Kansas State University

External Audits

Chapter 3260

Issued June 11,1997

Table of Contents

.010 Introduction

.020 Requirements

.030 Responsibilities

.040 Procedures

.050 Questions

Kansas State University is an agency of the State of Kansas and, therefore, is subject to the State audit guidelines. The Kansas audit guidelines are defined in Kansas Statutes 46-1101 through 1127. These audit guidelines were established under the Legislative Post Audit Act. These statutes established a Legislative Post Audit Committee to oversee the State Division of Post Audit which is responsible for the auditing of State agencies.

Kansas State University receives a substantial amount of Federal awards each year and is, therefore, subject to the Federal Office of Management and Budget (OMB) Circular A-133 "Audits of State, Local Governments, and Non-Profit Organizations". This circular, issued under the Federal Single Audit Act, requires an annual single or program - specific audit according to a specified expenditure threshold. A single audit includes an examination of both the entity's financial statements and its Federal awards. A program - specific audit is an audit of one Federal program only.

Sponsoring entities may also conduct periodic special audits on selected sponsored funds as they deem necessary.

Kansas Statutes Annotated 46-1106 (Legislative Post Audit Act) requires the Legislative Division of Post Audit to provide for a regular audit presence in every State agency by requiring that audit work be conducted once every three years. Audit work done in addition to the annual financial statement audit focuses on compliance with legal and procedural requirements and on the adequacy of the audited agency's internal control procedures in areas not covered by the annual audit.

Federal OMB Circular A-133 currently requires a single or program specific audit of any year in which expenditures of Federal awards are $300,000 or more. Because the University expends more than $300,000 under more than one Federal program each year, it is included in the annual statewide single audit.

As part of its responsibilities, the Division of Legislative Post Audit is charged with meeting the requirements of the Legislative Post Audit Act which addresses audits of financial matters. Those requirements call for two major types of audit work. The act first calls for an annual audit of the State's financial statements. Those statements are audited by a certified public accounting firm under contract with the Legislative Division of Post Audit and includes Circular A-133 audit requirements.

The second type of audit work focuses on compliance with legal and procedural requirements and on the adequacy of the audited agency's internal control procedures in areas not covered by the annual audit.

Audit reports, generated by the Division of Legislative Post Audit, will be furnished to the Governor, Director of Accounts and Reports, Director of the Budget, the state agency which is audited, the Legislative Post Audit Committee, and such other persons or agencies as required by law or by the specifications of the audit.

The State Division of Post Audit coordinates the Single State Wide Audit which includes the Federal requirements. Since the majority of the records under review are maintained in the Division of Financial Services, the external audits are coordinated through that office. However, the Internal Audit Department is involved with the Single State Wide Audit on certain activities under review.

Questions relating to external audits are to be directed to the Controller's Office, telephone number (785) 532-6210.