Compliance
BFS built its business in the Compliance arena, providing oversight over billions of dollars in State and Federal Funds, while providing monitoring and other services to hundreds of Subrecipients. Backed by collective decades of experience, BFS has the know-how, tools, and experience to execute at any level. BFS Proudly offers Peer Review, Construction Audit, Internal Audit, and Perfomance Audit services.
Peer Review for Government Entities
Performing an Internal Audit Peer Review within the framework of both the International Professional Practices Framework (IPPF) and the Generally Accepted Government Auditing Standards (GAGAS) involves addressing specific challenges unique to the public sector. The combination of these two sets of rules adds layers of complexity to the review process. Internal Audit Peer Reviews in the context of both IPPF and GAGAS involves addressing challenges related to the complex nature of government functions, reconciling differences between two sets of standards, ensuring compliance with the legal and regulatory landscape, navigating political considerations, and accounting for resource constraints. Successful peer reviews require a nuanced approach that acknowledges the unique characteristics of the public sector while upholding professional standards. Keep Reading
One challenge is reconciling the differences between the IPPF, which is designed for internal auditors in various industries, and GAGAS, which specifically applies to audits of government entities. Internal auditors must navigate between these frameworks, ensuring that the review meets the expectations of both sets of standards. This requires a deep understanding of the nuances and specific requirements of each framework.
Another challenge lies in the multifaceted nature of government functions. Public-sector organizations often have diverse missions, ranging from regulatory activities to service provision, and may operate across multiple sectors. Ensuring compliance with the specific legal and regulatory landscape of the government sector is crucial. GAGAS includes requirements related to auditing standards, independence, and reporting, all of which may differ from private-sector norms. BFS possesses experience and expertise to evaluate the effectiveness of internal audit functions across these varied activities while adhering to the relevant standards.
BFS Peer Reviewers have worked as auditors in the government sector, so we understand the political considerations which may impact Internal Audit Peer Reviews in government entities. We understand the different structures of state and local governments that can pressure or influence independence and objectivity. We understand how navigating the political landscape while upholding professional standards can impact the internal audit processes of the government entity.
Government entities may face limitations in terms of staffing, technology, and budget. Having worked in government audit, BFS understands how these limitation impact internal audit operations and consider these constraints when evaluating the adequacy and effectiveness of the internal audit function, recognizing the practical challenges faced by government organizations.
Elevate your organization's commitment to professional excellence and unwavering quality standards by choosing BFS for your next Peer Review. Take the next step toward excellence – reach out to us today.
Construction Audit
Construction audits play a crucial role in minimizing risks, ensuring transparency, and enhancing the overall success of construction projects. They are valuable tools for project owners, stakeholders, and contractors to achieve project objectives efficiently and cost-effectively. This is even more important if the project is government or mixed funding. At BFS we focus on the critical aspects that keep your project on-time and on-budget.
Looking to reinforce the financial integrity of your construction project? BFS' specialized audits serve as your defender, ensuring that your project stays on budget, adheres to proper procedures, and complies with relevant regulations. In our unwavering commitment to tailored solutions, we complement these with custom assessments designed expressly for your project’s unique needs. Keep Reading
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What is covered during a BFS Construction Audit?
Cost Control and Compliance:
Budget Adherence:
Review project budgets to ensure that expenditures align with the approved budget
Davis Bacon:
Review contractor payments and supporting documents for compliance with DBA
Forced Accounts:
Review of forced labor, materials, equipment accounts to ensure consistent and accurate reporting, which is especially important for reimbursement of federal funds related to construction
Standard Contract Calculations:
Create standard contract calculations during the course of our review, such as:
• EV: Earned Value
• PV: Planned Value
• AC: Actual Cost
• BAC: Budget at Completion
• CPI: Cost Performance Index
• ETC: Estimate to Complete
Schedule Adherence:
Timeline Compliance:
Review project schedules to determine if construction activities are progressing as planned, including a calculation of Schedule Performance Index (SPI) and ETC
Delays and Mitigation:
Identification of potential delays and other risks associated with Change Order Management and Schedule Slippage.
Change Order Management:
Review of Change Orders:
Assess the necessity and appropriateness of change orders, ensuring they are properly documented and approved.
Cost Implications:
Evaluate the impact of change orders on project BAC, PV, AC, and schedule.
