-------
EXECUTIVE SUMMARY
In an era of tight budgets, limited resources, and rising public demand for quality
public services, Congress has become increasingly concerned with the fiscal and
programmatic health of Federal agencies. Information on the effectiveness of Federal
programs in delivering mandated public services, as well as the efficacy of those services,
are at the core of recent legislative actions.
The Inspector General Act Amendments of 1988 made significant changes to the way
in which Federal agencies resolve their significant audit findings. Among other
requirements, agencies must now prepare and submit semiannual reports to Congress on
the status of their audit resolution and follow-up activities. The Chief Financial Officers Act
of 1990 fundamentally altered the fiscal accountability and reporting structure for Federal
managers. Agency heads must now report consistent standards of fiscal and
programmatic information to key decision-makers who affect national policy
development.
Public expectations are rising for a Federal service that uses hard-earned tax dollars
efficiently, manages programs for the most public benefit and is responsive to public
needs and interests - and the public is in an increasingly powerful position to influence
their elected representatives to make it so. It is within this context that EPA approaches
its responsibilities for the integrity of its environmental programs and the
administrative systems that it establishes to manage those programs for the public good.
The Agency and the Inspector General's Office are working together to ensure that
EPA programs are the most effective and efficient possible, and deliver the human
health and environmental benefits prescribed by the law. The Agency has identified in
its annual assurance letter to the President a number of material weaknesses in its
management processes, systems and procedures, and has established corrective action
plans to address and eliminate these weaknesses. Among the positive actions that the
Agency has taken to strengthen management integrity was the development and
implementation in 1990 of the Management Audit Tracking System (MATS) a national
data bank to track and report the status of EPA's audits. However, both the Inspector
General and senior managers continue to agree that the Agency's audit follow-up process
can be strengthened.
-------
The Inspector General has expressed concern about the accuracy of information
reported to Congress on the Agency's actions to resolve open audit findings. Among
other issues, the Inspector General reported that the Agency has often underreported
significant audit recoveries. Agency managers require information that accurately
represents the current status of their programs. To address these needs, EPA has
developed a national guidance document to promote best management practices for
monitoring, reporting and documenting audit information - the Quality Assurance
Manual for MATS Information Management.
The cornerstone of a quality management integrity program is prevention
through good planning. It is the Agency's goal to prevent management reporting and
tracking problems from developing by ensuring that managers incorporate quality
assurance measures and safeguards into administrative management systems at the
earliest planning stages. The Manual provides MATS system users - from staff to senior
managers - with standard procedures and checks and balances to assure that the
information contained in the system is accurate, and therefore useful as a management
tool.
The building blocks that support this management cornerstone are essential and
require the personal commitment of senior Agency managers, Audit Management
Officials, Audit Follow-Up Coordinators, and MATS operators to ensure program results.
They have the responsibility, authority and accountability to obtain and document
quality data. Headquarters staff will provide technical assistance and training for all audit
management staff. The Agency will conduct periodic transaction testing of information
in local databases to assure continuous quality control. Finally, the Manual provides
both senior managers and local area managers and staff with the basic standard
procedures and reporting methodologies required to assure consistent and reliable data.
With this quality assurance program in place, EPA managers will be in a position
to certify audit information and data; so that Congress can be confident that the Agency
is effectively managing its resources and programs to ensure the health of the American
people and protect our Nation's environment.
-------
U.S. Environmental Protection Agency's
Audit Resolution & Follow-Up Process
OIG Issues
Audit Report
Key
Process Flow =
Reporting Flow =
PATS = OIG Prime Audit
Tracking System
MATS = Agency Management
Audit Tracking System
OIG Enters Data
into PATS
J
PATS Data is
Downloaded into
Central MATS
Database
Regional
Administrator
Certifies that
MATS Data is
Complete,
Accurate, and
Current
Assistant
Administrator
Certifies that
MATS Data is
Complete,
Accurate, and
Current
Has the
Audit been
Resolved
within 180
Days'
Unresolved Audit Reported
\
Corrective Action
Corrective Actio
/AA/RA ContinuA
OIG's Semiannual
Report to Coi
Agency
Management's
Semiannual Repor
to Congress
Has the
Audit been
Resolved?
Resolved Audit
Reported
Yes,
' Audit"
. Resolved
No,
Resolution
Reaches
Impasse
I
Day 1
18O
Day*
I
T
Administrator Submits OIG's
and Agency Management's
Semiannual Reports to Congress
in May and October
365
Days
timid
-------
U.S. Environmental Protection Agency
Key Elements of Agency Management's
Semiannual Report to Congress on Audits
Management's Report has three sections.
Section 1
Outlines significant management initiatives undertaken to ensure a comprehensive and rigorous
audit management program in EPA.
Section 2
Contains the statistical tables required by Sections 5(b)(2) and 5(b)(3) of the Inspector General
Act of 1978, as amended. The tables summarize:
Final Action On Audit Reports With Disallowed Costs
Final Action On Audit Reports With Funds To Be Put To Better Use, Agreed To In A
Management Decision
Section 3
Contains the information required by Section 5(b)(4) of the Inspector General Act of 1978, as
amended. Information is provided for:
Audit Reports With A Management Decision But Final Action Not Taken After One Year
Audits Under Appeal Or Where A Legislative Solution Is Sought
The Report is Due to Congress in May and October of Each Year
-------
TABLE OF CONTENTS
Foreword i
Executive Summary ii
Introduction A-l
Building Blocks for Quality Assurance B-l
Uses and Benefits of the Manual B-3
Critical Success Factors to Achieve MATS Data Integrity B - 5
Roles and Responsibilities B - 6
Training Standards for the AFC and MATS Operator B -8
MATS Databases and Semiannual Report Relationships B - 9
Audit Information Worksheet Procedures C-2
Internal Audit Worksheet Procedures and Helpful Hints C-5
External Audit Worksheet Procedures and Helpful Hints C -10
Contract Audit Worksheet Procedures Explanation C-17
Suggested Practices C-18
Master Audit Information Worksheets D -1
General Audit Information Worksheet D - 3
Financial Information Worksheet D - 4
Non-Financial Corrective Action Completion Certification Worksheet D - 5
MATS Timetables and Schedules E-l
Key Monthly MATS Related Activities ฃ-3
Monthly and Semiannual Report MATS Activities E - 5
Calenders E - 6
Checklists F-l
Milestone Quality Assurance Checklists F-3
Final Quality Assurance Checklists F - 9
Reconciliation Checklists F-12
Suggested Practices F-19
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Quality Assurance Manual for MATS Information Management
Introduction
Building
Management
Integrity
EPA is working to build a culture of management integrity that
inspires the Agency to examine its processes, applaud its
successes and correct its weaknesses. The Agency developed the
Management Audit Tracking System (MATS), the audit
information database, to build the public confidence in EPA's
management of environmental issues. The Agency aims to
ensure that the validity of the information in MATS is the
cornerstone of an effective, high quality audit management
effort. The credibility of the Agency, to Congress and to the
public, hinges on complete, accurate and up-to-date data. Senior
managers and MATS operators alike are accountable for the data
in this system. The caliber of the data in MATS reflects the
quality of the programs the data represent.
Though the Agency's efforts to establish credible audit data have
made significant headway, the Office of the Inspector General
(OIG) has expressed concern about the quality of the data in the
local MATS databases and in the information being reported to
Congress. Subsequent internal reviews confirmed that there are
problems with the maintenance of MATS and processes used to
obtain this data. These reviews also identified processes that
were working effectively at the local level and could be used by
other organizations that are responsible for audit data integrity.
Purpose off the
Manual
The Quality Assurance Manual for MATS Information Management
seeks to standardize data management procedures and provides
tried and true approaches identified by people involved in the
audit follow-up process. It is an easy to use reference tool and a
working guide to audit follow-up. This Manual provides a
model generic set of steps to ensure consistent practices and high
level data integrity for the Agency.
Manual Structure
and Highlights
The Manual features procedures and forms to standardize the
critical tasks of data collection, certification, and management.
Used in concert with the straight forward guidance, the
worksheets, the checklists and the timetables make the Manual
easy to use and practical. The Manual, organized into five
chapters, promotes quick reference and application of key steps
in the audit follow-up process.
Introduction
A-1
-------
Quality Assurance Manual for MATS Information Management
The first chapter, "Building Blocks for Quality Assurance",
discusses the uses and benefits of the Manual, identifies critical
success factors, defines roles and responsibilities and training
standards, and illustrates the relationship between the MATS
databases and management's semiannual reports to Congress.
The second chapter, "Audit Information Worksheet
Procedures", diagrams the various MATS information sources,
and provides procedures and helpful hints for using worksheets
to follow-up on internal, external, and contract audits.
The next chapter, "Master Audit Information Worksheets",
includes worksheets for each type of audit. These worksheets are
designed to help data managers clarify the types and sources of
audit information, collect and certify audit data, and maintain
quality back-up documentation.
The fourth chapter, "MATS Timetables and Schedules", details
the monthly audit follow-up and semiannual report activities.
Calendars illustrate the time frames associated with the entire
MATS data management process.
"Checklists",, the final chapter, provides checklists and
guidelines to perform crucial quality assurance reviews and to
reconcile data with other systems.
Roles and The success of MATS is contingent upon the cooperation of all
Responsibilities parties involved in data integrity management. These parties
include senior managers, OIG staff, Audit Management Officials
(AMOs), the grants and financial management staffs, and Audit
Follow-up Coordinators (AFCs) and MATS operators in Regions
and Headquarters Offices. They comprise a communications
network necessary to sustain the system and make it work. All
participants are accountable for the data stored in MATS, and
subsequently, the information presented to Congress. (See
"MATS Database and Semiannual Report Relationships" on
page B - 9 of this Manual.)
While top management and AMOs assume personal
responsibility, and ultimately, are accountable for data integrity,
the AFC and the MATS Operators manage day to day operations.
They set the tone for the entire process by ensuring that data
entered into MATS are correct, complete, and current.
Worksheets and checklists provided in this Manual standardize
key steps that make up AFCs1 and MATS operators' daily
activities. (See "Roles and Responsibilities" on page B - 6 of this
Manual.)
Introduction A - 2
-------
Quality Assurance Manual for MATS Information Management
Goals for MATS
The Inspector General Act Amendments of 1988 made significant
changes to the audit resolution, follow-up and reporting
processes. EPA is required to prepare and submit semiannual
reports to Congress on the status of its audit resolution and
follow-up activities. These semiannual reports provide the
opportunity for the Agency to report to Congress the results of its
effective audit follow-up program. MATS, created in response to
this legislation, enables Agency managers to track audit
management data and to assist with the preparation of the
Congressional reports.
MATS allows the Agency to carefully monitor its audit follow-
up activity. The DIG and Resource Management Division
(RMD) use the system to ensure that audit follow-up is being
accomplished on a timely basis and that the information about
audits is accurate. When data are correctly maintained in
MATS, the use of audits as a valuable management instrument
becomes possible. Audits can provide the Agency with valuable
information, help improve the effectiveness of Agency
programs, and lead to costs savings. By tracking information
that is relevant to audit follow-up, MATS helps Agency
managers achieve the full benefit of audit findings.
A Culture of
Management
Integrity
By using the management tools contained in this Manual, AFCs
and MATS operators are better positioned to work effectively
with financial and program managers to ensure that reliable,
comprehensive, and credible data is reported in MATS. High
quality data in MATS make it possible for the Agency to build
the public trust by assuring the quality of its environmental data.
Introduction
A-3
-------
Building Blocks for
Quality Assurance
-------
Quality Assurance Manual for MATS Information Management
Building Blocks For
Quality Assurance
Purpose and Contents B-2
Uses and Benefits of the Manual B - 3
Critical Success Factors to Achieve MATS Data Integrity...B-5
Roles and Responsibilities B - 6
Training Standards B-8
MATS Databases and Semiannual Report Relationships.. B - 9
Building Blocks for Quality Assurance B -1
-------
Quality Assurance Manual for MATS Information Management
Purpose and Contents
Purpose
The purpose of this chapter is to explore the link between the
Quality Assurance Manual and the Agency's over-arching efforts
to improve data integrity.
Contents
This chapter contains materials that clarify Agency-wide
standards for the audit follow-up process and for the EPA
personnel involved in the process.
Included is a discussion of the uses and benefits of the Manual
and the critical success factors to achieve MATS data integrity.
In addition, this chapter lays out the roles and responsibilities for
senior managers, EPA organizations, and data management staff
to assure that the audit follow-up data are accurate, complete,
and current. Also included are the standards for training AFCs
and MATS operators.
This chapter concludes with a diagram showing the relationship
of the PATS database and the local MATS databases to the central
MATS database, and subsequently, to the Administrator's
Semiannual Report to Congress.
Building Blocks for Quality Assurance
Purpose and Contents
B-2
-------
Quality Assurance Manual for MATS Information Management
Uses and Benefits of the Manual
Building in
Quality Upffront
Using TQM
Approaches to
Get Program
Managers on
Board
Accountability
The Quality Assurance Manual is designed to build quality and
data integrity upfront into the management of program
operations. The Manual is a powerful vehicle for promoting a
common language and standard procedures to ensure consistent
high quality data. The format is straightforward and easy to use
to assist Audit Follow-up Coordinators and MATS operators in
working effectively with program managers to obtain valid and
reliable data.
The strength of the Manual is in its day-to-day use and practical
application as a "living" document that receives input from its
users and is continuously improved over time. It is envisioned
that the Manual will foster a dialogue among program
managers, Audit Follow-up Coordinators, and MATS operators
to assess and improve audit management practices. In this way,
program managers will assume responsibility for instilling the
highest principles of management integrity in their day-to-day
work.
The Quality Assurance Manual contains worksheets and
checklists that serve as benchmarks to standardize and improve
current audit follow-up procedures throughout the Agency. The
worksheets were developed and organized as a result of
processes deemed successful by the Office of Inspector General.
