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I M S TMOORE STEPHENS <br /> LOVELACE CPAs & ADVISORS <br /> ' Substantive Testing(cont.) <br /> IUtilities <br /> • Testing of utility billings, including verification that: • Testing of bonds payable, including verification <br /> that: <br /> I o Amounts billed for services rendered are valid o Debt is authorized and properly recorded. <br /> and have been billed to customers at o All indebtedness of the City's municipal <br /> authorized rates. utilities is identified, recorded, and <br /> I o Unbilled service revenues are appropriately disclosed. <br /> reflected in the proper accounting period. o Compliance with provisions of indentures <br /> o An adequate allowance for doubtful accounts and agreements related to debt, including <br /> I has been established and the related amounts provisions on use of proceeds. <br /> and disclosures are properly presented in the o Debt service expenditures (principal and <br /> financial statements. interest payable) are properly recorded, <br /> Iclassified, and disclosed. <br /> o Arbitrage calculations are reasonable and any <br /> liability, if applicable, is properly recorded. <br /> I o Debt and related restrictions, guarantees, <br /> and commitments are properly presented <br /> and that related disclosures are adequate. <br /> 1 Grants <br /> • Evaluate and test controls over compliance • Ascertain that grants are administered and <br /> requirements. revenues and expenditures are recorded in <br /> I .I <br /> Ascertain status and resolution of prior-year accordance with applicable provisions and <br /> 1{�� findings and questioned costs, if applicable. related laws and regulations. <br /> • Test grant revenue through confirmation with • Ascertain that grant-related amounts are <br /> grantor agencies to ascertain appropriateness of properly presented and related disclosures <br /> Iclassification. concerning restrictions and compliance are <br /> • Ascertain that grant revenues and expenditures adequate. <br /> charged to grant programs are valid and • Identify major federal programs and major <br /> 1 complete and, if applicable, indirect costs are state projects using risk-based approach, if <br /> properly allocated. applicable. <br /> • Determine threshold for Type A and Type B • Evaluate and test controls over direct and <br /> I programs based on grant expenditures, if material compliance requirements, if <br /> applicable. applicable. <br /> • Ascertain status and resolution of prior-year <br /> Ifindings and questioned costs, if applicable. <br /> I <br /> I <br /> I <br /> I <br />