UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

RUS BULLETIN 1780-17

RD-GD-2000-36

SUBJECT: Review Guide for Water Program Audit

TO: RUS Water and Environmental Programs Staff.

EFFECTIVE DATE: April 21, 2000

OFFICE OF PRIMARY INTEREST: Water and Environmental Programs.

INSTRUCTIONS: 

AVAILABILITY: This Bulletin is available on the Internet at

http://www.rurdev.usda.gov/RDU_Bulletins_Water_and_Environmental.html

PURPOSE: 

DISCLAIMER: The contents of this guidance document does not have the force and effect of law and is not 

meant to bind the public in any way. This document is intended only to provide clarity to the public regarding 

existing requirements under the law or agency policies.
RUS Bulletin 1780-17

1 (Revised 4/00)

 REVIEW GUIDE FOR

WATER PROGRAMS AUDITS

DATE REPORT RECEIVED DATE REVIEW COMPLETED DATE ENTERED IN RCFTS

REVIEW APPROVED (SIGNATURE) TITLE

BASED UPON MY REVIEW, THE AUDIT IS CONSIDERED: ACCEPTABLE - NO FOLLOW-UP __________

 ACCEPTABLE - MINOR FOLLOW-UP __________

UNACCEPTABLE - REQUIRES

 SIGNIFICANT FOLLOW-UP __________ 

• Organization Name: ___________________________________________________________

• City: __________________________________________ County: __________________

• Type of Organization: Public Body: _____ Nonprofit: _____ Indian Tribe: _____

• Auditor’s Name: ______________________________________ Audit Date: __________

REVIEW ITEMS SHOULD BE RESPONDED TO AS FOLLOWS: Y (YES); N (NO); N/A (NOT APPLICABLE).

REVIEW ITEMS REQUIRING WRITTEN EXPLANATION SHOULD BE REFERENCED BY ITEM NUMBER AND

DETAILED IN THE NOTES BELOW.

General Review

Review Item Response

1. Was the audit report and accompanying information received within

150 days of the end of the borrower’s fiscal year? __________

2. Does the audit report cover a 12-month period? __________
RUS Bulletin 1780-17

2 (Revised 4/00)

Auditor’s Report

Review Item Response

 3. Did the auditor sign and date the Auditor’s Report? __________

 4. Does the Auditor’s Report include a statement that the audit was conducted

in accordance with generally accepted auditing standards (GAAS) and

generally accepted government auditing standards (GAGAS)? __________

5. Does the Auditor’s Report include a statement that the financial statements

were prepared in accordance with generally accepted accounting principles

(GAAP)? Note: If the financial statements were prepared on a basis other

than GAAP, did the auditor disclose the nature of the variance

(i.e., cash basis, modified cash basis)? __________

 6. Did the auditor issue an unqualified opinion? Note: If an unqualified

opinion was not issued, did the auditor disclose the reason(s) for the

qualification in the Auditor’s Report? __________

Financial Statements

Review Item Response

 7. Did the borrower submit a complete set of financial statements:

a. Balance Sheet/Statement of Financial Position; __________

b. Statement of Revenue and Expense/Statement of Activities; __________

c. Statement of Cash Flows. __________
RUS Bulletin 1780-17

3 (Revised 4/00)

Financial Statements

Review Item Response

8. Does a review of the financial statements disclose any items that require

follow-up by Rural Development (i.e., unusual items, negative balances, etc.)? __________

9. Does the audit report contain the following supplemental reports:

a. Report on Compliance and Internal Control Based on an Audit

Performed Under GAGAS; __________

b. Schedule of Findings and Questioned Costs; and __________

c. Corrective Action Plan. __________

10. Did the auditor sign and date the Report on Compliance and Internal

Control Based on an Audit Performed Under GAGAS? __________

11. Does the Report on Compliance and Internal Control include a

statement that the audit was conducted in accordance with generally

accepted government auditing standards (GAGAS)? __________

12. Do the notes to financial statements disclose any significant deficiencies,

noncompliance with RUS regulations, contingent liabilities, illegal acts,

or other items that require follow-up by Rural Development? __________

Audit Resolution

Review Item Response

13. Did the auditor issue audit findings that require follow-up by the borrower? __________
RUS Bulletin 1780-17

4 (Revised 4/00)

Audit Resolution

Review Item Response

14. If audit findings were issued, did the borrower submit a corrective

action plan that addresses each audit finding? __________

15. Are there any items in the corrective action plan, Report on Compliance

and Internal Control, or Schedule of Findings and Questioned

Costs that require follow-up by Rural Development? __________

REF No. REVIEW NOTES (Detail deficiencies, telephone contacts, follow-up, etc.)