Feedback from users will allow the Resource Management
Division to modify and improve the Manual.
Total Quality Management techniques such as team problem
solving and the creation of Quality Action Teams for specific
roadblocks can further improve the data integrity process of
Agency programs. Teamwork fostered through TQM principles
can help build consensus, foster good communication, and
engage everyone in incorporating management integrity issues
into their work.
The Quality Assurance Manual promotes standardization and
accountability to strengthen management integrity in EPA. A
critical step is the issuance of this Manual. Users should
critically read, review, and compare the outlined procedures
against the current methods employed in their office to generate
ideas and input for improvement.
Building Blocks for Quality Assurance
Uses and Benefits of the Manual
B-3
-------
Quality Assurance Manual for MATS Information Management
How the
Resource
Management
Division Can
Assist its
Customers
Benefits of the
Manual
Resource Management Division staff are available to assist
Audit Follow-up Coordinators and MATS operators in
furthering effective use of the Manual. Plans are under way to
provide a menu of services in promoting a high degree of
quality in data integrity. These services include:
Communicating overall quality assurance and data integrity
objectives with top management across EPA;
Providing "how-to" training on using the Manual at
conferences held throughout the country;
Coordinating multi-point teleconferences for emerging data
integrity issues focusing on training, communications, and
technical assistance; and
Providing overall technical assistance.
Each region and program office has been provided copies of
relevant training material and videos to assist in audit follow-
up. Additional copies may be obtained from RMD.
Effective use of the Manual should allow each program office to
report a complete and accurate picture of the effectiveness of
their audit management programs to senior Agency managers.
The Manual also provides a baseline against which each
program office can evaluate its own program as well as for
senior management to assess how well Regions and
Headquarters Offices are doing. The measure of success for the
Manual is improved audit management - collecting and
reporting complete, accurate and up-to-date information in the
semiannual report to Congress.
Building Blocks for Quality Assurance
Uses and Benefits of the Manual
B-4
-------
Quality Assurance Manual for MATS Information Management
Critical Success Factors to
Achieve MATS Data Integrity
To ensure quality MATS data, the Audit Follow-Up
Coordinator, the MATS operator, or the members of
the Audit Follow-Up Coordinator's staff should:
critical success ^ Know the MATS timetables and schedules and
Factors if . ..
ensure that they are met...
A Use the quality control data collection
procedures and standard worksheets...
A Perform quality assurance reviews using
checklists...
A Reconcile monthly the data in MATS with other
EPA systems...
A Test transactions periodically...
A Implement and follow policies, procedures, and
guidance...
A "Keep current" through regular communication
with the Resource Management Division!
Building Blocks for Quality Assurance Critical Success Factors to Achieve MATS Data Integrity B - 5
-------
Quality Assurance Manual for MATS Information Management
Roles and Responsibilities
Audit
Management
Official (AMD)
Sets high level policies and procedures for MATS data collection
and operation to ensure an efficient and effective flow of MATS
data.
Meets with the AFC on a regular basis to be briefed about the
state of audit follow-up and the information reported in MATS,
and reviews written status reports.
Assists with the resolution of problems encountered during the
audit follow-up process.
Meets with OIG and Regional Counsel staff to discuss results of
the audit management process, and outstanding audit issues.
Audit Follow-Up
Coordinator (AFC)
Acts as a focal point for all audit follow-up information,
coordinating with financial and program managers to ensure
that MATS data is complete, accurate, and current.
Serves as the local MATS operator or has a working familiarity
with MATS.
Implements MATS policies and procedures and the quality
assurance program.
Communicates expectations and promotes cooperation.
Meets with AMO and other senior management on a regular
basis to keep them informed of audit management status and
what is being reported in MATS.
MATS Operator
Manages and coordinates the collection and management of all
MATS data and background documentation.
Reports to AFC and management about the integrity of audit
management data and related systems issues.
Conducts operations and maintenance of PC and mainframe
software related to MATS.
Performs two crucial QA reviews; the Milestone Quality
Assurance Review and the Final Quality Assurance Review.
(Refer to the QA Checklists in the Checklists Chapter).
Building Blocks for Quality Assurance
Roles and Responsibilities
B-6
-------
Quality Assurance Manual far MATS Information Management
Action Official
and/or Dispute
Decision Official
Presents high-level resolution of disputes related to audit
follow-up.
Finance Officer
Provides the MATS operator with certification that accounts
receivable and/or offsets have been established for an audit, and
that collections and offsets have been completed.
Utilizes the Financial Information Worksheet as a method of
communicating financial information. (Procedures for using
the worksheet are included in the Audit Information Worksheet
Procedures Chapter of this Manual.)
Informs the MATS operator when an accounts receivable has
been referred to the Collections Officer and informs the MATS
operator of the Collections Officer's decision.
Assists with reconciliation of MATS with the Audit Tracking
Report (ATR).
Appeal Official
Forwards to the MATS operator the appeal letter, the cover page
of the appeal letter, or a memo indicating that the audit is in
appeal.
Keeps the MATS operator informed of the current status of the
appeal.
Forwards the appeal decision letter to the MATS operator as well
as the Audit Information Worksheet with the appropriate
appeal information marked on the worksheet.
Informs the MATS operator of any changes in the financial
findings for the audit based on the appeal decision.
Office of the
Inspector
General (OIG)
Issues the audit report and initial PATS download which
includes audit identifying information and financial data such as
Federal Funds Questioned or Better Use Funds Recommended.
Enters management decision information into PATS, which is
subsequently downloaded to the OIG Screen in MATS (OIG Close
Date. Federal Funds Disallowed, Better Use Funds Agreed.)
Participates in reconciliation between MATS and PATS.
Specifically, ensures that management and the OIG both agree
on the Federal Funds Disallowed as identified in the FDL.
Building Blocks for Quality Assurance
Roles and Responsibilities
B-7
-------
Training
Standards
Quality Assurance Manual for MATS Information Management
Training Standards for the Audit Follow-up
Coordinator and the MATS Operator
The MATS operator and the AFC should:
Review and be familiar with the standard audit
management material distributed by RMD, especially the
MATS Operator's Manual and this Quality Assurance
Manual.
Attend the MATS training offered by RMD.
Have an additional person at each site who is familiar with
MATS and can serve as a back-up.
Attend follow-on MATS training sessions when they are
offered by RMD.
Participate in short-term rotations with RMD.
Read and retain MATS Bulletins in the Audit Management
Guidance Binder.
Participate in teleconferences concerning MATS.
Reference
Materials
The following reference materials should be available at each
site for audit management participants and for new or interested
staff:
Office of Management and Budget Circular A-50
EPA Order 2750
The December 22, 1989 EPA Memorandum on Strengthening
the EPA's Audit Management Capability
EPA's Audit Management Videos
Audit Handbook for EPA Managers
Model Audit Management System
EPA's Management Audit Tracking System (MATS) Operator's
Manual
Quality Assurance Manual for MATS Information Management
OIG special reviews of the audit follow-up program
Management and OIG Semiannual Reports to Congress
Building Blocks for Quality Assurance
Training Standards for the AFC and MATS Operator
B-8
-------
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c
CD
CD
O
r>
p
BJ
CO
CO
c
5
O
CD
MATS Databases and Semiannual Report Relationships
Central MATS Database
in RMD HQ
Management's
Semiannual Report
to Congress on Audits
Congress
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PATS
MATS databases throughout EPA offices
00
3
-------
Audit Information
Worksheet Procedures
-------
Quality Assurance Manual for MATS Information Management
Audit Information
Worksheet Procedures
Purpose and Contents C-2
Audit Follow-Up Process C-3
Various MATS Information Sources C-4
Internal Audit Worksheet Procedures C-5
Helpful Hints: Internal Audit Worksheets C-8
External Audit Worksheet Procedures C-10
Helpful Hints: External Audit Worksheets C-14
Contract Audit Worksheet Procedures Explanation C-17
Suggested Practices C-18
Quality Audit Management Data C-19
File Guidance C-20
Audit Information Worksheet Procedures C -1
-------
Quality Assurance Manual for MATS Information Management
Purpose and Contents
Purpose
The purpose of this chapter is to supply AFCs and MATS
operators with necessary tools to collect and report data
accurately and efficiently in MATS.
Contents
This chapter begins by presenting two flow diagrams. The first
diagram presents the phases and process for each major type of
audit. The second identifies the sources of audit follow-up
information and the flow to the MATS operator.
This chapter provides diagrammed Audit Information
Worksheet procedures that explain: what kind of data is
collected and entered into MATS, when it is provided, who
provides and certifies the information, and what documentation
is needed to support the MATS data.
Also included are helpful hints for using the Audit Information
Worksheets to manage information for internal, external, and
contract audits.
The procedures presented here also offer guidance on when to
perform quality assurance reviews.
Also included with this chapter are suggestions to support
quality audit data, and for keeping complete files.
Note
These worksheets are an invaluable training tool as well as a
mechanism to ensure that a standardized approach is taken to
managing audit data.
Audit Information Worksheet Procedures
Purpose and Contents
C-2
-------
Audit Follow-Up Process for Various Types of Audits
The flow diagram represents the major stages that may occur during
the follow-up process for different kinds of audits.
External Audit Folloiv-Uu Process '^
Audit
Report
Issued
OlG/Mgmt
Audit Disagreement-^.
Resolution Resolution
Final
Determination
Letter (FDD
fc Appeal
^ Process*
*- Recoveries"-*- C?^echve-*>
Actions
Final
Action
Internal Audit Falloiu- lli> Process
Audit
Report
Issued
. . OlG/Mgmt
. . Audit ni<"iim-rrnrnt M.
Resolution Resolution
Management
Decision
Letter
Corrective
Action
Plan
^ Corrective ^
" Actions
Final
Action
Single Audit Fallcnu-LIt) Process '' '"'"'
Audit
Report
Issued
. . OlG/Mgmt
Audit Disagreement -fc.
Resolution Resolution
Final
Determination
Letter (FDD
^ Appeal
""*" Process*
^ .. ^ Corrective ^
-*- Recovenes"-*- Actjons -*
Final
Action
Pre-Aiunn! Contract Aiiilit Follow-Uu Process
Audit
Report
Issued
Contract
Negotiation *
Contract
Award
Final
Action
Post-Award Contract Aiiilit Folloiv-Llp '"*'."".'
Audit
Report
Issued
Audit ^
Resolution
Management
Determination
Letter (MOD
fc Appeal
^^ Process*
. ^ Corrective
*" Recoveries"-*- Acdons ป
Final
Action
ro
ฃ
ฃ
a
Adjustments thru Appeal (Reduction in Federal Funds Disallowed) amount is entered in the Wnte-Offs field in MATS
"Recoveries = Collections + Offsets + Value of Property + Other
I
4
-------
Various MATS Information Sources
Office of the Inspector General
(via PATS)
Audit Report Number
Audit Title
Action Official
Final Report Date
Questioned Costs
Recommended Funds to Be Put to Better Use
OIG Close Date
OIG Notes
Action Official/Dispute Decision Official
Proposed Decision Date
Management Decision Letter
Management Decision Date
Federal Funds Disallowed
Determination of Accounts Receivable
Identification of Recoveries (Offsets, Value of Property, Oilier)
Better Use Information
Final Action Date
Past Due Explanation
MATS Operator
Contact Person Name
Contact Person Phone Number
RegionlHQ Office
Program Offices
Corrective Action Plan/Milestones
Corrective Action Status Updates
Corrective Action Completion
Final Action Date (Internal Audits)
Past Due Explanation
Finance Office
Establishment of Account Receivable
Collections (Payment of Accounts Receivable)
Referral to Collection Officer
Record of Offsets
Write-Offs
Final Action Date (Financial Audits)
Past Due Explanation
Appeal Information Sources
Appeal Notice
Appeal Decision
Revised Financial Information
Past Due Explanation
-------
Quality Assurance Manual for MATS Information Management
Internal Audit
Worksheet Procedures
Purpose
This section provides instructions and helpful hints for using
the worksheets to collect information for internal audits. The
General Audit Information and the Non-Financial Corrective
Action Completion Certification Worksheets should be used for
internal audits.
General Audit
Information
Worksheet
Use as the master worksheet to collect, track, and document the
majority of the audit data. (See the General Audit Information
Worksheet in the Master Audit Information Worksheets
Chapter of this Manual.)
Non-Financial
Corrective
Action
Completion
Certification
Worksheet
Use to collect recommendations and agreed upon corrective
action information, and corrective action completion
certification signatures. (See the Non-Financial Corrective
Action Completion Certification Worksheet in the Master Audit
Information Worksheets Chapter of this Manual.)
Audit Information Worksheet Procedures
Internal Audit Worksheet Procedures
C-5
-------
Locate the audit identifying information on the OIG
Screen in MATS and enter it here.
Forward a copy of this worksheet to the person
responsible for preparing the management decision
letter with a request for him/her to complete Block B
and sign and return the worksheet along with a copy
of the management decision letter.
Obtain a Proposed Decision date from the official
responsible for resolving the audit and enter the date
here.
The official responsible for resolving the audit
should provide the Actual Decision date here.
When entering the data into MATS ask the questions
posed under the heading "Questions to ask when the
management decision letter and Audit Information
Worksheets are received." (Page P-4 of this manual)
The person providing the management decision
information should provide any Funds to Be Put to
Better Use information here.
The person providing the management decision
information should sign and date the worksheet here.
On the third line, provide the date the management
decision information was entered into MATS.
Do not use Block D for internal audits.
When all requirements for completing final action
have been met, enter a Final Action Done date into
MATS and insert the Final Action Done date. If
certification is required to take final action, the
authorized person should sign and date the
worksheet here.
Check the box and provide the date the Final Action
Done date was entered into MATS.
When entering the data in MATS ask the question
posed under the heading "Questions to ask when
final action is taken." (Page F-8 of this manual.)
