T F Presentation to: A Prince William County Public R Schools - PowerPoint PPT Presentation

T F Presentation to: A Prince William County Public R Schools D February 20, 2019

T Table of Contents F A Engagement Services Service Deliverables R Engagement Results D Required Communications Future Accounting and Reporting Changes 2

T Engagement Services F A Financial Statement Audits: Compliance: Examinations: •Prince William County Public Schools*, • Governmental Auditing Standards •Virginia Retirement System census data R testing ( Performed under separate •County and School’s Major Federal engagement letter ) Programs required by Title 2 U.S. Code of Federal Regulations Part 200 •Auditor of Public Accounts (APA) Specifications for Audits of Cities, Counties and Towns ( Specifications ) D * We do not audit the Student Activity Funds, a School Agency Fund, nor the Prince William County Public Schools Foundation, a discretely presented 3 component unit of the Schools.

T Service Deliverables F  Financial Statement Opinions: A  As of and for the fiscal year ending June 30, 2018: R In Relation to Audit Opinion Unaudited Other Auditors Opinion • Basic Financial • Supplementary • Introductory • Prince William Statements information Section County Public School Activity D • Notes to the • Required Funds Basic Financial Supplementary Statements Information • The Education Foundation for • Statistical Prince William Section County Public Schools 4

T Inclusion in the County CAFR F A Prince William County Public Schools R D Prince William County Public Schools Student Activity Funds Foundation (Discretely (Agency Fund)* Presented Component Unit)* 5 * Audited by other auditors

T Engagement Results F  Financial Statement Audit Opinions: Issued December 20, 2018 A  Our opinion on the 2018 financial statements is unmodified or a “clean” opinion  Internal Controls and Compliance Reports: Issued December 20, 2018  Government Auditing Standards R • Significant Deficiency in Internal Controls over Inventory  Uniform Grant Guidance • There were no reported material weaknesses in internal control over compliance D • There were no reportable instances of noncompliance Auditor of Public Accounts  • Conflict of Interest  Other Services: Issued September 18, 2018  Examination • Our opinion was unmodified on the census data provided to VRS by the Schools 6

T Required Communications F Accounting Policies A • Adoption of new accounting policies – • GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. R Management Judgement and Accounting Estimates • Allowance for Doubtful Accounts and Accounts Receivable D • Pension, Other Postemployment Benefits, Health Credit liabilities • Risk management claims liabilities • Incurred But Not Reported Liabilities • Capital Asset useful lives • Pollution remediation liabilities • Compensated absence liabilities 7

T Required Communications (cont.) F A Audit Adjustments and Uncorrected Misstatements • There were none noted during fieldwork R Disagreements with Management • There were none noted during fieldwork D Difficulties Encountered in Performing the Audit • We encountered no difficulties in performing the audit 8

T Required Communications (cont.) F A Consultation with Other Accountants • We are not aware of any such consultations R Client Communications • We received representation from School Management on December 20, 2018 D Independence • We are not aware of any relationship that we believe, based on current authoritative guidance, would impair our independence 9

T Future Accounting and Reporting Changes F GASB statements effective for FY 2020: A  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 R GASB statements effective for FY 2021:  GASB Statement No. 87 – Leases  Establishes a single model for lease accounting based on the foundational D 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

T Your Guide Forward F A R Greg Miller Senior Manager 804.673.5742 gmiller@cbh.com John Gilberto D Partner 813.470.4568 jgilberto@cbh.com 11