Contractual Compliance:
Review of Procurement Process:
Verify compliance funding and regulatory compliance for purchasing with federal or state funds.
Review of Contractual Agreements:
Verify compliance with the general terms and conditions outlined in contracts including evaluation of subrogation clauses.
Insurance Compliance:
Verify insurance coverage to ensure it aligns with contract requirements including subcontractors.
Documentation and Record Keeping:
Document Review:
Review project documentation for completeness and accuracy, including invoices, change orders, and other relevant records.
Record Retention:
Ensure that proper records are maintained for auditing purposes and compliance with legal and regulatory requirements.
• Insurance Compliance: Verify insurance coverage to ensure it aligns with contract requirements including subcontractors.
Success Stories
Disaster Funding:
Over 10 years of experience providing capital and infrastructure audits related to grants and disaster recovery efforts. Our work has spanned over $10B in project value across multiple construction areas including labor and contract compliance, Forced Accounts, EVC and AVC and procurement. Specializing in government and blended funding projects.
Public-Private-Partnerships:
Performed oversight and reporting of the VA Public-Private-Partnerships (P3s) to establish goals, performance metrics as well as developed requisite Congressional reporting. This effort included monitoring, oversight and reconciliation of third-party (P3) escrow and fiscal accounts to ensure proper recording of In-Kind considerations for appropriate reporting on the VA’s annual financial statements.
Reach out to our dedicated team today. Seize this opportunity; invest in your project's future and experience the BFS difference. Get in touch now – your project deserves nothing less than our unparalleled expertise.
Governmental Internal Audit
At BFS, we are committed to delivering exceptional internal audit services tailored explicitly for governmental entities. We uphold the highest ethical standards in our work to ensure the integrity of your organization. Our approach combines expertise, ethical principles, and customized solutions to empower your organization in achieving its goals while maintaining compliance with pertinent regulations. Whether through co-sourced or outsourced, BFS establishes an independent and objective assurance, empowering organizations to evaluate and enhance the effectiveness of risk management, controls, and governance processes. Keep Reading
Expertise in Governmental Matters:
With BFS, you achieve more than audits—you unlock a strategic partnership. We work closely with our clients to ensure a collaborative and transparent process, keeping them informed every step of the way. Our years of experience in managing federal and state accounting standards, combined with a profound understanding of financial regulations and reporting requirements, set us apart in the industry. We simplify compliance, streamline reporting, and fortify operational integrity. Our team possesses in-depth knowledge of public sector matters and a strong understanding of governmental accounting standards.
Acknowledging the distinctiveness of each organization, we provide tailored solutions designed to address its specific needs. Co-sourced, outsourced or a mix of both, BFS can customize a solution to fit your needs. BFS knows that understanding the intricacies of government structures, policies, and regulations is crucial. A good internal auditor should have a solid grasp of government operations and the specific challenges faced by public sector entities. BFS understands the critical need for excellent communication, diplomacy, and tact. Our encounters with clients occur via virtually, face-to-face, e-mail, and telephone. Our staff interacts with executives, managers, fiscal personnel, field personnel and others. That’s why excellent interpersonal and communication skills are an essential part of our auditor proficiency portfolio.
At BFS, our Senior Partner, serves as the North American Representative on the Institute of Internal Auditors (IIA) Global Public Sector Advisory Board, providing invaluable input and insights concerning the implications of the International Professional Practices Framework (IPPF) and other guidance within the dynamic realm of the public sector. Our Senior Partner's active involvement on this global platform signifies not only a testament to her expertise but also to BFS's commitment to shaping the landscape of internal auditing in the public sector.
BFS’s proven internal audit methodology focuses on partnering with clients to develop a tailored assessment of their risks – mission, financial, operational, compliance, as well as any others that are pertinent to the client’s mission objectives. This ensures our audit focus is on the areas of the highest risk and importance to management in the achievement of its mission objectives.
BFS has a multidisciplinary team of professionals with extensive experience. Our staff receive continuous training on current trends, new standards, and innovative skills to stay at the top of our profession. We maintain a robust pool of employees who are assigned to various projects when matched with knowledge, skills, and abilities requirements. For projects requiring highly specialized skills, such as Cyber and Forensics, we look to our longtime partners, and our vast network of colleagues, to find just the right specialist for the job.