Internal Audits
Instructions for lifting the General Audit
Information Worksheet
A. Audit Identifying Information
Grant / Contract 8;
Audit Report #:
Final Report Date:
Audit Title:
B. Management Decision Issued
Contact Name:
Proposed Decision Date:
Actual Decision Date:
Financial Information
Federal Funds Disallowed
A) Accounts Receivable
B) Offsets
O Property
D) Other
E) Write-offs
F)
Wai nntduuU ifuil Original Fajcnl Finds Ctai/lmaf >
Better Use Information
Financial Information
B) Not Completed
Certification Signature.
Date Information Provided:
Entered into MATS on:
D. Financial Recovery Information
D Created an Accounts Receivable in the Amount of:
D Created an Offset in the Amount of:
Q Dntp Final Financial Recovery Rpcci"ซ1-
E Corrective Action Completion
Q Date All Corrective Actions Completed:
F. Final Action
Final Action Done Date:
The Final Action Done Date was provided to the MATS operator and is correct.
(Signature) Date:
D Final Action Done Date was entered into MATS on:
When the OIG Close Date appears on the OIG Screen,
enter the date onto the worksheet. If the date does
not appear reasonable compared to the Actual
Decision date, contact the local OIG to reconcile the
difference.
There will not be appeal information with internal
audits.
The person providing any revised Funds to Be Put to
Better Use information should provide the
information here.
The person providing the revised information should
sign and date the worksheet here. On the third line,
provide the date the revised information was entered
into MATS.
Use the Non-Financial Corrective Action Completion
Certification Worksheet to obtain information. When
all corrective actions have been certified as complete
on the Non-Financial Corrective Action Completion
, Certification Worksheet, check the box in this block
and insert the date on the blank line.
Each individual corrective action completion date
should be recorded in MATS on the Non-Financial
Screen in the format presented in the MATS Helpful
Hints section. (In the Checklists chapter on Page
F-20 of this manual.)
The quality assurance questions referred to in the
gray boxes can be found in the Milestone Quality
Assurance Checklists. (The checklists begin on Page
F-3 of this manual.)
-------
When an internal audit report is received,
send a copy of this worksheet along with the
General Audit Information Worksheet to the
official responsible for resolving the audit
Locate the identifying information on the OIG
screen in MATS and enter it here.
The Division Director or Responsible Official
of the division who approves the completion
of the corrective action by the auditee should
sign and date the worksheet here to certify
that EPA has approved the completion of the
corrective action.
External Audits
Instructions for Using the Non-Financial
Corrective Action Completion
Certification Worksheet
Audit Report No.:
Grant/Contract No.:
Report Title:
Audit Report Date: _/_/_
Actual Decision Date: / /
The following corrective actions have been completed and sufficient, competent,
and relevant documentation is in the official files to support this conclusion.
Brief Summary of Recommendation # and Associated Corrective Actions
Division Director/Responsible Official Certification (signature)
Date
Brief Summary of Recommendation # and Associated Corrective Actions
The person providing the management
' decision information should enter the Actual
Decision date. This date should be the same
as on the General Audit Information
Worksheet.
The person providing the management
' decision information should enter the
recommendation number found in the audit
report,
and should provide a brief description of the
recommendation and associated corrective
action.
The description should take the form
recommended in the MATS Helpful Hints
section. (Located in the Checklists chapter
on Page F-20 of this manual.)
If there are more than three
recommendations with corrective actions
associated with the audit, make additional
copies of this worksheet.
Division Director/Responsible Official Certification (signature) Date
Brief Summary of Recommendation # and Associated Corrective Actions
When all of the corrective actions have been
completed and certified, check the box in
Block E on the General Audit Information
Worksheet and enter the date the last
corrective action was completed. (Refer to
the instructions for using the General Audit
Information Worksheet.)
Division Director/Responsible Official Certification (signature)
Date
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Quality Assurance Manual for MATS Information Management
Helpful Hints:
Using the Audit Information Worksheets
For Internal Audits
Worksheet
Distribution
Keep the master copies of the Audit Information Worksheets
with the management decision information in the front of the
file. Keep the marked-up copies of the worksheets from other
participants filed behind the master copies as documentation.
Forward a copy of the General Audit Information Worksheet
and the Non-Financial Corrective Action Completion
Certification Worksheet to the Action Official, Dispute Decision
Official, or designated information provider with a request to
complete the worksheets and return them when a management
decision has been issued.
When the worksheets and supporting documents from
information providers are received, compare the information
on the worksheets with the documents and decide if the
information on the worksheets appears to be accurate and
reasonable. If the data appear to be inaccurate, consult with the
person most knowledgeable about the information to clear up
any questions.
Reconciliation
If any inconsistencies between MATS data and the PATS data
displayed on the OIG Screen in MATS are discovered, contact
the local OIG PATS contact to reconcile (correct or explain)
the inconsistency.
Use the Reconciliation Checklists included in the Checklists
Chapter of this Manual (the checklists begin on page F - 12) to
assist with the reconciliation. Remember, inconsistencies are
not always incorrect, but it is important to know why the
inconsistency exists and determine if there is a legitimate
difference that should not be changed.
Audit Information Worksheet Procedures
Helpful Hints Internal Audit Worksheets
C-8
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Funds to Be Put
to Better Use
Corrective
Actions
Quality Assurance Manual for MATS Information Management
Some internal audit management decisions may agree to Funds
to Be Put to Better Use. If so, at some point attempt to divide the
Management Agreed Upon amount into two sub-categories:
Actually Completed and Not Completed. The contact person
should use Block B of the General Audit Information
Worksheet to provide this break-out. The two sub-categories
should sum to the original Management Agreed Upon amount.
Review the proposed completion dates of corrective actions on a
regular basis (every 30 - 45 days) to see if any proposed
completion dates are approaching or are past due, and then
check the actual current status.
Audit Status
If the management decision will be or already is past due (longer
than 180 days), request an explanation for the delay as well as a
new Proposed Decision date. Write the new proposed date next to
the old date in Block B on the General Audit Information
Worksheet, and also enter it into the Proposed Decision field in
MATS. Record the original proposed date and the reason for not
meeting the original date onto the Non-Financial Screen in
MATS.
If the 365-day final action deadline is past or approaching, contact
the responsible parties and request an explanation for the delay.
Record the new proposed final action date (and any new
proposed corrective action dates) on the Non-Financial Screen of
MATS and enter the reason for not meeting the original date
onto the Past Due Screen in MATS.
When all corrective actions have been completed and certified,
final action should be taken. The Final Action Done date should
be written in Block F of the General Audit Information
Worksheet and entered into MATS on the Management Main
Screen.
Audit Information Worksheet Procedures
Helpful Hints Internal Audit Worksheets
C-9
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Quality Assurance Manual for MATS Information Management
External Audit
Worksheet Procedures
Purpose
This section provides instructions and helpful hints for using
the worksheets to collect information for external audits. The
General Audit Information, Financial Information, and the
Non-Financial Corrective Action Completion Certification
Worksheets should be used for external audits.
General Audit
Information
Worksheet
Use as the master worksheet to collect, track, and document the
majority of the audit data. (See the General Audit Information
Worksheet in the Master Audit Information Worksheets
Chapter of this Manual.)
Financial
Information
Worksheet
Use to communicate with the Finance Office and to collect
financial information. (See the Financial Information
Worksheet in the Master Audit Information Worksheets
Chapter of this Manual.)
Non-Financial
Corrective
Action
Completion
Certification
Worksheet
Use to collect recommendations and agreed upon corrective
action information, and corrective action completion
certification signatures. (See the Non-Financial Corrective
Action Completion Certification Worksheet in the Master Audit
Information Worksheets Chapter of this Manual.)
Audit Information Worksheet Procedures
External Audit Worksheet Procedures
C- 10
-------
Locate the audit identifying information on the OIG Screen in
MATS and enter it here.
Forward a copy of this worksheet to the person preparing
or reviewing the FDL with a request for him/her to
complete Box B and sign and return the worksheet along
with a copy of the FDL.
The person providing the management decision information
should provide the Actual Decision date, federal funds
Disallowed, and any Recoveries or Write-offs here. Check to be
sure that the sum of lines A through E equal the Federal Funds
Disallowed amount.
When entering the data into MATS ask the questions posed
under the heading "Questions to ask when the management
decision letter and Audit Information Worksheets are received.'
(Page F-4 of this manual.)
The person providing the management decision information
should provide any Funds to Be Put to Better Use information
here.
The person providing the management decision information
should sign and date the worksheet here. On the third line,
provide the date the management decision information was
entered into MATS.
When notice is received from Finance that it has established an
accounts receivable and/or an offset, check the appropriate
boxCes) and enter the amount(s) on the appropriate linets).
When notice is received from Finance that it has received the
final recovery, check the third box and enter the payment receipt
date on the blank line.
When entering the data into MATS ask the questions posed
under the heading "Questions to ask when the notice of financial
recovery is received." (Page F-6 of this manual.)
When all requirements for completing final action have been
met, enter a Final Action Done date into MATS and insert the
Final Action Done date. If certification is required to lake final
action, the authorized person should sign and date the
worksheet here.
Check the box and provide the date the Final Action Done date
was entered into MATS.
When entering the data in MATS ask the question posed
under the heading "Questions to ask when final action is
taken." (Page F-8 of this manual.)
External Audits
Instructions for Using the General Audit
Information Worksheet
A. Audit Identifying Information
Grant / Contract #:
Audit Reportป:
Final Report Date:
Audit Title:
OIG Close Date:
B. Management Decision Issued
Contact Name:
Proposed Decision Date: _
Actual Decision Date: _
financial Information
Federal Funds Disallowed
A) Accounts Receivable
B) Offsets
C) Property _
D) Other
E) Wnte-Ofb
F) Reinstated Costs _
SumofA+B-fC+D+E+F
(Tills cum stout* qiul Original Ftdaal Funds Dtstllaial I
Better Use Information
Financial Information
A) Actually Completed
B) Not Completed
Original
N.A.
Certification Signature:
Date Information Provided:
Entered into MATS on:
C Appeal Information
Contact:
Q Audit is in Appeal.
Appeal Decision Date:
Revised through appeal, etc.
(Same as Original)
sun ikwU opal Original Fafanl Funds Disillnwl.)
D. Financial Recovery Information
Q Created an Accounts Receivable in the Amount of:
G Created an Offset in the Amount of:
D Date Final Financial Recovery Received:
E. Corrective Action Completion
Q Date All Corrective Actions Completed:
F. Final Action
Final Action Done Date:
The Final Action Done Date was provided to the MATS operator and is correct.
(Signature) Dale:
Q Final Action Done Dale was entered into MATS on:
When the OIC Close Date appears on the OIG Screen, enter the
date onto the worksheet. If the date does not appear reasonable
compared to the Actual Decision date, contact the local OIG to
reconcile the difference.
If the FDL is appealed, check the appeal box. (When the appeal
decision is issued, put a slash through the check mark and enter
the appeal decision date here and on the Non-Financial Screen
in MATS.
When entering the data Into MATS, ask the questions posed
under the heading "Questions to ask when a notice of appeal
Is received." (Page F-7 of this manual.)
Forward a copy of the worksheet (filled in with the original
decision information) to the person preparing the appeal
decision letter with a request for him/her to complete this
block and sign and return the worksheet along with a copy
of the appeal decision letter.
The person providing the appeal decision information should
provide the Appeal Decision Date, any revised Recoveries or
. Vt/rite-Offs, and Reinstated Costs (to be included in Write-offs in
MATS) here. Check to be sure that the sum of lines A through F
equals the original Federal Funds Disallowed amount.
When entering the data into MATS, mk the questions posed
under the heading "Questions to ask when the appeal is
resolved." (Page F-7 of this manual.)
The person providing the appeal information should provide
any revised funds to Be Put to Better Use information here.
The person providing the appeal information should sign and
. date the worksheet here. On the third line, provide the date the
appeal information was entered into MATS.
Use the Non-Financial Corrective Action Completion
Certification Worksheet to obtain information. When all
corrective actions have been certified as complete on the
Non-Financial Corrective Action Completion Certification
. Worksheet, check the box in this block and insert the date on
the blank line.
Each individual corrective action completion date should be
recorded in MATS on the Non-Financial Screen in the format
presented in the MATS Helpful Hints section. (Located in the
Checklists Chapter on Page F-20 of this manual.)
The quality assurance questions referred to in the gray boxes
can be found in the Milestone Quality Assurance Checklists.
(Which begin on Page F-3 of this manual.)
-------
If the person preparing or reviewing the
FDL (and providing the management
decision information on the General Audit
Information Worksheet) has responsibility
for requesting the establishment of accounts
receivable or offsets, transmit a copy of this
worksheet to him/her along with the
General Audit Information Worksheet.
He/she will be responsible for sending this
worksheet to Finance when making the
request.
If the AFC or MATS operator is responsible
for requesting the establishment of accounts
receivable, he/she should send this
worksheet to Finance when making the
request.
If either the accounts receivable or the offset
amount is revised, the information provider
should enter the revised amount and the date
here.
When Finance receives an accounts receivable
payment or completes an offset, Finance should
provide the appropriate information in this
block and forward a copy to the AFC or MATS
operator along with any documentation the
AFC or MATS operator may need for the file.
When the final recovery has been made, check
the box in Block D on the General Audit
Information Worksheet and enter the date the
final recovery was made (refer to the General
Audit Information Worksheet Instructions).
When entering the data into MATS, ask the
questions posed under the heading
"Questions to ask when the notice of
financial recovery is received." (Page F-6 of
this manual.)
External Audits
Instructions for Using the Financial
Information Worksheet
Accounts Receivable/Offset Establishment
Please create an Accounts Receivable in the amount of .
and/or an Offset in the amount of
for Audit # Grant/Contract #
(Signature)
Datei_/_/_
Established an Accounts Receivable in the amount of
and/or an Offset in the amount of
(Signature) Date:_/_/_
Revised Accounts Receivable Amount:.
Revised Offset Amount:
(Due to Appeal, Revised FDL, etc. )
Date:_/_/_
Date:_/_/_
Recoveries (Accounts Receivable /Offsets)
Crant/Conliact
Number
Collection
Amount
OHset
Amount
Final
Recovery
OWN)
Signature
Dale
Collections Officer Information
Referred the Accounts Receivable to the Collections Officer on: _ /_ /_
The Accounts Receivable amount of
was written off by the Collections Officer on: _ /_ /_
The amount of remains to be collected.
The requestor should indicate the accounts
1 receivable amount, the offset amount, and the
corresponding Audit Number and Grant
Contract Numbers, and sign and date the
worksheet here.
When the accounts receivable staff member
establishes an accounts receivable or offset
he/she should indicate the dollar amounts
and sign and date the worksheet here and
forward a copy of the worksheet to the MATS
operator.
When the notice of establishment is received,
check the box(es) in Block D on the General
Audit Information Worksheet, and indicate
the appropriate accounts receivable and offset
amount (refer to the General Audit
Information Worksheet Instructions).
(Finance should retain a copy of the
worksheet in its file so that it can fill in the
Recoveries and Collections Officer
Information blocks on this worksheet with
any additional information Finance will need
to provide.)
If Finance refers the accounts receivable to the
Collections Officer at EPA Headquarters,
Finance should enter the referral date here,
and forward a copy of the worksheet to the
MATS operator. Enter an explanation onto
the Non-Financial Screen in MATS.
When Finance receives the Collection
Officer's decision, Finance should provide the
information here and forward a copy of the
worksheet. Enter the Write-Offs and revised
Accounts Receivable amounts into MATS and
provide an explanation on the Non-Financial
Screen.
-------
When an internal audit report is received,
send a copy of this worksheet along with the
General Audit Information Worksheet to the
official responsible for resolving the audit.
Locate the identifying information on the OIG
screen in MATS and enter it here.
Internal Audits
Instructions for Using the Non-Financial
Corrective Action Completion
Certification Worksheet
Audit Report No.:
Grant/Contract No.:
Report Title:
Audit Report Date: _ /_ /_
Actual Decision Date: / /
The following corrective actions have been completed and sufficient, competent,
and relevant documentation is in the official files to support this conclusion.
Brief Summary of Recommendation # and Associated Corrective Actions
The Division Director or Responsible Official
of the division who completed the corrective
action should sign and date the worksheet
here to certify completion of the corrective
action.
Division Director/Responsible Official Certification (signature)
._
Date
Brief Summary of Recommendation # and Associated Corrective Actions
The person providing the management
decision information should enter the Actual
Decision date. This date should be the same
as on the General Audit Information
Worksheet.
The person providing the management
decision information should enter the
recommendation number found in the audit
report,
and should provide a brief description of the
recommendation and associated corrective
action.
The description should take the form
recommended in the MATS Helpful Hints
section. (Located in the Checklists chapter
on Page F-20 of this manual.)
If there are more than three
recommendations with corrective actions
associated with the audit, make additional
copies of this worksheet.
Division Director/Responsible Official Certification (signature) Date
Brief Summary of Recommendation ff and Associated Corrective Actions
When all of the corrective actions have been
completed and certified, check the box in
Block E on the General Audit Information
Worksheet and enter the date the last
corrective action was completed. (Refer to
the instructions for using the General Audit
Information Worksheet.)
Division Director/Responsible Official Certification (signature)
Date
-------
Quality Assurance Manual for MATS Information Management
Helpful Hints:
Using the Audit Information Worksheets
For External Audits
Worksheet
Distribution
Keep the master copies of the Audit Information Worksheets
with the management decision information in the front of the
file. Keep the marked-up copies of the worksheets from other
participants filed behind the master copies as documentation.
If the person preparing or reviewing the Final Decision Letter
(FDL) has responsibility for requesting the establishment of
accounts receivable or offsets, forward a copy of the Financial
Information Worksheet along with the General Audit
Information Worksheet. If management may propose corrective
actions for the auditee, forward a copy of the Non-Financial
Corrective Action Completion Certification Worksheet.
When the worksheets and supporting documents are received
from information providers, compare the information on the
worksheets with the documents and decide if the information
on the worksheets appears to be accurate and reasonable. If the
data appear to be inaccurate, consult with the person most
knowledgeable about the information to clear up any questions.
Reconciliation
If any inconsistencies between MATS data and the PATS data
displayed on the OIG Screen in MATS are discovered, contact
the local OIG PATS contact to reconcile (correct or explain)
the inconsistency.
Use the Reconciliation Checklist included in Checklists Chapter
of this Manual (the checklists begin on page F - 12) to assist with
the reconciliation. Remember, inconsistencies are not always
incorrect, but it is important to know why the inconsistency
exists and determine if there is a legitimate difference that
should not be changed.
Audit Information Worksheet Procedures
Helpful Hints External Audit Worksheets
C-14
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Quality Assurance Manual for MATS Information Management
Funds to Be Put
to Better Use
It is conceivable that there may be an external audit with Funds
to Be Put to Better Use. At some point, divide the Management
Agreed Upon amount into two sub-categories: Actually
Completed and Not Completed. The contact person should use
Block B of the General Audit Information Worksheet to provide
this break-out. The two sub-categories should sum to the
original Management Agreed Upon amount.
Financial
Recoveries
If a notification is received from Finance that it completed a
partial recovery (either an offset or an accounts receivable
collection), enter the recovery amount into MATS with a
comment on the Non-Financial Screen that the collection is
only a partial recovery.
Appeals
If there is financial information that is changed due to an appeal,
the sum of lines A through F in Block C of the General Audit
Information Worksheet must equal the original amount of
Dollar Value of Federal Funds Disallowed. Several financial
elements may change as a result of the appeal (Write-Offs,
Accounts Receivable, Offsets, Value of Property, Other), but the Dollar
Value of Federal Funds Disallowed should not be changed. All
reinstated costs resulting from adjustments thru appeal
should be included in the Write-Offs field.
The date of the appeal decision letter should be recorded on the
Non-Financial Screen.
Corrective
Actions
Review the proposed completion dates of corrective actions on a
regular basis (every 30 - 45 days) to see if any proposed
completion dates are past due, and then check the actual current
status.
Audit Status
If the management decision will be or already is past due (longer
than 180 days), request an explanation for the delay as well as a
new Proposed Decision date. Write the new date next to the old
date in Block B on the General Audit Information Worksheet,
and also enter it into the Proposed Decision date field in MATS.
Record the past due explanation on the Past Due Screen of
MATS.
Audit Information Worksheet Procedures
Helpful Hints External Audit Worksheets
C- 15
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Quality Assurance Manual for MATS Information Management
If the 365-day final action deadline is past or approaching, contact
the responsible parties and request an explanation for the delay.
Record the past due explanation on the Past Due Screen of
MATS. Record the new proposed final action date on the Non-
Financial Screen.
When all the accounts receivable have been paid, all corrective
actions completed, and the audit is not in appeal, final action
should be taken. The Final Action Done date should be written in
Block F of the General Audit Information Worksheet and
entered into MATS on the Management Main Screen.
Audit Information Worksheet Procedures Helpful Hints External Audit Worksheets C -16
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Quality Assurance Manual for MATS Information Management
Contract Audit Worksheet
Procedures Explanation
Note Although the audit follow-up concepts remain the same, the
processes and practices for handling contract audit follow-up
differ significantly front the processes and~practices for handling
internal or external audits. The definition and practical
application of the MATS data elements also differ for contract
audits.
Plans are currently underway to visit contract management
offices to learn more about this process. When these visits are
complete this section will be updated to include worksheet
procedures specifically designed for contract audits.
Audit Information Worksheet Procedures Contract Audit Worksheet Procedures Explanation C - 17
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Quality Assurance Manual for MATS Information Management
Purpose This section provides helpful hints for supporting quality audit
management data and for keeping and organizing files.
Quality Audit These are hints to help ensure that the audit follow-up process
Management proceeds effectively and results in quality audit management
data.
File Guidance This guidance identifies the importance of having ready access to
the documentation that supports the information in MATS. It
also lists the major pieces of information that the MATS
operator should be able to access readily.
Audit Information Worksheet Procedures Suggested Practices C - 18
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Quality Assurance Manual for MATS Information Management
Suggested Practices to Support
Quality Audit Management Data
Management
Decision Letter
The Federal share of Dollar Value of Federal Funds Disallowed,
Accounts Receivable, and Offsets should be clearly identified in the
management decision letter or attachments where they can be
easily identified for comparison with the Audit Information
Worksheets.
If the management decision letter for an audit contains more
than one project/grant, a summary of all financial
determinations should be presented to simplify interpretation.
A copy of the management decision letter and a copy of the
Audit Information Worksheets should be given priority
delivery (hand-carried) to the OIG to ensure that the OIG
receives the management decision letter and correct financial
information.
Timelines
When the AFC first transmits a copy of the audit to the Action
Official, he/she should provide a schedule of timelines for the
milestones during resolution of the audit to promote timely
resolution of the audit within the 180-day target.
Data
Inconsistencies
In the case of an inconsistency in data between MATS and PATS,
it should be resolved regionally. If management's data are
incorrect, then the data in MATS should be revised. If the OIG's
data are incorrect, then the local OIG contact should change the
data in PATS (the changes to PATS data will appear on the OIG
Screen in MATS after the PATS changes are downloaded to
MATS).
Working
Relationship
with OIG
Cultivate a positive working relationship with the OIG. A good
relationship will encourage a free flow of information with the
OIG, and will help facilitate reconciliation with PATS.
AFCs and MATS operators should review both the OIG's and
Management's Reports to Congress and be familiar with the
contents.
Audit Information Worksheet Procedures
Quality Audit Management Data
C- 19
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Quality Assurance Manual for MATS Information Management
File Guidance
Benefits of
Access to
Complete Files
The MATS operator should have ready access to all of the
documentation that supports the information in MATS. Ready
access will enable the AFC and the MATS operator to:
Perform QA reviews and systems reconciliations;
Perform transaction tests;
Respond to questions about the audit and the data in MATS;
and
Ensure that adequate documentation exists to back-up the
data in MATS.
Back-up
Documentation
The major pieces of documentation that the MATS operator
should have access to are:
The audit report;
The original Audit Information Worksheets and all
supporting copies of worksheets;
The latest MATS report for the audit;
Marked-up Quality Assurance and Reconciliation Checklists;
The management decision letter (Final Decision Letter,
Record of Procurement Action, etc.);
Any subsequent management decision letters;
Appeal letter or notification of appeal memo;
EPA appeal decision letter;
All correspondence with Finance regarding accounts
receivable or offsets;
Notification of referral to collections officer at HQ;
Write-Offs decision notice; and
Letter/worksheet certifying final action.
Audit Information Worksheet Procedures
File Guidance
C-20
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Master Audit
Information Worksheets
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Quality Assurance Manual for MATS Information Management
Master Audit
Information Worksheets
Purpose and Contents D-2
General Audit Information Worksheet D - 3
Financial Information Worksheet D - 4
Non-Financial Corrective Action Completion
Certification Worksheet D - 5
Master Audit Information Worksheets D - 1
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Quality Assurance Manual for MATS Information Management
Purpose and Contents
Purpose
This chapter contains the Audit Information Worksheets
package. These worksheets are to be used to collect and
document MATS audit follow-up data. The detailed
instructions for using the worksheets are included in the Audit
Information Worksheet Procedures Chapter of this Manual.
General Audit
Information
Worksheet
Use as the master worksheet to collect, track, certify, and
document the majority of the audit follow-up data.
Financial
Information
Worksheet
Use to communicate with the Finance Office to collect and certify
financial audit follow-up information.
Non-Financial
Corrective
Action
Completion
Certification
Worksheet
Use to collect recommendations and agreed upon corrective
action information, and corrective action completion
certification signatures.
Note
These worksheets are an invaluable training tool as well as a
mechanism to ensure that a standardized approach is taken to
managing audit data.
Master Audit Information Worksheets
Purpose and Contents
D-2
-------
General Audit Information Worksheet
A. Audit Identifying Information
Audit Report #:
Final Report Date:
Grant/Contract #:
Audit Title:
OIG Close Date:
B. Management Decision Issued
Contact Name:
Proposed Decision Date:
Actual Decision Date:
Financial Information
Federal Funds Disallowed:
A) Accounts Receivable:
B) Offsets:
C) Property:
D) Other
E) Write-Offs:
F) Reinstated Costs:
Original
N.A.
Sum of A+B+C+D+E+F:
(This sum should opal anginal Federal Funds Disallowed.)
Better Use Information
Better Use Management Agrees:
A) Actually Completed:
B) Not Completed:
Certification Signature:
Date Information Provided:
Entered into MATS on:
C. Appeal Information
Contact:
Q Audit is in Appeal.
Appeal Decision Date:
Revised through appeal, etc.
(Same as Original)
(77m iwn should equal original Federal Funds Disallowed.)
D. Financial Recovery Information (From Financial Information Worksheet)
Q Created an Accounts Receivable in the Amount of:
a
a
Created an Offset in the Amount oft
Date Final Financial Recovery Received:
E. Corrective Action Completion (From Non-Financial Corrective Action Completion Certrficalnn Worksheet)
Q Date All Corrective Actions Completed:
F. Final Action
Final Action Done Date:
The Final Action Done Date was provided to the MATS operator and is correct.
(Signature) Date:
G Final Action Done Date was entered into MATS on:
-------
Financial Information Worksheet
Accounts Receivable/Offset Establishment
Please create an Accounts Receivable in the amount of
and/or an Offset in the amount of
for Audit # Grant/Contract #
(Signature)
Established an Accounts Receivable in the amount of _
and/or an Offset in the amount of
(Signature)
Revised Accounts Receivable Amount:
Revised Offset Amount:
Date: / /
Date: / /
Date:
Date:
(Due to Appeal, Revised FDL, etc.)
