Presentation to the School Board Stafford County Public Schools December 10, 2019
Audit Services Compliance Audits: Financial Statement Audit • Governmental Auditing Standards • School’s Major Federal Programs required (in accordance with GAAP) : by Title 2 U.S. Code of Federal Regulations • Stafford County Public Schools Part 200 • Stafford County School Activity Funds • Auditor of Public Accounts Specifications for Audits of Cities, Counties and Towns 2
Audit Services Financial Statement Audit: Test the significant balances and transactions in the financial statements Gain an understanding of internal controls to assist in the design of the audit Compliance Audits: Test compliance with laws, regulations and grant agreements Gain an understanding of internal controls and test key controls 3
Engagement Results
Engagement Results Financial Statement Audit Opinion: Unmodified (clean) opinion expected to be issued December 2019 Emphasis of matter paragraph - change in accounting principle for prepaid expenditures Compliance Audit Opinions: Government Auditing Standards • Unmodified (clean) opinion expected to be issued December 2019 • No matters of noncompliance • Material weakness in internal control – Food and Nutrition Services Fund - timely recording of donated USDA Food Inventory ($356k) 5
Engagement Results Compliance Audit Opinions (continued) Uniform Grant Guidance • Unmodified (clean) opinion expected to be issued December 2019 • No matters of noncompliance • No material weakness in internal controls • Significant deficiency in internal control in the Head Start program related to review of employee timesheets (1 instance of 34 tested) Specifications for Audits of Cities, Counties and Towns • No matters of noncompliance 6
Required Communications Accounting Policies Change in accounting policies – prepaid expenditures Schools was not impacted by any new accounting standards during 2019 Management Judgement and Accounting Estimates Actuarially computed pension, OPEB and self-insurance liabilities Useful lives of capital assets (Depreciation expense) Audit Adjustments and Uncorrected Misstatements One adjustment to record donated USDA Food Inventory ($356k) Disagreements with Management There were no disagreements with Management noted during fieldwork 7
Required Communications Difficulties Encountered in Performing Audit We encountered no difficulties in performing the audit Consultation with Other Accountants We are not aware of any Material Client Communications Management representation letter will be provided by management upon issuance Independence We are not aware of any relationship that we believe, based on current authoritative guidance, would impair our independence Other Matters We applied limited procedures to the Management’s Discussion and Analysis (“MD&A”) and other Required Supplementary Information – no opinion We applied certain additional procedures to Other Supplementary Information – “in relation to” opinion 8
Future Accounting and Reporting Changes 9
New Accounting and Reporting Changes GASB statements effective for FY 2020: GASB Statement No. 84 – Fiduciary Activities Establishes criteria for identifying fiduciary activities of all state and local governments focusing on (1) whether a government is controlling the assets and (2) the beneficiaries with whom a fiduciary relationship exists GASB statements effective for FY 2021: GASB Statement No. 87 – Leases Establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset Requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract 10
Your Guide Forward Meghan DePace Manager 703.584.0273 mdepace@cbh.com Krista Edoff Partner 703.506.4440 kedoff@cbh.com
Recommend
More recommend
