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Review of FY2006 Real Property Audit Findings. NOAA Real Property Management Conference May 21, 2007 Mary Ann Whitmeyer. Budget Authority - Capital Leases Outlay Schedule - Capital Leases Example. AGENDA. Audit Components. KPMG will be the auditor again this year.

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Review of FY2006 Real Property Audit Findings

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Review of fy2006 real property audit findings l.jpg

Review of FY2006 Real Property Audit Findings

NOAA Real Property Management Conference

May 21, 2007

Mary Ann Whitmeyer

Heather Hirzel / (301) 713-3530

[email protected]


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Budget Authority - Capital Leases

Outlay Schedule - Capital Leases

Example

AGENDA

Heather Hirzel / (301) 713-3530

[email protected]


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Audit Components

  • KPMG will be the auditor again this year.

  • Interim field work date is July 30 – August 10.

  • Final field work is scheduled for October 9 – 12.

  • Property, Plant and Equipment (PP&E) receives the most examination because it is aside from our appropriation, the largest dollar amount in the assets on the balance sheet.

Heather Hirzel / (301) 713-3530

[email protected]


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Audit Components

  • Notification of Finding and Recommendation (NFR)

  • Management Letter

  • Corrective Action Plan

Heather Hirzel / (301) 713-3530

[email protected]


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Notification of Finding and Recommendation

  • This year there were five Real Property, Facility and Logistics Office findings.

  • Three of the findings involved operating leases.

  • Two of the findings were related to CWIP projects.

Heather Hirzel / (301) 713-3530

[email protected]


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Notification of Finding and Recommendation

  • NFR-3 Lease Determination Worksheet for two new leases did not agree to the operating lease schedule totals provided as supporting documentation.

Heather Hirzel / (301) 713-3530

[email protected]


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Notification of Finding and Recommendation

  • NFR-30 For two of the eight operating leases tested, the lease determination worksheet contained errors. They were properly classified as operating leases, despite the errors.

Heather Hirzel / (301) 713-3530

[email protected]


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Notification of Finding and Recommendation

  • NFR-19 Four new operating leases had a start date prior to October 1, 2005, but were not entered into Federal RPM timely.

Heather Hirzel / (301) 713-3530

[email protected]


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Corrective Action Plan

  • To address the need for closer review, the Standard Operating Procedure for the Lease Review Board was revised.

  • It incorporates more stringent review of the Lease Determination Worksheet (LDW) and more documentation is required to support the review.

  • The regional chief also verifies the rental cost numbers on the LDW.

Heather Hirzel / (301) 713-3530

[email protected]


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Corrective Action Plan

  • To ensure that leases are entered in Federal RPM in a timely manner, a tracking spreadsheet has been implemented.

  • The Standard Operating Procedure for the Lease Review Board was expanded to include post approval tracking.

  • Working on finalizing reasonable expectation of time between the receipt of the signed lease and entry into FRPM.

Heather Hirzel / (301) 713-3530

[email protected]


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Notification of Finding and Recommendation

  • NFR-32 Real Property Facilities and Logistics Office incorrectly capitalized the full contract amount of $978,016 for a hurricane-damaged dock in Pascagoula, MS. Only $405,480 had been paid on the uncompleted project.

Heather Hirzel / (301) 713-3530

[email protected]


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Notification of Finding and Recommendation

  • NFR-36 Of the four FY 2006 additions tested, asset number FLM00202, related to a CWIP property that was completed on June 3, 2005, but not transferred to the real property account until fiscal year 2006.

Heather Hirzel / (301) 713-3530

[email protected]


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Corrective Action Plan

  • To address the cause of the Pascagoula and Florida CWIP findings, training was planned for all staff to identify and record CWIP transactions in accordance with NOAA’s established policies.

Heather Hirzel / (301) 713-3530

[email protected]


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Conclusion

  • This fiscal year, the auditor will check on the status of prior year management letter comments. It is critical that our corrective action plans be in place. They will yield a clean audit and we can congratulate ourselves for a job well done.

Heather Hirzel / (301) 713-3530

[email protected]


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  • The findings on agreement of the operating lease payment schedules to the supporting spreadsheets and the lease determination worksheet errors all need to be addressed by closer review.

Heather Hirzel / (301) 713-3530

[email protected]


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