Recoveries (Accounts Receivable/Offsets)
Grant/Contract
Number
Collection
Amount
Offset
Amount
Final
Recovery
(Y/N)
Signature
Date
Collections Officer Information
Referred the Accounts Receivable to the Collections Officer on:
The Accounts Receivable amount of
was written off by the Collections Officer on: / /
The amount of remains to be collected.
-------
Non-Financial Corrective Action
Completion Certification Worksheet
Audit Report No.:
Grant/Contract No.:
Report Title:
Audit Report Date: / / Actual Decision Date: / /
The following corrective actions have been completed and sufficient, competent,
and relevant documentation is in the official files to support this conclusion.
Brief Summary of Recommendation # and Associated Corrective Actions
Division Director/Responsible Official Certification (signature) Date
Brief Summary of Recommendation # and Associated Corrective Actions
Division Director/Responsible Official Certification (signature) Date
Brief Summary of Recommendation # and Associated Corrective Actions
Division Director/Responsible Official Certification (signature) Date
-------
MATS Timetables
and Schedules
-------
Quality Assurance Manual for MATS Information Management
MATS Timetables
and Schedules
Purpose and Contents E - 2
Key Monthly MATS Related Activities ฃ - 3
Monthly and Semiannual Report MATS Activities ฃ-5
Calendars ฃ- 6
MATS Timetables and Schedules E -1
-------
Quality Assurance Manual for MATS Information Management
Purpose and Contents
Purpose
The purpose of this chapter is to ensure that all MATS data
managers are aware of and have quick reference to the schedule
of MATS activities, and understand what these activities entail.
Attention to this chapter will help the MATS operator to:
Operate and manage the MATS database;
Participate in MATS related activities;
Conduct monthly quality assurance reviews to ensure
complete, accurate, and timely MATS data;
Continually improve MATS data; and
Eliminate uncertainty concerning the timing and nature of
various activities.
Contents
The monthly calendars provide specific guidance for when to:
Upload and download the MATS data;
Make changes to the MATS database;
Use the various checklists included in this Manual; and
Prepare for the semiannual report preparation process.
The monthly calendars in this chapter identify the timeframes
for data management activities including:
Transfer of MATS data between the AFC, the MATS
operator and RMD Headquarters through the RTF mailbox;
Communication with RMD staff concerning audit follow-
up;
Completion of Quality Assurance and Reconciliation checks;
and
Effective management of MATS data.
MATS Timetables and Schedules
Purpose and Contents
E-2
-------
Quality Assurance Manual for MATS Information Management
Key Monthly MATS Related Activities:
January, February, June, July,
August, and December (Regular Schedule)
Approximate
Dav of Month MATS Related Activity
1st 11th The Reconciliation Checklists are used during this period to
compare the MATS data with other systems or sources of data, to
evaluate the MATS database, to correct errors, or to develop
explanations for discrepancies. The Reconciliation Checklists are
used to assess and compare data in various systems to gain
insight into the integrity of the MATS data.
12th RMD downloads the local MATS databases to the RTF mailboxes
(with PATS data updates).
13th The MATS operators retrieve the local MATS databases from the
RTF mailboxes using the instructions in section 6.1.2, page 71 of
the MATS Operator's Manual.
14th RMD sends copies of the following status reports to all offices:
180 Day Past Due Report - This report lists all the audits
where an Actual Decision date has not been entered into
MATS within 180 days of the date of the final audit report.
365 Day Past Due Report - This report lists all the audits
where a Final Action Done date has not been entered into
MATS within 365 days of the date of the final audit report.
Appeal Report - This report lists all of the audits that are
recorded in MATS as in appeal.
Each office should run the following three inconsistency reports
available in MATS.
OIG Disallowed vs. Management Grand Total - This report
lists the audits where there is an inconsistency between the
total amount of the Federal Funds Disallowed on the OIG
MATS Timetables and Schedules Key Monthly MATS Related Activities E - 3
-------
Quality Assurance Manual for MATS Information Management
Screen versus the amount the Financial Screen shows as
Dollar Value of Federal Funds Disallowed.
Management Dollars Disallowed vs. Management Grand
Total - This report lists the audits where there is an
inconsistency between the amount that the Financial
Screen shows as Dollar Value of Federal Funds Disallowed and
the amount shown as Grand Total. This report only
includes audits where a Final Action Done date has been
entered. The purpose of the report is to identify audits
which have been recorded as being complete, but which
have Recoveries and Write-Offs which do not total the
Dollar Value of Federal Funds Disallowed.
Offsets + Accounts Receivable vs. Total Dollar - This
report lists audits where the Dollar Value of Federal Funds
Disallowed is not equal to the sum of the Accounts Receivable
+ Offsets on the Financial Screen. The purpose of the report
is to identify audits where the sum of offsets and the
expected recovery (represented by accounts receivable) do
not equal the Dollar Value of Federal Funds Disallowed.
14th 27th This is the data management period when the local MATS
databases are updated with the management information that
has been collected (for detailed instructions on how to use
MATS refer to the MATS Operator's Manual).
The Audit Information Worksheets are used to collect
MATS data, and the Milestone Quality Assurance
Checklists are used when entering data into MATS.
28th Stop entering data into the local databases. (Do not make
additional changes to the database because the next download
will replace any changes made after this date.)
The local databases are backed-up. (See the MATS Operator's
Manual section 5.1.1, page 61 for additional help to back-up
the database.)
The Final Quality Assurance Checklists are used to perform
a final quality assurance review of the MATS data before it
is uploaded to the RTF mailbox.
The databases are uploaded to the RTF mailbox. (See the
MATS Operator's Manual section 6.1.1, page 64 for assistance.)
29th next No changes are made to the local databases until the next
download download of PATS data updates from RMD have been received.
MATS Timetables and Schedules Key Monthly MATS Related Activities E - 4
-------
Quality Assurance Manual for MATS Information Management
Monthly and Semiannual
Report MATS Activities
Months with
Regular Monthly
Activities
The MATS operator participates in regular monthly MATS
activities for six months of the year. The months when the
MATS operator follows the regular monthly schedule are:
January
February
June
July
August
December
Months with
Semiannual
Report Activities
The MATS operator participates in semiannual report activities
during four months of the year. The MATS related activities for
the semiannual reporting periods are basically the same as for
the regular monthly schedule, except for additional activities as
noted on the calendars. The months when the MATS operator
follows the semiannual report schedule are:
March
April
September
October
"Free Months"
Because of the timing of semiannual report activities, there are
two "free" months during the year, and the MATS operator
should not do any MATS data entry during these months. The
months are:
May
November
Note
The dates shown on the calendars will vary slightly from year to
year due to weekends and holidays.
MATS Timetables and Schedules
Monthly and Semiannual Report MATS Activities
E-5
-------
September
1
Start using mซ |
cSSf!
8
1
15
I
22
29
2
9
16
23
30
Complete
coordination
with DIGA on
open audits.
Do Not Enter Data |
3
10
Do Not Enter Data
17
u
24
4
Do Not Enter Dau.
11
18
pdate Local Database
25
5
12
Stop tuiag the |
DซvปwW].'.ซi/OT 1
rwKwntauwiMii |
1
19
Teleconference
and E-Mail
fromRMD.
Review events in
semiannual
reporting
process.
'.
26
6
13
Retrieve local
MATS database
from RTF
20
27
Update Local Database |
7
1
14
Retrieve status
reports from
RMD.
reports.
StMitwtag |
MSeatoaeQA \
ChecUiati |
Begin updating
local database.
21
1
28
1) Stop entering
data.
2) Backup MATS.
3) Upload
database to RTF
mailbox.
-------
October
6
1
13
May receive call
to alert you to:
1) Overdue audits;
2) Inconsistencies;
and
3) QA Issues.
20
| Update Local ... |
27
7
14
Begin updating
local database.
Stut ""W k
MBertoaeQA 1
<"7iwHfitป |
21
1) Stop entering
data.
2) Backup MATS.
3) Upload
database to RTF
mailbox.
28
Receive
inconsistency
reports from
RMD.
1
Stut tuiag the |
ftoeoneiZfrfim 1
ChcetiiSff 1
8
Do Not Ei
15
22
May be contacted
by RMD for
more
information.
29
RMD reviews 365
day overdue
report.
RMD may call for
additional
information.
2
9
nter Data
16
Receive alert to
E-mail RMD
has sent.
U
23
Teleconference
with RMD.
30
3
Do Not Enter DaU
10
17
RMD reviews 180
day overdue
report.
RMD may call for
additional
information.
pdate Local Database
24
Do Not Enter Data
31
| Do Not Enter Data |
4
11
Stan ufinff tho
Oux&to**
I 1
18
Vic Paul QA
CbefUia*
before
uploudiog fE*ftf
;
25
5
1
12
Receive final
download for
the period.
Receive notice to
provide overdue
explanations.
Run inconsistency
reports.
19
, 1
26
1
-------
November
3
I
10
I
17
I
24
4
11
This month's
download will
be included next
TflOItthi
18
25
5
12
19
26
6
Do Not Enter Data
13
Do Not Enter Data
20
Do Not Enter Data
27
7
14
21
28
1
No download until
next month.
Do Not E
8
15
RMD completes
work on the
Scmiannuual
report.
22
29
2
nterData |
9
I
16
23
1
30
Administrator
signs
Semiannual
report.
RMD mails copies
to HQs and
Regional
Offices.
| Do Not Enter Dau |
-------
December, January & February
1
Start iiaqg ibe
KOOOOCUtttMO
CbeeUuts
6
Do Not Enter Data
8
9
10
11
12
Stop using the
13
Retrieve local
MATS database
from RTF
mailbox.
Do Not Enter Data
14
Retrieve status
reports from
RMD.
Run inconsistency
reports.
Begin updating
local database.
15
16
17
18
19
20
Stait using
Milestone QA
Cbeckfots
21
Update Local Database
22
23
24
25
26
27
Update Local Database
28
1) Stop entering
data.
2) Backup MATS.
3) Upload
database to RTF
mailbox.
29
30
31
Do Not Enter Data
-------
March
1
Stutiuiagtbe |
ReoouaEttioa 1
Cbeckfiotf 1
8
15
22
29
2
9
16
23
30
Complete
coordination
with DIGA on
open audits.
Do Not Enter Data |
3
10
Do Not Enter Data
17
u
24
4
Do Not Enter Data
11
18
pdate Local Databaw
25
5
12
Stop UBOg fa |
n.~*y~. |
>
19
Teleconference
and E-Mail
fromRMD.
Review events in
semiannual
reporting
process.
i
26
6
13
Retrieve local
MATS database
from RTP
mailbox.
20
27
Update Local Database |
7
14
Retrieve status
reports from
RMD.
Run inconsistency
reports.
Start using |
MflestoneQA 1
CbecUisb 1
Begin updating
local database.
21
28
1) Stop entering
data.
2) Backup MATS.
3) Upload
database to RTP
mailbox.
-------
April
6
1
13
May receive call
to alert you to:
1) Overdue audits;
2) Inconsistencies;
and
3) QA Issues.
20
(Update Local ... |
27
7
14
Begin updating
local database.
Otm^ -- _. k
r3Dut uatnฃ
MftatooeQA 1
GhecUuto |
21
1) Stop entering
data.
2) Backup MATS.
3) Upload
database to RTF
mailbox.
28
Receive
inconsistency
reports from
RMD.
1
Stutumagtbe fe
ReoendBatim \
ChetUitlf 1
8
Do Not Ei
15
22
May be contacted
by RMD for
more
information.
29
RMD reviews 365
day overdue
report.
RMD may call for
additional
information.
2
9
nler Data
16
Receive alert to
E-mail RMD
has sent.
U
23
Teleconference
with RMD.
30
3
Do Not Enter Data
10
17
RMD reviews 180
day overdue
report.
RMD may call for
additional
information.
pdatc Local Database
24
Do Not Enter Data
31
| Do Not Enter Data |
4
11
Stopuaag too
Reoaadliudon
Ctoctiutt
I
18
I/MHnalQA
OMotiirfa
before
upjowlutf clafia
25
5
1
12
Receive final
download for
the period.
Receive notice to
provide overdue
explanations.
Run inconsistency
reports.
19
26
-------
May
3
1
10
I
17
I
24
4
11
This month's
download will
be included next
month.
18
25
5
12
19
26
6
Do Not Enter Data
13
Do Not Enter Data
20
Do Not Enter Data
27
7
14
21
28
1
No download until
next month.
Do Not E
8
15
RMD completes
work on the
Semiannuual
report.
22
29
2
liter Data |
9
16
I
23
,
30
Administrator
signs
Semiannual
report.
RMD mails copies
to HQs and
Regional
Offices.
| Do Not Enter Data |
-------
June, July & August
1
Stut uaiag the
Rflooflciliafjofi
Cbeetiufe
8
15
Stut using
Milestone Q A
22
29
2
9
16
23
30
Do Not Enter Data
3
10
Do Not Enter Data
17
u
24
Update Loci
31
, I
4
Do Not Enter Data
11
18
pdate Local Database
25
d Database
5
12
Stop tiling the |
Bmmcilatioa \
Checkli** |
1
19
26
6
13
Retrieve local
MATS database
from RTF
20
27
1
7
1 1
14
Retrieve status
reports from
RMD.
reports.
Begin updating
local database
21
fe
28
1) Stop entering
data.
2) Backup MATS.
3) Upload
database to RTF
mailbox.
-------
Checklists
-------
Quality Assurance Manual for MATS Information Management
Checklists
Purpose and Contents F -2
Milestone Quality Assurance Checklists F-3
Final Quality Assurance Checklists F-9
Reconciliation Checklists F -12
With Action Official Designee F-14
Within MATS F-15
With PATS F-16
With ATR F -17
Suggested Practices F -19
MATS Helpful Hints F-20
Past Due Explanation Guidance F-22
Checklists F - 1
-------
Quality Assurance Manual for MATS Information Management
Purpose and Contents
Purpose The purpose of this chapter is to provide audit data managers
with a set of checklists to enable the managers to conduct crucial
quality assurance reviews of the MATS data.
