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Organization Title

Audit Process

Introduction

  • ETP audits determine if Contractors complied with ETP Agreements, regulations, and policies
  • Information shown here briefly summarizes routine ETP Audit processes
  • Auditors will provide detailed information and guidance throughout an actual audit

Authority and Reference

Audit Selection

  • Agreements are selected by ETP for audit each calendar year
  • Selected Contractors are notified in advance of the audit in writing
  • Auditors work with Contractor representatives to schedule an on-site audit visit

Audit Standards, Scope, and Objectives

  • ETP audits adhere to Generally Accepted Government Audit Standards (GAGAS)
  • ETP audit processes are subject to review per GAGAS2014 GAGAS Peer Review
  • Audit scope is limited to compliance with ETP Agreements, regulations, and policies
  • Auditors plan and perform procedures to obtain a reasonable assurance of compliance
  • Audit objectives are to determine:
    • Trainees were eligible and met ETP training requirements
    • Training records met ETP standards and support paid training hours
    • Trainees met ETP retention requirements as specified in Agreements
    • Trainees met ETP wage requirements as specified in Agreements
    • Cash receipts reconcile with ETP disbursement records
    • ETP funding was not overlapped or duplicated by other funding
    • Administrative subcontractors were not paid over ETP cap
    • ETP trainees were not charged fees

Required Contractor Records

  • ETP auditors typically need to obtain and review:
    • ETP enrollment and training records maintained by the Contractor
    • Records of trainee employment during training and retention*
    • Records of post-retention wage rates*
    • Health benefits paid by employers, if required to meet ETP wage rate*
    • Accounting and business records relevant to ETP Agreements
    • *For MECs, participating employers are asked to verify employment data

Formal Notice of Audit Results

  • ETP audit reports note the performance of Contractors
  • Audit reports may include findings of non-compliance
  • Noteworthy Accomplishments of Contractors may also be included
  • Draft Audit Reports are issued if audit findings show unearned costs
  • Contractors can respond to draft reports within 15 calendar days
  • Revisions to audit findings are considered based on any response
  • Contractor Responses are included in Final Audit Reports
  • Auditors comment on Contractor Responses in Final Audit Reports
  • Final Audit Reports are issued after the draft report process
  • Invoices for repayment of unearned costs are included, if required

 

Audit Appeal Rights

  • Appeals of adverse audit findings can be made to ETP's Executive Director
  • Appeals must be in writing and can include supporting documentation
  • Appeals must be made within 30 days of the receipt of the Final Audit Report
  • Full instructions for appeal are included in Final Audit Reports

Conclusion

  • Suitable to public interest, ETP audits are conducted from an independent, unbiased position
  • ETP Auditors seek to provide positive benefits to the public and ETP Contractors
  • ETP Auditors should provide objective feedback that may lead to improved performance
  • ETP Auditors must use professional judgment, as required by Government Audit Standards
  • The information above provides only a general overview of typical ETP audit processes
  • Audit procedures could be modified and/or expanded per Government Audit Standards

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