The Audit Program

Introduction

 

Significant Changes

i

 

Other Changes/Updates for 2007-2008

v

 

Overview

ix

 

Outline for Comprehensive Annual Financial Report (CAFR)

xii

 

 

 

Section I: General Compliance

 

Chapter 1 - Appointment, Scope and Declaration

I-1.1

 

Chapter 2 - Meetings and Minutes

I-2.1

 

Chapter 3 - ASSA & DRTRS

I-3.1

 

Chapter 4 - Budget & Transfers

I-4.1

 

Chapter 5 - Bids & Contracts/Purchasing

I-5.1

 

Chapter 6 - Chart of Accounts/Expenditure Classification

I-6.1

 

Chapter 7 – Reserved

I-7.1

 

Chapter 8 - Year End Procedures - Closing Out for GAAP

I-8.1

 

 

 

Section II: Specific Compliance 

II-i

Governmental Funds  

 

General Fund

 

 

Fund 10 (General Fund):

 

 

Board Secretary and Treasurer Reports

II-10.1

 

Cash Reconciliation

II-10.1

 

Petty Cash Funds

II-10.1

 

SAS #70 Reports

II-10.2

 

Third Party Disbursements

II-10.2

 

Investments

II-10.2

 

Revenues and Receipts

II-10.3

 

Extraordinary Aid

II-10.4

 

District Taxes

II-10.4

 

Tuition (N.J.A.C. 6A:23-3)

II-10.5

 

Reporting On-Behalf Payments

II-10.6

 

Compensation Reporting

II-10.6

 

Pensionable Wages

II-10.7

 

Refunds

II-10.8

 

Telecommunications Act of 1996 (E-rate)

II-10.8

 

Cancellations

II-10.8

 

Travel Expenditures

II-10.8

 

Health Insurance Policies

II-10.12

 

Sale and Lease-back Contracts

II-10.13

 

Required Maintenance

II-10.14

 

Schedule of Required Maintenance Expenditures

II-10.14

 

Restricted Appropriations/Balances

II-10.14

 

Capital Reserve Account - General Fund

II-10.16

 

Excess Surplus

II-10.18

 

Fund Balance Classifications

II-10.22

 

Fund 20 (Special Revenue Fund):

 

 

TPAF Reimbursement

II-20.1

 

Demonstrably Effective Program Aid (DEPA)

II-20.3

 

Preparing the DEPA Restricted Aid Schedule

II-20.6

 

Early Childhood Program Aid

II-20.11

 

Preparing the ECPA Restricted Aid Schedule

II-20.11

 

Distance Learning Network Aid and Instructional Supplement Aid

II-20.17

 

Preparing the Distance Learning Network Aid Schedule

II-20.18

 

Preparing the Instructional Supplement Aid Schedule

II-20.20

 

Preparing the Targeted At-Risk Aid (TARA) Restricted Aid Schedule

II-20.22

 

Capital Projects, Debt Service, & Permanent Funds

 

 

Fund 30 (Capital Projects Fund):

 

 

Bond and Note Authorizations

II-30.1

 

General Borrowing Authority

II-30.1

 

Bond Sales and Capital Projects Fund Activities

II-30.3

 

Capital Project Approval under EFCFA

II-30.3

 

Unexpended Bond Proceeds

II-30.4

 

Unexpended Project Funds - Other Funding Sources

II-30.4

 

School Construction Corporation (SDA) Grants under EFCFA

II-30.5

 

Overexpenditures

II-30.5

 

Rebatable Arbitrage

II-30.6

 

Secondary Market Disclosure

II-30.6

 

Lease Purchase Agreements

II-30.6

 

Financial Reporting

II-30.7

 

Fund 40 (Debt Service Fund):

 

 

District Taxes

II-40.1

 

Debt Service Aid

II-40.1

 

Reporting

II-40.1

 

Budget Transfers

II-40.1

 

Fund 50 (Permanent Fund):

 

 

GASB 34 Model for Permanent Funds

II-50.1

Proprietary & Fiduciary Funds/Capital Assets & Long-Term Debt

 

Fund 60 (Proprietary Fund):

 

 

Proprietary Funds

II-60.1

 

Food Service - Enterprise Fund

II-60.1

 

SAS #70 Reports

II-60.3

 