Contents This chapter contains three sets of checklists. The Milestone
Quality Assurance Checklists provide questions to be asked
when audit data is collected and entered into MATS at various
critical milestones during the audit follow-up process. The Final
Quality Assurance Checklists provide questions to be asked prior
to uploading the MATS database to RMD via the RTF mailbox.
The Reconciliation Checklists provide guidance for comparing
the data in MATS with data in other systems.
This chapter also contains helpful hints for using MATS as well
as guidance for providing explanation for past due audits.
Checklists Purpose and Contents F - 2
-------
Quality Assurance Manual for MATS Information Management
Milestone Quality
Assurance
Purpose
This section presents checklists which should be used when
audit follow-up data is collected at various critical milestones in
the audit follow-up management process and the data is entered
into MATS. Answering the questions in the checklists will help
ensure that trie data is relevant, complete, and correct when it is
first entered into MATS.
Milestones
These checklists should be used when:
The final management decision letter is received;
A notice of financial recovery is received;
A notice of appeal is received;
The appeal decision letter is received; and
The Final Action Done date is entered.
Using the
Checklists
To assure data quality, the person using the checklists should be
able to answer "yes" to all of the questions in these checklists. If
he/she must answer "no" to any of the questions, he/she should
obtain a reasonable explanation for the "no" answer. If the
explanation for the "no" answer helps to clarify the
completeness, accuracy, or timeliness of the MATS data, the
explanation should be entered on the Non-Financial Screen in
MATS.
Checklists
Milestone Quality Assurance Checklists
F-3
-------
Quality Assurance Manual for MATS Information Management
Milestone Quality Assurance Checklists
Questions to ask when the management decision letter and
Audit Information Worksheets are received:
Management Decision Date
Is the Actual Decision date in MATS the date of the final Q Yes Q No
management decision letter?
Is the Actual Decision date in MATS later than the Final Q Yes Q No
Report Date?
If the Actual Decision date is beyond the 180-day limit, has Q Yes Q No
a reasonable explanation for the delay as well as an
estimated date for resolution been received? (Refer to the
Past Due Explanation Guidance section of this chapter for
explanation and examples.)
Dollar Value of Federal Funds Disallowed and Financial Information
Does the Dollar Value of Federal Funds Disallowed amount Q Yes Q No
entered in MATS equal the amount identified in the
management decision letter?
Does the Dollar Value of Federal Funds Disallowed amount Q Yes Q No
entered in MATS include only the Federal Share?
Does the Dollar Value of Federal Funds Disallowed amount Q Yes Q No
in MATS include the Federal share of all projects covered
by the audit and the management decision letter?
Does the Accounts Receivable amount entered in MATS Q Yes Q No
equal the amount identified in the decision letter?
Does the Accounts Receivable amount plus the Offsets, Q Yes Q No
Value of Property, Other, and Write-Offs amounts equal the
Dollar Value of Federal Funds Disallowed?
Does the Dollar Value of Federal Funds Disallowed amount Q Yes El No
shown on the OIG Screen equal the amount entered on
the Financial Screen?
Checklists Milestone Quality Assurance Checklists F - 4
-------
Quality Assurance Manual for MATS Information Management
Funds to Be Put to Better Use
Does the Funds to Be Put to Better Use Agreed amount on Q Yes Q No
the Management Better Use Screen match the amount in
the management decision letter?
Does the Better Use Funds Agreed amount shown on the Q Yes QNo
OIG Screen equal the amount entered on the Better Use
Screen?
Does the Dollar Value of Recommendations that Funds to Be Q Yes Q No
Put to Better Use Agreed to in a Management Decision on the
Better Use Screen equal the sum of the Dollar Value of
Recommendations that were Actually Completed plus the
Dollar Value of Recommendations that Management
Subsequently Concluded Should Not or Could Not be
Implemented or Completed.
Corrective actions
Do the non-financial recommendations shown on the Q Yes Q No
Non-Financial Screen in MATS agree with the
recommendations in the audit report, and do the
corrective actions shown on the same screen agree with
the corrective actions proposed in the management
decision letter?
Has a proposed completion date for each corrective action Q Yes Q No
been entered on the Non-Financial Screen?
Have the corrective actions and recommendations been Q Yes Q No
entered on the Non-Financial Screen in the format
recommended in the MATS Helpful Hints section of this
chapter?
Checklists Milestone Quality Assurance Checklists F - 5
-------
Quality Assurance Manual for MATS Information Management
Questions to ask when a notice of financial recovery is
received:
Partial Recovery
Is there a notice from Finance certifying that a partial d Yes D No
recovery (offset or accounts receivable collection) has
been received?
If the recovery is an accounts receivable collection, is the Q Yes Q No
payment amount (minus interest or penalty) entered in
the Collections field in MATS?
If the recovery is an offset, is the offset amount entered in Q Yes Q No
the Offsets field in MATS?
Has a comment been entered on the Non-Financial Q Yes D No
Screen to indicate that this is a partial recovery?
Final Recovery
Is there certification from Finance on the Financial Q Yes Q No
Information Worksheet that this is the final recovery?
If the recovery is an accounts receivable collection, is the Q Yes D No
payment amount (minus interest or penalty) entered in
the Collections field in MATS?
If the recovery is an offset, is the offset amount entered in Q Yes Q No
the Offsets field in MATS?
Does the sum of the amounts in the Offsets, Collections, Q Yes Q No
Value of Property, Other and Write-Offs fields equal the
original Dollar Value of Federal Funds Disallowed?
If Finance has determined that this is the final recovery, Q Yes Q No
and all non-financial corrective actions have been
completed, has a Final Action Done date been entered on
the Management Main Screen?
Checklists Milestone Quality Assurance Checklists F - 6
-------
Quality Assurance Manual for MATS Information Management
Questions to ask when a notice off appeal is received:
Appeal Information
Has the audit record in MATS been identified with the Q Yes Q No
proper appeal status?
Have comments about the appeal status been recorded on Q Yes Q No
the Non-Financial Screen when it is necessary to provide
a clear explanation?
If the grantee paid the Accounts Receivable pending Q Yes Q No
resolution of the appeal, was this amount recorded
correctly in MATS as a Collection on the Financial Screen
(with an explanation on the Non-Financial Screen)?
Questions to ask when the appeal is decided:
Status of the Audit
Has the audit been identified in MATS as no longer Qj Yes Q No
under appeal?
Has the date of the appeal decision letter been entered Q Yes Q No
onto the Non-Financial Screen?
If there are no longer any outstanding corrective actions, Q Yes Q No
Accounts Receivable, or Offsets, has a Final Action Done date
been entered in MATS?
Financial Information
Have all the financial adjustments resulting from the Qj Yes Ul No
appeal, if any are necessary, been made to the Accounts
Receivable, Offsets, Value of Property, Other, and Wnte-Offs
fields in MATS to ensure that the sum of these fields
equals the original Dollar Value of Federal Funds Disallowed?
Are all reinstated costs included in the Write-Offs field? Q Yes Q No
Checklists Milestone Quality Assurance Checklists F - 7
-------
Quality Assurance Manual for MATS Information Management
Questions to ask when final action is taken:
Dates
Is the Actual Decision date entered in MATS and is it the Q Yes Q No
date of the final management decision letter?
Is the Final Action Done date entered in MATS? Q Yes D No
Is the Final Action Done date later than or equal to the Q Yes Q No
Actual Decision date?
Corrective Actions
If there are non-financial corrective actions, have they all D Yes Q No
been certified as complete?
If there are completed non-financial corrective actions, D Yes FJ No
have they all been individually recorded as such with a
completion date on the Non-Financial Screen?
Financial information
Does the sum of Offsets, Collections, Value of Property, D Yes Q No
Other, and Write-Offs equal the original Dollar Value of
Federal Funds Disallowed 1
Does the sum of the Funds to Be Put to Better Use that Q Yes Q No
were completed and the Funds to Be Put to Better Use
that were not completed equal the original Better Use
Amount agreed upon by management?
Status of the Audit
Does MATS correctly show that the audit is not in D Yes O No
appeal?
Checklists Milestone Quality Assurance Checklists F - 8
-------
Quality Assurance Manual for MATS Information Management
Final Quality
Assurance Checklists
Purpose
This section presents checklists which should be used prior to
uploading the database to RMD via the RTF mailbox. It is crucial
that this quality assurance review be performed to verify the
completeness and accuracy of the data. This final quality
assurance review provides for one last critical look at the data
before the database is sent to RMD.
Checklists
This checklist contains three categories of questions. The
category of questions to be asked will depend on the status of the
audit being examined. The three categories of questions are:
A management decision has not been issued;
A management decision has been issued, but final action has
not been taken; and
Final action has been taken.
Using the
Checklists
To assure data quality, the person using the checklists should be
able to answer "yes" to all of the questions in these checklists. If
he/she must answer "no" to any of the questions, he/she should
obtain a reasonable explanation for the "no" answer. If the
explanation for the "no" answer helps to clarify the
completeness, accuracy, or timeliness of the MATS data, the
explanation should be entered on the Non-Financial Screen in
MATS.
Checklists
Final Quality Assurance Checklists
F-9
-------
Quality Assurance Manual for MATS Information Management
Final Quality Assurance Checklists
Questions to ask before the data is uploaded to RMD:
If a management decision has not been issued:
Has there been a check to ensure that a management Q Yes Q No
decision has actually not been issued?
Has a Proposed Decision date been entered into MATS? Q Yes QNo
If the management decision is 180 days past due, is there Q Yes Q No
an explanation for the delay with an estimate of when
the management decision is expected? (Refer to the Past
Due Explanation Guidance section of this chapter for
explanation and examples.)
If a management decision has been issued, but final action has not
been taken:
Is the Actual Decision date entered in MATS and is it the D Yes Q No
date of the final management decision letter?
Have the amounts of all accounts receivable and Q Yes Q No
recoveries been recorded in MATS?
Has the status of all corrective actions been recorded in Q Yes Q No
MATS, with explanations on the Non-Financial Screen
when it is necessary to provide a clear explanation?
Does the sum of Accounts Receivable, Offsets, Value of Q Yes Q No
Property, Other, and Write-Offs equal the Dollar Value of
Federal Funds Disallowed?
If the audit is in appeal, has the appropriate appeal status DYes QNo
been recorded in MATS?
If final action is 365 days past due, is a reasonable Q Yes Q No
explanation for the delay provided? (Refer to the Past
Due Explanation Guidance section of this chapter.)
Checklists Final Quality Assurance Checklists F-10
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Quality Assurance Manual for MATS Information Management
If final action has been taken:
Is the Actual Decision date entered into MATS and is it the Q Yes Q No
date of the final management decision letter?
Is the Final Action Done date entered into MATS and is it Q Yes Q No
the same as or later than the Actual Decision date?
If there are non-financial corrective actions, is there Q Yes Q No
certification that they have all been completed?
Has an amount equal to the original Accounts Receivable Q Yes Q No
either been received and recorded as Collections or been
reported as Write-offs?
Have any Write-Offs been certified and documented and Q Yes Q No
entered into MATS?
Does the sum of Offsets, Collections, Value of Property, Q Yes Q No
Other, and Write-Offs, equal the Dollar Value of Federal
Funds Disallowed?
Does the sum of the Funds to Be Put to Better Use that Q Yes Q No
were completed and the Funds to Be Put to Better Use
that were not completed equal the original Better Use
Amount agreed to by management?
Does MATS correctly show that the audit is not in d Yes Q No
appeal?
Checklists Final Quality Assurance Checklists F - 11
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Quality Assurance Manual for MATS Information Management
Reconciliation Checklists
Purpose
Reconciliation
With Action
Official Designee
This section provides checklists and guidance to help identify
errors and explain inconsistencies between the audit follow-up
data in various systems.
This checklist provides questions to ask the Action Official or the
Action Official's designee to help ensure that complete, accurate
and current audit information is recorded in MATS.
Reconciliation
Within MATS
This checklist should be used to help reconcile the various
financial data elements within MATS.
Reconciliation
With PATS
This checklist should be used to help reconcile the data in MATS
with the data in PATS (Prime Audit Tracking System), which is
managed centrally by the OIG.
Reconciliation
With ATR
This checklist should be used to help reconcile the data in MATS
with the data in ATR (Audit Tracking Report) which is managed
centrally by the Office of the Comptroller.
Using the
Checklists
To assure data quality, the person using the checklists should be
able to answer "yes" to all of the questions in these checklists. If
he/she must answer "no" to any of the questions, he/she should
obtain a reasonable explanation for the "no" answer. If the
explanation for the "no" answer helps to clarify the
completeness, accuracy, or timeliness of the MATS data, the
explanation should be entered on the Non-Financial Screen in
MATS.
Checklists
Reconciliation Checklists
F- 12
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Quality Assurance Manual for MATS Information Management
Reconciliation Introduction
Purpose of
Reconciliation
Reconciliation between the major systems containing audit
follow-up data is a critical component of a quality assurance
program. Reconciliation is the process of comparing and
assessing the accuracy of the data in each system. This does not
mean that the data elements in one system will always equal
the data elements in the other systems. Reconciliation can,
however, help the Audit Foliow-Up Coordinator, MATS
operator, or members of the Audit Follow-Up Coordinator's staff
evaluate the MATS database, and help to identify errors and
explain inconsistencies between the data in each system.
Exceptions
There are instances when inconsistencies might be expected to
occur including when:
A revised management decision letter has been issued;
More costs have been disallowed than the OIG originally
questioned; and
Costs have been reinstated as a result of grantee appeal.
