Guardianship Audit Workshop

Transcription

1 Guardianship Audit Workshop 11:10 a.m. 12:00 p.m. Tuesday, June 2 th Summer Conference 1

2 Panel Members Lita McHugh, CPA, CIG Inspector General, Polk County Bob Melton, CPA, CIA, CFE Inspector General, Lake County Anthony Palmieri, JD, CIA, CCSA Senior Internal Auditor, Palm Beach County 2

3 Meeting Objectives Review 2014 legislative changes Promote use of Guardianship Best Practices Discuss common situations encountered Promote consistency in treatment of issues Examine guardianship audit tools 3

4 Presenter Lita McHugh, CPA, CIG Inspector General for Stacy M. Butterfield, CPA Polk County Clerk of Court & Comptroller 4

5 Workshop Overview Common situations or issues encountered Issues with guardianship reports Issues with guardian Unusual or questionable transactions Tools to prevent fraud, waste or abuse Brief update on legislation 5

6 Disbursements Red flags that can signal trouble Shared household expenses Unspecified debit card purchases Credit card purchases Vehicles Vacations Failure to keep receipts 6

7 Transfers of Funds May help identify unreported assets Trusts Capital assets Unreported bank accounts Outright theft of funds 7

8 Strategies for Audit Audit what you can Keep communications open with attorneys Exhaust your options for voluntarily provided info and documentation Is it theft or just bad accounting? Be ready to move quickly to prevent loss Use legal tools when necessary 8

9 Stacy M. Butterfield, CPA Polk County Clerk of the Circuit Court and County Comptroller Lita McHugh, CPA, CIG Inspector General (863) Polk County Clerk

10 Presenter Bob Melton, CPA, CIA, CFE, CIG Inspector General for Neil Kelly, Lake County Clerk of Courts 10

11 Trusts Scenario 1: The trust existed prior to the guardianship and no guardianship assets have been transferred into the trust and the guardian is not the trustee NOT SUBJECT TO AUDIT Scenario 2: Guardianship assets have been transferred into the trust and the guardian is not trustee Statements are to be provided but not an annual accounting LIMITED AUDIT (unless exempted by the Court) 11

12 Trusts (cont.) Scenario 3: Guardian is trustee of the trust Annual accounting must be prepared SUBJECT TO AUDIT 12

13 Valuation of Property Real Estate Licensed Appraisal, BPO, or competitive market analysis. Review Zillow for reasonableness. Vehicles Kelly Blue Book or NADA. Include mileage. Ask for pictures. Household Goods Valuation from Dealer if possible. Ask for pictures. 13

14 Abandonment/Foreclosure Guardian Stops Making Payments on Home Requires a court order Usually because the home is upside down with the mortgage Is it in the best interest of the ward OR the attorney and guardian? 14

15 Attorney & Guardian Fees Review for Reasonableness Lesser rate for paralegal work Reasonable time for tasks Attorney fees charged only for attorney activities No charges for correcting mistakes 15

16 Failure to File On Time What are your options? Send out delinquency notice (Probate) Set show cause hearing Note the delinquent filing on the audit 16

17 Neil Kelly Lake County Clerk of Court and Comptroller Bob Melton, CPA, CIA, CFE Inspector General Division of Inspector General (352)

18 Presenter Anthony Palmieri, JD, CIA, CCSA Senior Internal Auditor with Sharon R. Bock, Esq. Palm Beach County Clerk & Comptroller 18

19 Clerk s Guardianship Fraud Hotline PINELLAS CO. PALM BEACH CO. POLK CO. 19

20 Guardianship Auditing Tools Public Awareness Homeowner s Associations Civic and social groups Elder service providers Churches and other places of worship Community Outreach Attorneys Professional Guardians Non-Professional Guardians 20

21 Professional Guardians Big Bend Broward Co. Central Florida Gulf Coast Heart of Florida Hillsborough Co. La-Mar Beach Mid Florida Palm Beach Co. South Florida Southwest Florida Space Coast Treasure Coast 21

22 Clerk s Panel at FSGA Conference Everything You ve Always Wanted to Ask Your Clerk Plenary Session July 24 th at 3:00 PM 22

23 Non-Professional Guardians 23

24 Guardianship Auditing Tools Global Analysis LexisNexis Accurint Social Media Sunbiz.com Department of Business & Professional Regulation RedFin.com & Zillow.com 24

25 Sharon R. Bock, Esq. Palm Beach County Clerk and Comptroller Anthony Palmieri, JD, CIA, CCSA Sr. Internal Auditor Division of Inspector General (561)

26 Panel Members Lita McHugh Telephone: Bob Melton Telephone: Anthony Palmieri Telephone: