HOW TO PREPARE FOR
A CS356 AUDIT
Presented By:
Mary K. Clesi
County of Santa Clara DCSS
June 25, 2009
Quarterly Fiscal Officers Forum
AUDIT PROCESS
What will be Audited?
 Expenses claimed
 Abatements/Program Income reported
 Capital assets and depreciation
 Health Insurance and Performance
Incentives
 Excess Funds/Fund Balance
 Internal Controls over CS356 Claim Process
AUDIT PROCESS
Auditor will sample the following:
• Expenditures claimed on the CS356
• Trace to source - General Ledger, Payroll
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Registers, timesheets, etc.
Program related, properly supported and paid
during the certification period
Approval/authority process
Contract monitoring process
Personnel records
May conduct staff interviews
AUDIT PROCESS
 Program Income reported on the CS356
 Interest
 Review methodology and allocation process
 Sample each type of program income
 Laboratory Fees Collected
 Sub-Lease Payments
 Other Miscellaneous Revenue
 Undistributed Collections – Escheatment
PREPARING FOR THE AUDIT
 Notify County Auditor/Controller of pending audit
 Notify Other County Agencies of pending audit
 Fleet and Facilities (Building Lease)
 County agency responsible interest allocation, etc.
 Confirm copies available of allocation letters from
California DCSS
 Confirm monthly advance documentation available
and in order; Affidavits of Deposit, etc. as well as
worksheets summarizing revenue.
PREPARING FOR THE AUDIT
 Time Studies
 Confirm properly prepared, signed, and dated
 Time Certifications
 Semi Annual - Twice per fiscal year (1st and 3rd quarter9/30 and 3/31)
 Detailed report/list expenditures claimed on the
CS356
 Detailed report/list of program
revenue/abatements reported on the CS356
PREPARING FOR THE AUDIT
 Review capital purchases
 Confirm capital equipment properly recorded in
County property records.
 Confirm depreciation rules followed – LCSA Letter 0524
 Review contract monitoring process
 Genetic testing, Service of Process, Common area
maintenance charges, etc.
 Report summarizing program revenues and
expenses as well as resulting changes to fund
balance
PREPARING FOR THE AUDIT
 Written procedures on preparing the CS356
claim
 How bridging reports/worksheets prepared?
 Confirm bridging reports/worksheet reference
supporting documentation relied upon to
produce reports
PREPARING FOR THE AUDIT
Final Words of Wisdom…….
 Plan ahead
 Resources, Space, Equipment, etc.
 Be prepared
 Gather/prepare as much documentation as you can prior to
the Auditors arrival
 Review documentation, reports, worksheets for availability
and accuracy
 Understand procurement process including building lease
 Confirm compliance with County contract monitoring process
K I L L T H E M W I T H K I N D N E S S !
Q U E S T I O N S ??
HOLD UNTIL AFTER CYNTHIA’S PRESENTATION