Special Audit Testing Requirements Sample Clauses

Special Audit Testing Requirements. 3.1. It is essential that the audit firm test the ELC’s monthly reconciliation of its financial records to the SSIS. As an alternative, and upon written authorization from DEL, the auditors may test acceptable equivalent alternative supporting documentation files of the ELC, if temporary transitioning SSIS system functionality issues occur. To report on the audit tests performed, the auditor must include a statement in the Schedule of Findings and Questioned Costs confirming the following: (a) the ELC staff performs this reconciliation monthly; (b) the ELC has processes in place to identify and correct errors noted during the monthly reconciliation process; and (c) the ELC’s financial records and the SSIS records (or acceptable equivalent documentation files tested/audited upon issuance of written authorization from DEL) were reconciled and in agreement as of the annual program year end (June 30). Finally, a statement must be included to indicate that the auditor's work papers include documentation to verify tests of these tasks were performed and such work papers are available for review by DEL staff upon request. 3.2. If such testing was not completed, or if these statements are missing from the annual audit report, the auditor's annual procedures will be considered incomplete/deficient and the ELC will receive notice of such in the Division’s annual Management Decision. 3.3. All funds administered by the ELC must be included in the audit coverage. This includes funds provided to any auxiliary entity over which the ELC exercises controlling influence, such as a foundation. For purposes of the agreement, all foundations or other similar entities are considered affiliated organizations and, in some instances, may need to be classified as a component unit. 3.4. For any affiliated organization, at a minimum the audit report must disclose the entity's mission/purpose and summarized financial data including total assets, liabilities, net assets, revenues, expenditures, and the entity's relationship to the ELC’s activities. The auditor may need to provide other disclosures and presentations (such as consolidated financial statements) as appropriate after giving proper consideration of applicable accounting standards pronouncements regarding reporting of related entities, such as FASB Statement of Position (SOP) 94-3.