Sample Food Service Invoices and Allocations

II-60.4

 

Child Nutrition Program Requirements

II-60.9

 

National School Lunch Rate Schedule

II-60.15

Internal Service, Trust, and Agency Funds/Capital Assets & Long-Term Debt

 

Fund 70 (Internal Service Funds):

II-70.1

 

Fund 80 (Trust Funds):

 

 

Trust Fund Reporting

II-80.1

 

Unemployment Trust Fund

II-80.1

 

Section 457 Deferred Compensation Plan

II-80.2

 

Fund 90 (Agency Fund):

 

 

Agency Funds

II-90.1

 

Student Activity

II-90.1

 

Organizations Under the Auspices of the School

II-90.1

 

Fund Raising in Schools by Outside Organizations

II-90.2

 

Funds of Teacher Organizations and Parent/Teacher Organizations

II-90.2

 

Funds Collected by Teachers from Pupils for Immediate Purchase of Items

II-90.2

 

Capital Assets

 

 

Overview

II-CA.1

 

Reporting on Capital Assets

II-CA.1

 

Capital Leases

II-CA.2

 

Construction In Progress

II-CA.2

 

Reporting Capital Assets Acquired Through Non-cash Grants

II-CA.2

 

Sample Format - Capital Asset Subsidiary Ledger

II-CA.2

 

Depreciation Expense

II-CA.3

 

Long-Term Liabilities

 

 

Overview

II-LT.1

 

Compensated Absences

II-LT.1

 

Other Postemployment Benefits (OPEB)

II-LT.2

 

Early Retirement Incentive Program

II-LT.2

 

Termination Benefits

II-LT.3

 

Arbitrage Requirements

II-LT.3

 

 

 

SINGLE AUDIT:

 

Federal and State Audit Requirements

II-SA.1

 

Risk Based Approach

II-SA.2

 

Schedule of Expenditures of Federal Awards and State Financial Assistance

II-SA.4

 

Preparing the Schedule of Expenditures of Federal Awards and State

 

 

Financial Assistance

II-SA.5

 

Federal (CFDA) Numbers

II-SA.10

 

State Grant Account Numbers

II-SA.12

 

Sample Schedule A (Federal Award)

II-SA.14

 

Sample Schedule B (State Financial Assistance)

II-SA.15

 

Sample Schedules of Findings and Questioned Costs

II-SA.16

 

Sample Summary Schedule of Prior Audit Findings

II-SA.21

 

Federal OMB Circular No A-133 - Refer to Circular on web site

 

 

http://www.omb.gov

 

 

State Circular Letter No. 04-04-OMB - Refer to Circular at the NJOMB web site http://www.state.nj.us/treasury/omb/

 

 

 

 

Section III: Reporting 

Chapters 1 - 3

 

Chapter 1 - Audit Criterion and Submission

III-1.1

 

Chapter 2 - Sample Opinion Reports

 

 

Directives for Auditor's Reports

III-2.1

 

Component Units

III-2.1

 

Independent Auditor's Report

III-2.3

 

Report on Internal Control over Financial Reporting and on Compliance and on Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

III-2.5

 

Report on Compliance with Requirements Applicable to Each Major Program

 

 

and on Internal Control over Compliance in Accordance with OMB

 

 

Circular A-133 and New Jersey OMB Circular 04-04

III-2.7

 

Chapter 3 - Note Disclosures and Statistical Section

 

 

Sample Notes for Schedules of Expenditures of Awards and Financial Assistance

III-3.2

 

Financial Statement Disclosures - Overview and Sample Notes

III-3.4

 

GASB 34 Model Illustration of Reconciliation - Notes to Required Supplementary Information

III-3.6

 

Statistical Section

III-3.11

 

Outline of NJ Statistical Section (GASB 44)

III-3.12

Chapters 4 & 5

 

Chapter 4 - Auditor's Management Report (AMR)

III-4.1

 

Schedule of Audited Enrollments (ASSA)

III-4.22

 

Chapter 5 - Audit Summary Worksheet Diskette

III-5.1

Chapters 6 & 7

 

Chapter 6 - Audit Checklist & Questionnaire

III-6.1

 

Chapter 7 - Synopsis and Corrective Action Plan

III-7.1

Chapter 8 - Quality Assessment Review Checklist

III-8.1