Fall Forum 2023 | Proactive Avoidance of Common Audit Findings-Video Recording

Video Transcription

Video Summary

The webinar featured experts from Crowe LLP, the Office of the Inspector General (OIG), and Illinois' Governor's Office of Management and Budget, discussing strategies to ensure federal grant compliance and minimize audit findings. The panelists emphasized the importance of understanding common audit pitfalls, such as weak internal controls, improper segregation of duties, inadequate tracking of expenses by program and grant year, and unallowable costs—especially improper use of funds across grants or budget years.<br /><br />Key points included the necessity of conducting regular organizational risk assessments to identify vulnerable areas, reviewing and enforcing clear policies and procedures (especially around procurement and subrecipient monitoring), and maintaining robust documentation to support all expenditures and eligibility decisions. The experts highlighted particular risks with indirect cost rate applications and the challenge of tracking property like equipment.<br /><br />Preparation throughout the fiscal year is critical: maintaining a detailed chart of accounts, performing ongoing reconciliations, updating staff training on federal and organizational requirements, and monitoring subrecipients diligently all contribute to smoother audits. Timely communication and collaboration with auditors were also underscored, alongside choosing reputable audit firms and following up on prior audit findings.<br /><br />Panelists urged attendees to leverage available resources such as OIG work plans for risk insights, and to remain proactive and thorough in documentation. The session concluded that being well-prepared year-round, conducting risk assessments, and fostering good internal controls are essential for compliance and successful audit outcomes.

Keywords

federal grant compliance

audit findings

internal controls

segregation of duties

organizational risk assessments

procurement policies

subrecipient monitoring

indirect cost rates

staff training

OIG work plans