For those organizations that are government funded or operated and are subject to audit, it is worth noting the General Accounting Office (GAO) released a new “yellow book” officially titled "Government Auditing Standards" on June 25, 2003. This document prescribes standards used by virtually all government auditors, including State and Local Government auditors.

Although most changes made since the 1994 edition are directed at the clarifying the duties/organization and engagements of the audit profession, parts of the new rules will affect entities subject to audit. Audit reports will now an increased emphasis on internal control.

Internal Controls are the policies, procedures and practices which assure accurate financial and operational reporting, protect organizational assets and promote effective and efficient operations. They include such things as documentation requirements, performance appraisals, operational reviews, segregation of conflicting duties-such as the custody and accounting of assets.

Bottom line: If you are receiving government funds or a governmental entity, now would be a good time to review, document and improve your controls. The value of documenting your internal controls, their effectiveness and period review goes a long way to ensuring a smooth audit.



superheater@rrmail.com

CONTROL NUMBER 1 - RUN SPELLCHECK BEFORE POSTING TO RYPN. OOPS!

For those museums or organizations that are government funded or operated and are subject to audit, it is worth noting the General Accounting
Office (GAO) released a new “yellow book” officially titled "Government Auditing
Standards" on June 25, 2003. This document prescribes standards used by virtually all government auditors, including state and local level auditors.

Although most changes made since the 1994 edition are directed at the clarifying the duties, organization and engagements of the audit profession, parts of the new rules will affect those subject to audit. Audit reports will now have an increased emphasis on internal control.

Internal Controls are the policies, procedures and practices which assure accurate financial and operational reporting, protect organizational assets and promote effective and efficient operations. They include such things as documentation requirements, performance appraisals, operational reviews, segregation of
conflicting duties-such as the custody and
accounting of assets.

Bottom line: If you are receiving government
funds or are a governmental entity, now would be a good time to review, document and improve
your controls. The value of documenting your
controls, their effectiveness and period review goes a long way to ensuring a smooth audit.


superheater@rrmail.com