Reconciliation
"Partners"
Monthly reconciliations should be conducted with four systems
or sources of information by comparing MATS data with:
Action Official or Dispute Decision Officer;
Other data elements within MATS;
PATS (OIG); and
ATR (Comptroller).
Checklists
Reconciliation Checklists
F- 13
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Quality Assurance Manual for MATS Information Management
Reconciliation Checklists
Reconciliation of MATS with Action Official Designee
Audits are sent by the OIG to the EPA Action Official (AO). Each month, the AO, or the
person the AO designated to resolve the audit, should be contacted to help answer these
questions for each audit.
Questions To Ask During Reconciliation:
Has the Proposed Decision date been checked with the AO Q Yes Q No
to ensure that it remains realistic?
Has the Action Official been contacted to see ifa Q Yes Q No
Management Decision has been issued?
Have the corrective action proposed completion dates Q Yes Q No
been checked with the AO to ensure that they remain
realistic?
Have the corrective actions statuses been checked with Q Yes Q No
the AO to ensure that they are correct and current?
Has the AO been contacted to ensure that reasonable D Yes Q No
explanations are available for not meeting 180 and/or
365-day deadlines? (Refer to the Past Due Explanation
Guidance section of this chapter for more information.)
Has the Action Official been checked with to determine if Q Yes Q No
a Final Action Done date can be entered in MATS?
Checklists Reconciliation Checklists F-14
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Quality Assurance Manual for MATS Information Management
Reconciliation Checklists
Reconciliation of Data within MATS
If an error message appears on the MATS Screen when data is being entered on the
Financial Screen, the message should be used to help reconcile data at that point. Each
month, the MATS reports identified below should also be used to help reconcile the
various financial data elements within MATS. Detailed information on the error
messages and reports can be found in the MATS Operator's Manual.
Questions To Ask During Reconciliation:
Does the Federal Funds Disallowed amount equal the sum Q Yes Q No
of the Accounts Receivable and the Offsets fields. (Use the
"Offsets + Accounts Receivable vs. Total Dollars
Disallowed" report in MATS to check this.)
Does the Federal Funds Disallowed amount equal the sum Q Yes Q No
of the Offsets, Collections, Value of Property, Other, and
Write-Offs fields. (Use the "Management Dollars
Disallowed vs. Management Grand Total" report in
MATS to check this.)
Checklists Reconciliation Checklists F-15
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Quality Assurance Manual for MATS Information Management
Reconciliation Checklists
Reconciliation of MATS with PATS
The Prime Audit Tracking System (PATS) is managed centrally by the OIG at
Headquarters, with data input by the Divisional Inspectors General for Audit. Each
month, after the download with the new OIG data has been received and the new
management information has been entered, work with the local OIG PATS contact to
compare and assess the data in MATS and PATS.
In case of a inconsistency between data on the OIG and Management Screens in MATS,
the inconsistency should be resolved locally. If management's data is incorrect, the data
on the MATS Screen should be revised. If the OIG's data is incorrect, the OIG should
revise the data in PATS so the revised data can be downloaded from PATS to the OIG
Screen in MATS.
The "OIG Disallowed vs. Management Grand Total" report that can be generated by
MATS should also be used to help with this reconciliation. All inconsistencies identified
in this report should be identified or explained on the Non-Financial Screen in MATS.
Questions To Ask During Reconciliation:
Is the OIG Close Date on the OIG Screen equal to or Q Yes D No
reasonably later than the Actual Decision date?
Does the Dollar Value of Federal Funds Disallowed amount Q Yes Q No
on the Financial Screen equal the Federal Funds Disallowed
on the OIG Screen? (Unless disallowed costs are greater
than the amount the OIG originally questioned, or there
is another reasonable explanation.)
Do both the Dollar Value of Federal Funds Disallowed and Q Yes Q No
the Federal Funds Disallowed include only Federal funds?
Do both the Dollar Value of Federal Funds Disallowed and Q Yes Q No
the Federal Funds Disallowed include the Federal share of
all projects covered by the management decision?
Do the Funds to be Put to Better Use Agreed on the Q Yes Q No
Management Better Use Screen equal the Agreed Funds
to Be Put to Better Use on the OIG Screen?
Do the Funds to Be Put to Better Use Agreed Upon Q Yes Q No
include only Federal funds?
Checklists Reconciliation Checklists F-16
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Quality Assurance Manual for MATS Information Management
Reconciliation Checklists
Reconciliation of MATS with ATR
The Audit Tracking Report (ATR) is managed centrally by the Office of the Comptroller
at Headquarters, with data entry by local Finance staff. Each month, the local Finance
Office should be contacted to compare and assess the data in MATS and ATR. The data
in these two systems should correlate closely. The questions in this checklist will help to
compare the fields in the two systems for each audit with financial data. Detailed
definitions of the MATS fields can be found in the MATS Operator's Manual. A diagram
entitled "Comparison of MATS and Audit Tracking Report (ATR) Fields" is also
included to help illustrate the comparison.
Questions To Ask During Reconciliation:
Does the Dollar Value of Federal Funds Disallowed field on O Yes Q No
the MATS Financial Screen equal the Questioned Costs
Sustained field in ATR?
Do the Dollar Value of Federal Funds Disallowed on the D Yes Q No
MATS Financial Screen and the Questioned Costs Sustained
field in ATR contain only the Federal share of disallowed
costs?
Does the Offsets field on the MATS Financial Screen equal D Yes Q No
the sum of the Offsets Before Billing field and the Offsets
After Billing field in ATR?
Does the Other field on the MATS Financial Screen equal Q Yes Q No
the Other field in ATR?
Does the Accounts Receivable field on the MATS Financial D Yes Q No
Screen equal the Accounts Receivable field in ATR?
Does the Write-Offs field on the MATS Financial Screen Q Yes Q No
equal the sum of the Amount Written Off field and the
Adjustments Thru Appeal Decision field in ATR?
Does the Collections field on the MATS Financial Screen Q Yes O No
equal the sum of the Cash Collections Before Billing field
and the Amount Collected field in ATR?
If a Final Action Done date is entered in MATS is the Net Q Yes Q No
Balance Outstanding in ATR zero?
Checklists Reconciliation Checklists F-17
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o
(D
O
5T
55
E>
Comparison of MATS and
Audit Tracking Report (ATR) Fields
MATS Field
Federal Funds Disallowed
Offset
o
o
=*
o
O
(D
O
OT
5>
Other
Accounts Receivable
Write-Offs
Collections
Tl
CO
ATR Equivalent
Questioned Costs Sustained
Offsets before Billing +
Offsets after Billing
Other
Accounts Receivable
Amount Written Off +
Adjustments Thru
Appeal Decision
Cash Collections before Billing +
Amount Collected
0<5
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Quality Assurance Manual for MATS Information Management
Suggested Practices
Purpose This section provides helpful hints for using MATS and for
providing explanation for past due audits that have exceeded the
180-day management decision deadline or the 365-day final
action deadline.
MATS Helpful These helpful hints address how to use and manage MATS in an
Hints effective and efficient manner.
Past Due These helpful hints contain two separate sets of hints. The first
Explanation set concerns audits that have not had a management decision
Guidance issued within 180 days of the audit report issuance. The second
set of hints concerns audits that have not accomplished final
action within 365 days of their final management decisions.
Checklists Suggested Practices F-19
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Quality Assurance Manual for MATS Information Management
MATS Helpful Hints
RMD Assistance
If any difficulties operating MATS arise, contact RMD for
assistance.
If uncertainty exists concerning how to "fit" data into MATS,
contact RMD for advice and guidance.
Maintain frequent contact with RMD in Headquarters to stay
informed about national and local issues, and to keep
Headquarters alert to new local developments.
Using MATS
Back-up the system at least once a month just prior to the upload
to RMD.
1) Enter the Utilities Function.
2) Choose Backup from the Menu.
3) Follow the on-screen prompts.
Be familiar with the Reports section of MATS. Take the time to
experiment with the various reports. These reports provide
many benefits including:
Highlighting inconsistencies that may signal potential errors;
Highlighting what audits have a past due management
decision;
Highlighting what audits have past due final action;
Highlighting what audits are in appeal;
Highlighting changes to the database; and
Allowing quick access to information about a broad group of
audits.
Use the Proposed Decision date to set deadlines for determining
when the management decision letter should be completed.
This practice facilitates efficient tracking of the audit follow-up
process.
Checklists
MATS Helpful Hints
F- 20
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Quality Assurance Manual for MATS Information Management
Reinstated
Costs
Final Action
After an appeal, if there are reinstated costs, record these costs in
the Write-Offs field in MATS.
Aggressively check with the Action Official to determine if final
action has been taken so that a Final Action Done date may be
entered into MATS.
Take final action when all financial recoveries have been
completed and all non-financial corrective actions have been
completed.
Do not take final action until the appeal period has expired, in
case the audit is appealed during that period. If the audit is
appealed, do not take final action until the appeal is decided.
Not taking final action in both of these situations will prevent
management from reporting to the Administrator and Congress
that final action has been taken on an audit in one period, only
to discover that the audit actually is in appeal and final action is
not complete.
Corrective
Action Tracking
Make the Non-Financial Screen summaries of
recommendations and corrective actions brief, but descriptive
enough to stand on their own.
The format for the recommendations and corrective actions on
the Non-Financial Screen should be:
A brief summary of the recommendation;
A brief summary of the corrective actions proposed by
management;
The proposed completion date; and
The actual completion date.
An example corrective action format:
Rec: The Region needs to be more aggressive in collecting penalties.
Corrective Actions: Institute a new system for tracking penalties.
Set deadlines for collection. Review collections on a monthly basis.
Proposed Date
11/15/90
Actual Date
11/12/90
Checklists
MATS Helpful Hints
F-21
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Quality Assurance Manual for MATS Information Management
Past Due Explanation Guidance
Required Past The MATS database requires explanations detailing why audits
Due Explanations are not resolved within 180 days past their issuance or why final
actions are not completed within 365 days of their final
management decisions. MATS automatically processes this
information into table form for incorporation into the
semiannual reports to Congress. The following guidance
identifies what information needs to be included in these
explanations. MATS data fields are shown in italics..
Checklists Past Due Explanation Guidance F - 22
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Quality Assurance Manual for MATS Information Management
Audits without Management Decisions 18O Days
After Issuance of Final Audit Report
Explanation for
Past Due
Management
Decisions
An Actual Decision must be issued and agreed to by the Office of
Inspector General (OIG) within 180 days of audit report issuance,
or an explanation is required along with the expected date. This
explanation should be entered on the Past Due Screen.
If the 180-day time limit is approaching and no management
decision has been issued, contact the program official responsible
for resolution to determine if the management decision is going
to be past due.
When a management decision is late, ascertain the reason for
the delay prior to the 180-day limit as well as an estimate of
when the management decision will be accomplished. This
information is provided to the OIG for inclusion in its
Semiannual Report to Congress.
Explanation
Procedures
In the Management Audit Tracking System (MATS), the
following procedure should be followed:
1) Change the Proposed Decision date to reflect the estimate
provided by the program office.
2) Access the Past Due Screen. The cursor will immediately be
placed on the first space of the four lines available for past
due comments.
3) Type a narrative not to exceed four lines that explains
why the management decision is late and provides the new
proposed management decision date. The explanation
should be clear and explain why resolution was not achieved.
Identify issues in contention as concisely as possible within
the limited space. Remember that the Agency sends this
information to Congress, so it must reflect the Agency's
efforts accurately.
4) Since the Past Due Screen only provides limited space, the
AFC or MATS operator may supplement these comments
with additional information about the audit or its follow-up
activities. This information may be entered into the Non-
Financial Screen.
Checklists
Past Due Explanation Guidance
F-23
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Quality Assurance Manual for MATS Information Management
Past Due Examples of past due comments for audits without a
Explanation management decision 180 days after audit report issuance:
Examples r
Acceptable
The OIG disagreed with the proposed final determination letter
(FDL) submitted on November 15,1991. It is currently being
revised to incorporate the OIG's comments. The FDL should be
issued by March 31,1992.
or
The management decision was delayed in order to review the
grantee's extensive October 15, 1991 response to the proposed
decision. The final determination letter should be issued by
December 31,1991.
Unacceptable
The final determination letter was issued on October 5, 1991.
This explanation was provided for the last semiannual report
which covered the period April I - September 30, 1991.
Although it indicates when the audit was finally closed, it does
not provide any explanation for why the final action was
delayed. Every audit that is past due at any time during the
report cycle requires a comment, even if management action
eventually occurs.
or
The proposed management decision is currently being reviewed
by the OIG. Management's response was delayed to resolve an
outstanding issue with the grantee regarding allowable costs.
This response is vague and a new estimated completion date was
not provided.
Checklists Past Due Explanation Guidance F - 24
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Quality Assurance Manual for MATS Information Management
Audits with No Final Action 365 Days After Final
Management Decision
Explanation for
Past Due Final
Action
Final action must be taken (i.e. all corrective actions completed,
Accounts Receivable collected, and Offsets completed) within 365
days of the final management decision or an explanation is
required.
If the 365-day time limit is approaching and final action has not
been taken, contact the appropriate official to determine its
status. This could be:
Finance - to see if FMD expects the grantee to pay soon;
Regional Counsel - to see if the audit is in appeal; or
Action Official - to see if non-financial corrective actions will
be completed on time.
Explanation
Procedures
When final action exceeds 365 days, ascertain the reason for the
delay as well as an estimate of when the final action will be
accomplished. In MATS, the following procedure should be
followed:
1) Access the Past Due Screen.
2) Type a narrative not to exceed four lines that provides the
reason why final action has not been taken. Your
explanation should:
identify what action or actions have caused the delay;
state the reason for the delay and its impact on the
corrective action plan;
estimate when final action is now due for completion;
be clear and concise.
Remember, Congress receives this information. It must
reflect the Agency's efforts accurately.
3) Since the Past Due Screen only provides limited space, the
AFC or MATS operator may supplement these comments
with additional information about the audit or its follow-up
activities. This information may be entered into the
Management Non-Financial Screen.
