Transcript DHSMV PPT Template

Specialty License Plates
Division of Motorist Services
Bureau of Issuance Oversight
September 26, 2013
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Meeting Objectives
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Welcome
Department Introductions
Specialty License Plate Update/Overview
Legislative Changes
Attestations/Auditing
Office of Inspector General
Redesign Process
Specialty License Plates Online
Questions and Answers
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Welcome
Department of Highway Safety and
Motor Vehicles
Providing highway safety and security through
excellence in service, education and enforcement.
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Introductions
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Julie Baker, Chief, Bureau of Issuance Oversight
Alan Busenbark, Bureau of Issuance Oversight
Paula Stanfield, Bureau of Issuance Oversight
Jeanette Collins, Bureau of Issuance Oversight
David Ulewicz, Office of the Inspector General
Cindy Fernald, Office of the Inspector General
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Florida Specialty License Plates
• 120 Specialty License Plates Currently Available
• Moratorium ends July 1, 2014
• Division Policy RS-20
– Under revision
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Florida Specialty License Plates
Pre-Sale Vouchers
• Organization has 24 months to record a minimum of
1,000 voucher sales
• Pre-sales of 1,000 meet the requirement of a survey
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Florida Specialty License Plates
2012 Legislation (Ch. 2012-181, Laws of Florida):
Amended section 320.08056, F.S., to prohibit annual
use fees from the sale of specialty license plates to be
used for lobbying an elected member or employee of
the Legislature.
2013 Legislation added:
• American Legion
• Big Brothers Big Sisters
• Lauren’s Kids
• Freemasonry
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Florida Specialty License Plates (SLP) Website
http://www.flhsmv.gov/specialtytags/SLP.html
USE OF FUNDS – allowable expenses
Affidavit Forms and Instructions
Florida Specialty License Plates (SLP) Website
http://www.flhsmv.gov/specialtytags/
ReportingRequirementsTrainingAid.pdf
USE OF FUNDS – Allowable expenses
Specialty License Plates Use of Funds
• All Organizations must ensure proceeds are
used in accordance with law
• Procedures & Requirements
– Definitions
– Procedures
– Statutes & Resources
– Contact Information
• Review Statutes (specific and general) and
these Procedures & Requirements annually as
a reminder
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Specialty License Plates Use of Funds
• Allowable Expenditures
– Start-up costs
– Program and project costs
– Administrative costs
– Promotion and marketing costs
– Annual audit or compliance affidavit costs
• If NOT specified in law, it is disallowable. If
the percentage is exceeded, it is disallowable.
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Specialty License Plates Use of Funds
• Start-up Costs
– Expenses for “starting-up” a specialty license plate
– Start up expenses can only be considered an allowable
expense prior to the sale of the first specialty license
plate
– Reminder that all lobbying expenses prohibited as of
January 1, 2013.
– Record and maintain an itemized list of all start-up
costs
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Specialty License Plates Use of Funds
• Program Expenses - incurred solely for purposes
provided in law. Generally include:
– Salaries of employees and officers
• time sheets – active participation in programs
– Office supplies, equipment, travel, paper, printing,
postage, internet site, contracted goods and
services if directly associated with program
purpose
– Grants - solicitation and award process per law
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Specialty License Plates Use of Funds
• Administrative Costs – operating costs of entity
– Permitted only if specifically stated
– Permitted up to the percentage specified in law
– Examples include bookkeeping and support
services, and other payroll and expenses not
directly related to programs
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Specialty License Plates Use of Funds
• Promotion and Marketing Expense
– Permitted only if specifically stated
– Permitted up to the percentage specified in law
– Examples include
• Website
• Mass media advertisements
• Mail-outs and postage
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Specialty License Plates Use of Funds
Annual Audit or Compliance Affidavit Costs
• Audit fees for Florida Single Audit (F.S. 215.97)
– permitted in the ratio of expenditures of SLP fees
to all other state financial assistance expenditures
for the fiscal year (F.S.215.97(8)(k))
• Compliance Affidavit preparation fees
– Permitted for the actual preparation costs (does
not include normal accounting function expenses)
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Specialty License Plates Use of Funds
• Disallowed Expenses
– Any expenditure of SLP fees that does not comply
with Florida Statutes
– Any expenditure, whether authorized or not, that
cannot be substantiated with a detailed employee
time sheet, or a receipt and cancelled check.
• Receipts (or invoices) should include relevant details of
services provided, dates, etc.
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Specialty License Plates Use of Funds
• Always unallowable–FS 320.08056 (10 and 11)
– Commercial or for-profit activities
– General or administrative expenses unless
specifically allowed by FS 320.08058 (or for
certain audit or attestation costs)
– Lobbying
• if a ‘lobbying’ firm provides other allowable
services, invoices need to adequately describe
the ‘non-lobbying’ services
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Specialty License Plate Audit or Attestation
• If expended less than $500,000 in any type of State
financial assistance from any State agency or not-forprofit entity
File an Attestation (Affidavit Form)
with DHSMV within 9 months of entity’s fiscal year end
• Otherwise, CPA audit in accordance with F.S. 215.97
(Florida Single Audit). Filed with DHSMV and Auditor
General within 9 months of entity’s fiscal year end.
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Specialty License Plate Attestation
• Annually attest, under penalties of perjury,
proceeds were expended in compliance with
law
• Within 90 days of receipt – Department will
determine compliance
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Florida Specialty License Plates (SLP) Website
• Affidavits Forms and Instructions
All about affidavits
http://www.flhsmv.gov/specialtytags/slpaudit.html
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Office of the Inspector General
• Is an office within the Department of Highway Safety and
Motor Vehicles and reports directly to the executive
director.
• Section 20.055, Florida Statutes establishes an Office of
Inspector General in each state agency.
• The Inspector General is responsible for promoting
accountability, integrity, and efficiency in government.
• Audits are conducted in accordance with the International
Standards for the Professional Practice of Internal Auditing
as published by the Institute of Internal Auditors.
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Audit Types conducted by CPA firms
for Specialty License Plate (SLP) recipients
• May be required by entity by-laws or policy or other
funding agencies
– Financial Statement Audit
– Federal Single Audit
• Required by F.S. 215.97, F.S. (related rules – Ch. 69I-5,FAC)
– Florida Single Audit (FSAA) if entity expends a total amount
of state financial assistance (SFA), of $500,000 or greater,
during the entity’s fiscal year from ANY source
• Various audit types above will be consolidated by the CPA if
multiple types are needed
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FSAA - Schedule of Expenditures of Federal
Awards and State Financial Assistance
F
E
D
FFWCC
DHSMV Direct
SLP Pass-through
DACS
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FSAA – Summary of Audit Results
MAJOR
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Audits by DHSMV Inspector General (IG)
• Statutory Authority – F.S. 320.08062(3)
• Purpose - Determine compliance with use of SLP funds
– statutes, DHSMV website guidance, good business practices
• Scope – generally most recent 2 years of data – will go
back further in certain circumstances
• Methodology
– Preliminary (planning)
– Fieldwork (in Tallahassee and at your office)
– Reporting
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DHSMV IG Audit Methodology
• Preliminary
– Initial contact – phone call
– Written engagement letter (email)
– Entrance conference (usually by phone)
• CEO, accountant, person familiar with use of SLP fees
• Identify contact person
• Request records (electronic) – general ledger
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DHSMV IG Audit Methodology
• Fieldwork
– After off-site review of preliminary records:
• Schedule an office visit
• Review supporting documentation
– Consider additional written and verbal information
– Communicate any known issues before leaving site
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DHSMV IG Audit Methodology
• Reporting
– Auditor’s work reviewed by supervisor; findings and
recommendations discussed with Motorist Services
– Exit Conference (by phone)
– Written ‘preliminary findings’ (email)
– Entity response due in 20 working days; will be
included in audit report
– Final report provided to entity, and available to
interested parties
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DHSMV IG Audit Methodology
• On-site coordination goal:
Efficient on-site review for your entity and DHSMV IG
Minimize time – Maximize Information
– Work on two entities in same geographic area
– Will be in the area 2-3 days
– Key to success – knowledgeable contact person
with sufficient authority committed to finalizing all
outstanding issues
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DHSMV IG – Recent Audit Findings
related to Specialty License Plates
• The organization did not maintain detailed supporting
documentation for expenditures funded with specialty license
plate fees.
