Contributed 7/19/00 by Gary Martin mar03@co.henrico.va.

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INIT W/P Audit Program Steps

H. Expenditure Data Analysis

Objective: To analyze amounts expended either by non-encumbered invoice

or purchase order for larger volume activities and patterns.

H.1. Prepare a section index

H.2. Prepare a section conclusion in terms of the objective.

H.3. Obtain a copy of the fiscal year 1997 Sheriff’s Office Budget Proposal.

a. Update Sheriff’s proposed budget for Jail West, Jail East and Jail Farm to
reflect the Board Approved Budget for each object code.

b. Document approved revisions to the Sheriff’s Office Budget for the

period from July 1997 to March 1998.

c. Identify any deficit balances and document proposed actions by the

Sheriff’s Office to resolve.

H.4. Obtain expenditure data from the FAMIS Operating File, by object
code, for all indexes assigned to the Sheriff’s Office.

a. Analyze expenditure data for fiscal years 1995, 1996 and 1997
using Audit Command Language (ACL) software.

b. Analyze expenditure data for the audit period of July 1997 to

March 1998 using Audit Command Language (ACL) software.

c. Compare expenditures for the period from July 1996 to March

1997 to July 1997 to March 1998.

H.5. Extract the records for Sheriff’s Office expenditures from the monthly
database of transactions exported from the FAMIS Document File and
merge into a single file.

H.6 Obtain non-encumbered invoices from the FAMIS On-line System for
expenditures with checks dated between July 1, 1997 and March 31,
1998. Analyze transactions for:

a. Proper use of payment category selection with emphasis on use of

the OTHER PAYMENTS category.

b. Improper use of non-encumbered invoices to pay for Capital

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Outlay items in excess of $1,000.

H.7 Prepare a schedule of all Sheriff’s Office purchase order payments

processed during the audit period (July 1997 to March 1998).

H.8 Prepare a detailed listing of all non-payroll expenditures posted to

Sheriff’s Office object codes for the period from July 1997 to March
1998.

I. Public Safety Expend System

Objective: To evaluate the effectiveness of the Public Safety Expend System

for budgetary control.

I.1 Prepare a section index.

I.2 Prepare a section conclusion in terms of the objective.

I.3 Prepare a schedule of Expend System strengths and weaknesses based

on a review of system features and discussions with system users.

I.4 Document Expend System capabilities and features.

I.5 Confirm understanding of Expend System features and capabilities with

a transaction walk through.

I.6 Obtain input from Data Processing on continued use of the Expend
System for budgetary control.

I.7 Obtain feedback from the Division of Police on use of Expend System
for budgetary control in their Agency.

I.8 Obtain feedback from the Division of Fire on use of Expend System for
budgetary control in their Agency.

I.9 Communicate conclusions, to the Sheriff’s Office, on continued use of

the Expend System for budgetary control.

I.10 Document all correspondence (memos and e-mail) related to the Expend
System review.

J. Expenditure Testing – Encumbered Payment Processing

Objective: To test statistically selected purchase order payments for proper

procurement, classification, documentation, accountability and
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propriety.

J.1. Prepare a section index.

J.2. Prepare a section conclusion in terms of the objective.

J.3. Select a random sample of encumbered payments processed by the

Acquisition Information Management System (AIM). Perform the
following tests for each randomly selected payment:

a. Verify procurement made in accordance with applicable policies

and procedures [competitive procurement or small purchases
($1,000 or less, $15,000 or less, or $15,001 to $30,000)].
b. Confirm existence of vendor invoice or other supporting
documentation (including delivery of services) attached to
Accounting receiving report copy.
c. Compare and agree the vendor name and amount listed on the
supporting documentation to corresponding purchase order
information.
d. Recalculate and agree payment amount, if applicable.
e. Confirm prompt payment processing by Accounting (with prompt
defined as within 5 business days of receipt).
f. Determine if the payment was properly classified to the correct
object code.

K. Expenditure Testing – Non-Encumbered Invoice Processing

Objective: To test statistically selected non-encumbered invoice transactions

for proper procurement, classification, documentation,
accountability and propriety.

K.1. Prepare a section index.

K.2. Prepare a section conclusion in terms of the objective.

K.3. Select a random sample of non-encumbered invoices. Perform the

following tests for each randomly selected payment:

a. Verify that the non-encumbered invoice (NEI) was signed and

dated by an individual designated by the Agency on the
Authorized Signature Form.
b. Confirm the existence of an invoice or other appropriate
supporting documentation attached to Accounting NEI file copy.
c. Compare and agree the vendor name and amount listed on the
supporting documentation to the corresponding information on
the recorded NEI.
d. Recalculate and agree total NEI amount, if applicable.
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e. Examine Accounting NEI file copy for existence of a documented

review by Accounting prior to payment.
f. Verify that payments represent designated services purchased as
authorized by Section 2.j.(1)(j) or OTHER APPROVED
PAYMENTS listed in Section 2.j.(1)(k) of the Purchasing
Manual.
g. Verify Agency selected the correct payment category.
h. Confirm prompt processing by Accounting (with prompt defined
as within 5 business days of receipt).
i. Determine if the payment was properly classified to the correct
object code.

L. Detailed Testing – Overtime Hours Paid

Objective: To test paid overtime to confirm documented approval by

designated parties based on demonstrated need.

L.1. Prepare a section index.

L.2. Prepare a section conclusion in terms of the objective.

L.3. Judgementally select two payperiods for the period from January 2, 1998
(PP #16) to March 31, 1998 (PP #20) and perform the following tests:

a. Confirm overtime hours worked had been approved in accordance

with the Sheriff’s Overtime Expenditures memo dated January
20, 1998.
b. Recalculate overtime hours paid and rate paid (regular or time and
a half).
c. Document an explanation for any exceptions noted.

M. Confirmation of Fixed Assets

Objective: To determine if the Sheriff’s Office accounts for fixed assets in

accordance with applicable County policies and procedures.

M.1. Prepare a section index.

M.2. Prepare a section conclusion in terms of the objective.

M.3. Obtain any available detailed listings of Sheriff’s Office equipment and
review each list for inclusion of FY98 additions.

M.4. Select a statistical sample of capital items valued at $1,000 or more.

a. Confirm asset existence with consideration given to the adequacy

of safeguarding from loss due to fire, theft or misplacement.
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b. Verify existence of tagging or some numbering of asset.