Accounting Procedures Handbook

6 AUDIT Prepare the schedule of federal grants from the G/L Accounting System Grant List for the external auditors for the Audit of Federal Awards (Uniform Guidance). B. Medicaid Audits / Monitoring The following procedures are the responsibility of the Accountant (Accountant II). The Accounting Manager or other designee is the backup in the Accountant II absence. 1. Internal Monitoring MSDE requires each LEA to establish and maintain an internal monitoring system. To meet this requirement, the Accountant II conducts monthly monitoring audits. An appropriate sample size of Medicaid claims is selected, and compliance testing is conducted. Findings and recommendations for corrective action are reported to the Director of Special Education for further action. 2. Annual Medicaid Audit The State Department of Health and Mental Hygiene (DHMH) and MSDE jointly conduct an annual onsite audit of Medicaid Claims. The Accountant II assists the Special Education Department with the collection and review of claims records requested by the auditors in advance of this audit. The Accountant II also provides support in resolving any findings and issues that result from the audit. C. Student Activity Funds Audit/Monitoring Board policy requires an annual audit of all Student Activity Accounts (Schools). The Audit Committee is responsible for selecting the external audit firm / CPA’s responsible for performing this audit. The following procedures are the responsibility of the Accountant assigned to Student Activities accounting (Accountant III). The Accounting Manager or other designee is the backup in the Student Activity Funds Accountant’s absence. 1. Scheduling/ Coordination Coordinate and schedule onsite audit visits in the July timeframe for all schools. Every effort should be made to ensure that Bookkeepers and Principals are available to meet with the external auditors as needed during these visits. Communicate with the auditors on an as needed basis during the school audits to ensure that all requests for information are addressed and also to resolve and/or clarify findings that result from the audit. 2. Trial Balance and Other Supporting Documentation Generate the trial balance and other reports/documentation requested by the external auditors as part of the preparation process and for the onsite audit visits. 3. Ongoing Monitoring At least once a year, the Accountant III will visit each school to evaluate the adherence to existing control procedures. Communicate