 Reconciliation
Be ready to substantiate the Discounts & Allowances Worksheet amounts