POSSIBLE NONCOMPLIANCE RISK FACTORS: Note: In assessing the risk of noncompliance, auditors should consider recent changes to the statutory requirements described in this OCS step. This statute and the related 2004 OAG Opinion contain intricate requirements and interpretations. What control procedures address the W/P In determining how the government ensures compliance requirement? Ref. compliance, consider the following: Policies and Procedures Manuals, Knowledge and Training of personnel Time summaries / timecards Legislative and Management Monitoring Management’s identification of changes in laws and regulations Management’s communication of changes in laws and regulations to employees Suggested Audit Procedures - Compliance (Substantive) Tests: Document how the township records the time spent on each township service. Recompute selected fiscal officer allocations of trustee salaries or per diem amounts to each fund. Trace time or services performed to time or activity sheets, if used. Agree selected postings of the salaries from step 2 to the township’s check register. Note: A failure to document the time spent on township tasks would constitute a scope restriction on the allocation of trustee salaries. This could affect our financial statement opinion, if the undocumented allocation is material to the financial statements. Audit implications (adequacy of the system and controls, and the direct and material effects of non-compliance, effects on the audit opinions and/or footnote disclosures, significant deficiencies/material weaknesses, and management letter comments): Section E: Counties and Law Libraries 6-10 Compliance Requirement: Ohio Rev. Code §315.12 Allocating motor vehicle license and fuel tax receipts to support the county engineer (County Only)
POSSIBLE NONCOMPLIANCE RISK FACTORS: Note: In assessing the risk of noncompliance, auditors should consider recent changes to the statutory requirements described in this OCS step. This statute and the related 2004 OAG Opinion contain intricate requirements and interpretations. In determining how the government ensures compliance, consider the following: What control procedures address the compliance requirement? W/P Ref. Policies and Procedures Manuals, Knowledge and Training of personnel Time summaries / timecards Legislative and Management Monitoring Management’s identification of changes in laws and regulations Management’s communication of changes in laws and regulations to employees Suggested Audit Procedures - Compliance (Substantive) Tests: Document how the township records the time spent on each township service. Recompute selected fiscal officer allocations of trustee salaries or per diem amounts to each fund. Trace time or services performed to time or activity sheets, if used. Agree selected postings of the salaries from step 2 to the township’s check register. Note: A failure to document the time spent on township tasks would constitute a scope restriction on the allocation of trustee salaries. This could affect our financial statement opinion, if the undocumented allocation is material to the financial statements. Audit implications (adequacy of the system and controls, and the direct and material effects of non-compliance, effects on the audit opinions and/or footnote disclosures, significant deficiencies/material weaknesses, and management letter comments): Section E: Counties and Law Libraries 6-10 Compliance Requirement: Ohio Rev. Code §315.12 Allocating motor vehicle license and fuel tax receipts to support the county engineer (County Only)
OCSchapter6_other_direct_material_laws_Sept10.docx