Audit Plan Department of Parks and Recreation Objectives: Determine accuracy of cash balances and integrity of cash accounting

ng process. Determine accuracy of budget development documents and cross-check budget information provided to Department of Finance (Finance). Reconcile information provided to Finance with that provided to the State Controllers Office and that maintained by the State Treasurer. Review travel and payroll procedures; such as overtime, premium pay, vacation buyout, and any other type of incentive payment and determine whether control processes are in place to ensure such payments are proper. Review hiring procedures and determine whether appointments are proper, and whether employees are paid at the proper pay scales for their classifications. Review procurement procedures to ensure appropriate procedures are in place and followed. Scope: All agency Funds Initial Audit Period: Last 3 to 5 fiscal years Establish that: Cash owned by the agency is included on the balance sheet and properly classified by fund source and account. Budget documents are supported by the agencys accounting records. Adequate procedures exist for hiring appointments and related salaries and any forms of premium pay. Adequate procurement procedures exist for purchases and travel expenditures. For example CalCard, Voyager fuel cards, purchases of equipment. Internal Controls: Interview staff and management, including executive management. Review internal controls and separation of duties related to budget information, cash transactions, personnel and payroll practices, contracting and procurements. Verify proper budgeting controls and budget development procedures are followed. Audit Procedures: Financial Reporting Trace year-end financial reports/statements to the general ledger/subsidiary ledger. Verify if agency balances & reports agree with records submitted to/maintained by the state controller and state treasurer. Cash Transactions Test a sample of cash receipts transactions to supporting documentation and determine if amounts were properly applied and properly coded as to fund, account, & fiscal year.

Through analytical procedures, determine that all expected cash is received and subsequently recorded (determine where all incoming cash is going).

Bank Reconciliations Trace general ledger account balances to the bank reconciliations. Trace bank reconciliation balances to treasurers bank statements. Verify validity of unusual/material reconciling items to source documentation. Prepare proof of cash for fiscal year. Budget Development Review budget submissions to Finance for accuracy and completeness. Verify agency followed proper budget development procedures and protocols. Trace submitted budget amounts and details, including Fund balances, to the agencys accounting records and reconcile any differences. Employee Payments Review payroll procedures as they relate to any type of employee incentive payments, such as overtime, premium pay, arduous duty pay, and vacation buyout. Determine whether such payments were proper. Determine whether the accounting for such payments is transparent and properly coded for control agencies to determine propriety. Determine whether any hiring appointments were inappropriate and whether employees were paid at the proper pay scales for their classifications. Procurements Review procurement procedures for equipment, contracts etc. including travel expenses and use of any credit/fuel cards. Conclusion: Determine the correct cash balances by fund and account, to the extent that the accounting records are available and allow such determination. Determine inaccuracies in budget information provided to Finance. Determine the extent of any inappropriate employee payments or appointments. Determine appropriate procedures and controls exist for procurements. Identify the internal controls that failed to detect irregularities (or management override) and recommend corrective actions and changes in procedures