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AGENDA
- Matters Required to be Communicated
Washington Health Benefit Exchange 2014 Audit Results Discussion - - PowerPoint PPT Presentation
Washington Health Benefit Exchange 2014 Audit Results Discussion - - PowerPoint PPT Presentation
Washington Health Benefit Exchange 2014 Audit Results Discussion with the Board 1 AGENDA Matters Required to be Communicated with Those Charged with Governance 2 DRAFT REPORT OF INDEPENDENT AUDITORS ON THE FINANCIAL STATEMENT Unmodified
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DRAFT REPORT OF INDEPENDENT AUDITORS ON THE FINANCIAL STATEMENT
Unmodified Opinion
Financial statements and supplementary information are presented fairly in accordance with accounting principles generally accepted in the United States of America.
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OTHER DRAFT AUDITOR’S REPORTS
GAGAS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
- Finding 2014‐001 – Financial Close and
Reporting Process – Significant Deficiency OMB A‐133 Report for the Major Federal Program and Internal Control over Compliance
- Qualified Opinion on Major Program ‐ Finding
2014‐002
- Reporting
- Material Weakness in Internal Controls Over
Compliance
- Material Instance of Noncompliance
- Finding 2014‐003 – Procurement, Suspension
and Debarment – Significant Deficiency in Internal Control Over Compliance
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OUR RESPONSIBILITY UNDER U.S. AND GOVERNMENT AUDITING STANDARDS AND OMB CIRCULAR A-133
As stated in our engagement letter, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit in accordance with generally accepted auditing standards issued by the AICPA and the Comptroller General of the United States, and to design the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. We are also responsible for communicating significant matters related to the financial statement audit that, in our professional judgment, are relevant to your responsibilities in
- verseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Our audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures but not for the purpose of expressing an opinion
- n the effectiveness of the entity’s internal control
- ver financial reporting. Accordingly, we
considered the entity’s internal control for the purpose of determining our audit procedures and not to provide assurance concerning such internal control.
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MATTERS TO BE COMMUNICATED TO THE GOVERNING BODY
There is no requirement to revisit entrance communications unless something significant has changed. The timeline communicated during the planning discussions was delayed to provide management more time to address
- pen audit items. We relayed the change to
the Audit and Compliance Chair on September 3rd. The due date for all data collection forms was extended to October 31 (previous due date was September 30 for the Exchange) as a result of a federal clearinghouse IT security issue. Entrance Communications The audit scope, timing and our responsibilities as your auditors was communicated in the engagement letter and planning discussions with the Audit and Compliance Committee on May 18, 2015.
Moss Adams Comments Matters to Be Communicated
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MATTERS TO BE COMMUNICATED TO THE GOVERNING BODY
The quality of the Exchange’s accounting policies, underlying estimates and disclosures are summarized here and discussed throughout this presentation:
- Accounting practices/policies – summarized
in financial statements Note 1
- Significant accounting estimates ‐ Useful
lives of software and equipment
- Disclosures – Complete and accurate
disclosure in accordance with GAAP/GASB
- Accounting policies, accounting estimates,
and financial statement disclosures were deemed reasonable Significant Accounting Practices Our views about qualitative aspects of the entity’s significant accounting practices, including accounting policies, accounting estimates, and financial statement disclosures
Moss Adams Comments Matters to Be Communicated
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MATTERS TO BE COMMUNICATED TO THE GOVERNING BODY
No significant difficulties were encountered during our audit of the Exchange’s financial statements. No material misstatements, corrected or uncorrected, were identified as a result of our audit. Significant difficulties encountered during the audit Corrected and Uncorrected Misstatements
Moss Adams Comments Matters to Be Communicated
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MATTERS TO BE COMMUNICATED TO THE GOVERNING BODY
There were no disagreements with management. Consistent with years past, your CEO and CFO will be asked to sign the representation letter before delivery of the final financial statements. Disagreements With Management Disagreements with management, whether
- r not satisfactorily resolved, about matters
that individually or in the aggregate could be significant to the Company’s financial statements, or the auditor’s report. Representations requested of management We requested certain representations from management that are included in the management representation letter that will be signed when the financial statements are finalized
Moss Adams Comments Matters to Be Communicated
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MATTERS TO BE COMMUNICATED TO THE GOVERNING BODY
To our knowledge, there were no such consultations with other independent accountants. No significant issues arose during the audit that have not been addressed elsewhere in this presentation. Management’s consultation with other independent accountants Significant issues arising from the audit that were discussed, or the subject of correspondence with management
Moss Adams Comments Matters to Be Communicated
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MATTERS TO BE COMMUNICATED TO THE GOVERNING BODY
There were no material weaknesses or significant deficiencies identified that were not already reported as findings. Internal Control Related Matters
Moss Adams Comments Matters to Be Communicated
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