• The organization did not maintain detailed timesheets for
employee salary expenses funded with specialty license plate
fees.
• The organization used specialty license plate fees for program
expenses not authorized by statute.
• The organization used specialty license plate fees for
unallowable audit expenses not authorized by statute.
• The organization used specialty license plate fees for
unallowable startup or establishment expenses.
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DHSMV IG - Recent Audit Findings
related to Specialty License Plates
• The organization used specialty license plate fees for
administrative expenses not authorized by statute.
• The organization exceeded the percentage of specialty
license plate fees that is authorized for annual
administrative expenses.
• The organization engaged in related party transactions.
• The organization used specialty license plate fees for
unallowable education and advocacy, educational
consulting, or government relations expenses
(lobbying).
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Specialty License Plates
Keys to Maximizing Compliance
• Ensure key staff:
– Review Statutes and DHSMV Guidance regularly
– Review FSAA Catalog and Compliance Supplement
• All laws regarding use of funds apply even if your entity
does NOT hit the $500,000 threshold (all state funds)
• https://apps.fldfs.com/fsaa/index.aspx
– Discuss with your CPA if they are familiar with
State compliance auditing
– Talk to Motorist Services Staff
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Specialty License Plates - Keys to Ensuring
the Trust of Donors and the Public
• Current knowledge of regulatory requirements
• Continued familiarity of SLP compliance when staffing
changes occur
• Work Environment with high regard for compliance and
integrity
• Accounting System -separate identification and reporting
of SLP revenues and expenditures
• Adequate records retention
• Adequate (clear and complete) invoice descriptions
• Willingness to contact DHSMV staff with questions
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DHSMV IG --- 2013-14 Audits
• Entities which received more than $100,000
and have not been audited by the DHSMV IG
or had a F.S. 215.97 single audit recently
• Proposed “pool” of entities – can change
throughout the year.
…..ALL ENTITIES…..
Data Collection and
Preliminary Survey Site Visits
Contact: Cindy Fernald
[email protected]
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Redesign Process
Organization may not request a redesign of the specialty
plate unless:
• The inventory of those plates has been depleted
• The organization purchases the remaining inventory
of the specialty license plates from the department at
cost
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Redesign Process
• Submit letter of intent to redesign, agree to purchase
remaining stock and artwork
• Counties issue their current stock
• Electronic and metal plates will be submitted to
organization for approval
• Metal plates are reviewed by Florida Highway Patrol
for legibility
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Redesign Process
• Once approved by organization, an order for plates will
be sent to PRIDE
• PRIDE notifies Department of final stock and invoice
• Department notifies organization of final buyout
amount - stock at PRIDE and tax collector offices
• Buyout check MUST be received before new design is
sent to county offices
• Redesign process is approximately 6 – 9 months
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Specialty License Plates Online
Agreement with Tax Collectors Association was
terminated earlier this year
Developing new functions at www.GoRenew.com to
allow purchasing specialty license plates
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During renewal
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Outside of renewal
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Personalized
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Specialty License Plates
Thank You
Division of Motorist Services
Bureau of Issuance Oversight
(850) 617-3001
[email protected]
Audits/Attestations
(850) 617-3870
[email protected]
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