Checklists
Past Due Explanation Guidance
F-25
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Quality Assurance Manual for MATS Information Management
Past Due Examples of past due comments for audits with no final action
Explanation 355 days after its management decision:
Examples J ฐ
Acceptable
The grantee's corrective action plan required the grantee to
develop and maintain detailed records of its general fixed assets
by September 1991. Progress was delayed by a computer system
procurement. Final action will be completed by March 31, 1992.
or
A revised Small Purchase Acquisition Guide, reflecting OIG
findings, was scheduled for release by December 1991. It was
delayed by a lengthy legal review by the General Counsel's
Office. Final action should now be completed by June 1, 1992.
Unacceptable
Final action should be completed by the end of the second
quarter.
Does not describe either the action being delayed or why it is
being delayed.
Task force was required to conduct a review of regional office
procedures. Review procedures had to be re-evaluated after the
first two site visits to accurately measure performance.
No final action date is provided.
Checklists Past Due Explanation Guidance F - 26
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GLOSSARY OF TERMS
Action Official
and/or Dispute
Decision Official
Action Officials are either the respective Regional
Administrators or Assistant Administrators, or more commonly
individuals designated by them. This individual is responsible
for ensuring that timely, adequate responses and determinations
are transmitted on findings and recommendations contained in
audit reports and that both monetary and non-monetary actions
are implemented.
Appeals
The appeals process begins when a grantee or contractor submits
a letter appealing management's final decision, and ends with
the issuance of an appeal decision letter issued by the Assistant
Administrator or Regional Administrator.
Audit
An assessment of government performance that is conducted in
accordance with General Accounting Office (GAO) standards, or
parts thereof. EPA management tracks OIG special assignments
and reports as well as audits in the Management Audit Tracking
System (MATS).
Audit Follow-Up
For Office of the Inspector General (OIG) audits, the activity that
occurs between the issuance of an audit report and the
completion of the final corrective actions as entered in the
Management Audit Tracking System (MATS). This process
includes obtaining information from the OIG and EPA
management, and updating MATS with the information.
Audit Follow-Up
Coordinator
(AFC)
Every region and Headquarters office has an Audit Follow-Up
Coordinator (AFC) who is designated by and reports to the Audit
Management Official (AMO). The AFC has day-to-day
responsibility for the overall audit management, response and
resolution process within a Headquarters or regional office. The
AFC acts as a focal point for all audit follow-up information,
coordinates with financial and program managers, and meets
with senior management on a regular basis to keep them
informed of audit management status. Please see full
description on page B-6 of this manual.
-------
Audit Follow-Up
Official
The Assistant Administrator for Administration and Resources
Management is the Agency Follow-Up Official. This official is
responsible for: Agency-wide audit resolution and
implementation of corrective actions; coordinating Agency-wide
policy issues with the Office of the Inspector General (OIG);
informing senior EPA officials of sensitive and significant audit
issues so they give appropriate consideration to these issues; and
ensuring that audit resolution occurs in a timely and effective
manner.
Audit
Management
Official (AMO)
Each Assistant Administrator designates the director of his/her
central management office as the Audit Management Official
(AMO). This individual is responsible for the audit
management program. Regionally, the Assistant Regional
Administrator (ARA) is the AMO. This official sets high level
policies and procedures for audit resolution problems and
oversees the audit management process in their region.
Responsibilities include ensuring the timely completion of audit
resolution, tracking corrective action, and resolving outstanding
audit issues. Please see full description on page B-6 of this
manual.
Audit Report
A written report that states the scope of the audit and includes
all pertinent findings and recommendations.
Audit Resolution
Audit resolution occurs when the Office of the Inspector General
(OIG) and management come to agreement on needed follow-up
action. At this point, the OIG closes the audit in the Prime Audit
Tracking System (PATS).
Audit Resolution
Board
The Audit Resolution Board (ARE) reviews disputed or delayed
resolutions of internal and external audits and decides the
official and final Agency position on these resolutions.
Audit Resolution
Group
An advisory staff to the Audit Resolution Board (ARB)
responsible for: analyzing issues referred for ARB decision;
developing recommendations for the ARB on disputed
resolutions; and mediating disputes, where possible, in lieu of
formal ARB decisions. This staff is located within the Resource
Management Division of the Office of the Comptroller.
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Disallowed Costs
A questioned cost that management, in a management decision
letter, agreed should not be charged to the Government.
EPA Order 2750
EPA Order 2750 - Management of EPA Audit Reports and Follow-Up
Actions serves as the formal EPA directive establishing audit
terminology, assignment of responsibilities, a time frame for the
implementation of corrective actions, and the process for
resolving internal and external audits. This directive serves as
guidance for all programs and activities involved in the audit
resolution process.
Final
Determination
Letter (FDL)
The Action Official's statement to the auditee detailing EPA
management's final decision on the audit findings and
recommendations.
Finance Officer
This individual is the servicing Financial Management Officer
located in regional offices and Headquarters who provide the
MATS Operator and/or Audit Follow-Up Coordinator (AFC)
with certification that accounts receivable and/or offsets have
been established for an audit and collections have been
completed. This individual also informs the MATS Operator
and/or AFC when an accounts receivable has been referred to a
Collections Officer. Please see full description on page B-7 of this
manual.
Financial Audits
Financial audits include financial statement and financial
related audits.
Financial statement audits determine (1) whether the financial
statements of an audited entity present fairly the financial
position, results of operations, and cash flows or changes in
financial position in accordance with generally accepted
accounting principles, and (2) whether the entity has complied
with laws and regulations for those transactions and events that
may have a material effect on the financial statements.
Financial related audits include determining (1) whether
financial reports and related items, such as elements, accounts,
or funds are fairly presented, (2) whether financial information
is presented in accordance with established or stated criteria, and
(3) whether the entity has adhered to specific financial
compliance requirements.
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Funds To Be Put
to Better Use
A recommendation by the Office of the Inspector General (OIG)
that funds could be used more efficiently if management took
actions to implement and complete the recommendations.
These can include: reduction in outlays; de-obligation of funds
from programs or operations; withdrawal of interest subsidy
costs on loans or loan guarantees, insurance, or bonds; costs not
incurred by implementing recommended improvements related
to the operations of the establishment, a contractor or grantee;
avoidance of unnecessary expenditures noted in pre-award
reviews of contract or grant agreements; or any other savings
which are specifically identified.
Indirect Cost
Audits
A review and evaluation conducted to determine whether an
assistance recipient's or contractor's prospective or incurred
indirect cost rate properly allocates costs allowable under Federal
cost principles.
Inspector
General Act
Amendments
of 1988
The Inspector General Act Amendments of 1988 establishes a
semiannual reporting system to Congress for all Federal
Agencies and Inspectors General. The Inspectors General reports
include Questioned Costs, Disallowed Costs, Recommendations
that Funds Be Put to Better Use, Funds to Be Put to Better Use
Agreed to Amounts in Management Decisions, and explanations
of why management decisions have not been issued within 180
days of the audit report issuance. The management reports
include Disallowed Costs, Funds to Be Put to Better Use Agreed
to Amounts in Management Decisions, and explanations of why
any final actions have not been completed within one year after
their management decision was issued.
Inspector
General Act
of 1978
The Inspector General Act of 1978 provides the Office of the
Inspector General with the authority to conduct audits to
promote economy, efficiency, and effectiveness and to prevent
and detect fraud and abuse in programs and operations. The Act
also provides a means for keeping Congress fully and currently
informed about problems and deficiencies in programs and the
need for progress on corrective action.
-------
MATS Operator
This individual manages and coordinates the collection and
entry of all Management Audit Tracking System (MATS) data
and compiles supporting documentation. Please see full
description on page B-6 of this manual.
Management
Audit Tracking
System (MATS)
The Management Audit Tracking System (MATS) is
management's automated information system to collect, track,
and report required audit follow-up information for the
semiannual report to Congress.
Management
Decision
The evaluation by management of the findings and
recommendations included in an audit report and the issuance
of a final decision by management concerning its response to
such findings and recommendations, including actions
concluded to be necessary.
Office of the
Inspector
General (OIG)
The Office of the Inspector General (OIG) issues the audit report
and the initial Prime Audit Tracking System (PATS) download
which indicates Federal Funds Questioned, Better Use Funds
Recommended, Final Report Date, and audit identifying
information. A subsequent OIG download indicates Federal
Funds Disallowed, Better Use Funds Agreed, and OIG Close Date.
Please see full description on page B-7 of this manual.
OMB Circular
A-50
OMB Circular A-50 - Audit Follow-Up provides the policies and
procedures for agencies to follow for audit resolution. The
Circular specifies the roles of audit follow-up officials and the
Inspectors General and establishes procedures for audit
resolution. It also requires the establishment of a system to
monitor and to track the progress of corrective actions, the
implementation of audit recommendations, and the
documentation of improved accounting and collection controls.
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OMB Circular
A-128
OMB Circular A-128 - Audits of State and Local Governments, in
response to the Single Audit Act of 1984, requires audits for
entities with expenditures of Federal monies totalling more than
$25,000 or 3% of federal expenditures, whichever is greater.
Governments receiving less than $25,000 are exempt from any
audit requirements. In addition, A-128 requires that all instances
of "material" findings be reported for both major and non-major
programs and that audit reports identify all amounts questioned
for each federal program.
Performance
Audits
Performance audits include economy and efficiency and
program audits.
Economy and efficiency audits include determining (1) whether
the entity is acquiring, protecting, and using its resources (such
as personnel, property, and space) economically and efficiently,
(2) the causes of inefficiencies or uneconomical practices, and (3)
whether the entity has complied with laws and regulations
concerning matters of economy and efficiency.
Program audits include determining (1) the extent to which the
desired results or benefits established by the legislature or other
authorizing body are being achieved, (2) the effectiveness of
organizations, programs, activities, or functions, and (3) whether
the entity has complied with laws and regulations applicable to
the program.
Position Paper
A statement representing an OIG area of concern which is
circulated prior to a draft report to ascertain reviewee feedback
before publication of a draft report.
Post-Award
Audits
Interim and Final Cost Audits are types of post-award audits. A
post-award audit is a review and evaluation conducted to assess,
at a minimum, the allowability of costs claimed or reported
under the assistance agreement or contract and to ensure
compliance with applicable statutes, regulations, and terms and
conditions of the award. These audits may include a review of
incurred direct costs and the assistance recipient's or contractor's
policies, procedures, and practices that influence and control
grant contract costs.
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Pre-Award
Audits
A review and evaluation conducted to determine whether
prospective cost or pricing data submitted were current, accurate,
and complete. The review may include an assessment of the
assistance recipient's or contractor's accounting, procurement,
and property management systems.
Prime Audit
Tracking System
The Prime Audit Tracking System (PATS) is the Office of the
Inspector General's (OIG) system to track audits from assignment
through resolution for semiannual reporting to Congress.
Questioned Cost
A cost that is questioned by the Office of the Inspector General
(OIG) because of: an alleged violation of a provision of a law,
regulation, contract, grant, cooperative agreement, or other
agreement or document governing the expenditure of funds; a
finding that, at the time of the audit, the cost is not supported by
adequate documentation; or, a finding that the expenditure of
funds for the intended purpose is unnecessary or unreasonable
Recoveries
A financial recovery is an actual recovery by the Agency of
monies to an established accounts receivable. Recoveries are
comprised of collections, offsets, value of property, and other.
Collections - The Federal share of costs that are disallowed in
the management decision for recovery and are subsequently a
"cash" collection from the auditee.
Offsets - The Federal share of costs that are disallowed in the
management decision for recovery from the grantee that are
offset against future payments to the auditee.
Value of Property - The value of property recovered from the
auditee to satisfy the conditions of the management decision.
Other - All other recoveries not included in one of the other
three classifications.
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Resource
Management
Division (HMD)
The Resource Management Division (RMD) manages the
Agency's audit management process including audit follow-up
and audit resolution. RMD is the national systems
administrator for the Management Audit Tracking System
(MATS). RMD is located within the Office of the Comptroller
which is under the Office of Administration and Resources
Management.
Single Audit
Single audits examine the financial operations of a state or local
government to ensure a grantee is in accordance with generally
accepted accounting and financial procedures. They also
examine whether the government has established internal
control systems to provide reasonable assurance that Federal
monies are managed in compliance with applicable laws and
regulations. Single Audits are for entities which receive $25,000
or more of Federal money.
Special Reports
Any work conducted by the Office of the Inspector General (OIG),
other than an audit conducted in accordance with audit
standards, that seeks to promote economy and efficiency or
prevent or detect fraud and abuse. The following are examples
of special reports:
Allegation Review - Review of allegations received through the
Office of the Inspector General (OIG) hotline, correspondence,
personal visits, etc., concerning an activity or auditable function.
Desk Review/Agreed Upon Procedures Review - A review
performed by the Office of the Inspector General (OIG) with
limited analysis of a claim (in contrast to an audit).
Early Warning System Review - The analysis of information for
projects with potential problems at an early stage to limit the
potential severity of the problem.
Special Review - A review that responds to an Office of the
Inspector General (OIG) need for a quick turn-around analysis of
significant issues facing the Agency. Special reviews are not
meant to be detailed audits. Reports are generally provided to
senior executives to identify issues and obtain corrective action
in less time and with fewer resources than an audit would take.
Special Reports are conducted under the authority of sections
4(a)(3), 6(a)(2), and 7(a) of the Inspector General (IG) Act of 1988.
For purposes of follow-up, desk reviews and early warning
system reviews are handled as if they were external audits under
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EPA Order 2750. Allegation reviews and special reviews may
either be handled as external audits or as internal audits under
EPA Order 2750.
Unsupported A cost that is questioned by the Office of the Inspector General
Cost (OIG) because the OIG found that, at the time of the audit, the
cost was not supported by adequate documentation.
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