BFS has been recognized for its commitment to quality, excellence, and collaboration with its clients. We have extensive experience in – and expert knowledge of – internal audit policy, standards, practices, business, and financial operations, leading them to perform work for a variety of governmental clients including the Texas State Auditors Office (SAO), Cancer Prevention Institute of Texas (CPRIT), Texas Health and Human Services Commission (HHSC), Texas Department of Emergency Management (TDEM), Texas Education Agency (TEA) and University of Texas (UT Austin). BFS is also the subcontract of choice to several top accounting firms because we provide high quality services at reasonable prices. We pride ourselves on keeping our costs lower than the big firms while still providing high quality services.
BFS Top Internal Audit Services:
• Risk Assessment
• Compliance Audits
• Operational Audits
• Financial Audits
• Performance Audits
• Fraud Investigations
• Internal Controls Review
At BFS, we are committed to providing high-quality and effective internal audit services to governmental entities. With our expertise, knowledge, ethical approach, and tailored solutions, we can help your organization achieve its goals and objectives while ensuring compliance with relevant regulations. Choose BFS as your internal audit partner and witness the positive impact on your agency's efficiency, effectiveness, and ethical integrity. Contact us today for reliable and experienced internal audit services tailored to governmental entities.
Performance Audit
A performance (audit) review is an evaluation of an organization’s operations, activities, or programs to assess their efficiency, effectiveness, and adherence to established standards and objectives. It goes beyond financial audits by focusing on the outcomes and impacts of its actions and whether they align with its goals and mission. Performance reviews aim to provide an independent and objective assessment of an organization’s performance to drive improvements and accountability. Keep Reading
Performance reviews promote transparency and accountability by objectively assessing performance and identifying areas that require attention or corrective action. The main objective is to identify strengths, weaknesses, and areas for improvement. This is achieved through a systematic review of processes, procedures, and practices to determine if they are achieving desired outcomes and if resources are being utilized effectively. BFS takes a three-pronged approach to evaluate process, systems, and people/positions. This, in turn, helps to improve the organization’s efficiency, effectiveness, and ultimately, its overall performance.
During a performance review, BFS gathers evidence through various methods such as interviews, data analysis, and document reviews. We assess performance against predetermined criteria such as industry standards, best practices, and internal policies and procedures. The observations of a performance review are then presented in a formal report that includes recommendations for improvement based on the identified areas of weakness or inefficiency.
At BFS, our team of experienced auditors specializes in conducting performance audits to evaluate the achievement of organizational objectives, the effectiveness of programs and processes, and the efficiency of resource utilization. Our approach combines industry best practices, data analysis, and stakeholder engagement to deliver actionable insights and recommendations.
Key Features of our Performance Audit Services:
Program Evaluation:
Our team conducts evaluations of programs and initiatives to assess their effectiveness in achieving intended outcomes. We analyze program design, implementation strategies, performance metrics, and stakeholder feedback to identify areas for improvement and provide actionable recommendations.
Efficiency and Resource Utilization:
We evaluate the efficiency and economy of resource allocation and utilization. Our experts assess organizational practices, processes, and systems to identify inefficiencies, duplication of efforts, and opportunities for cost savings. We provide recommendations to streamline operations and optimize resource allocation.
Governance and Risk Management:
We examine governance structures and risk management practices to assess their effectiveness in promoting accountability and minimizing risks. Our team evaluates the clarity of roles and responsibilities, decision-making processes, and internal control frameworks to enhance governance practices and minimize vulnerabilities.
Stakeholder Engagement:
We actively engage with stakeholders throughout the performance audit process, seeking input and feedback to ensure a thorough and balanced assessment. We collaborate with management, staff, and external parties to gather insights, address concerns, and ensure the relevance and reliability of our audit findings and recommendations.
Success Stories:
Increased visibility, understanding and focus on statewide compliance issues, concerns and risks for a large state agency. Implemented a statewide process for measuring and reporting various federal requirements for the State of Texas for over $9B in federal funds.
For another state agency, perform compliance audits of awards covering $2.3 billion in scientific research, product development, and cancer prevention research. This project has significant stakeholder engagement and risk mitigation for to assess program effectiveness.
Choose BFS for objective and results-oriented Performance Audit services that will help your organization achieve optimal performance and drive meaningful impact. Contact us today to discuss how we can assist your organization in achieving its goals.