Classroom Site Funds gets new rules

In March of 2021, the Arizona House of Representatives passed new legislation for how Classroom Site Funds monies can be expended beginning in academic year 2021-22 or fiscal year 2022. Previously the statute required schools to allocate CSF monies as follows: 40% for teacher compensation increases based on performance and employment-related expenses 20% of monies …

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Explaining the Annual Expenditure Limitation Report for cities and towns

Arizona Revised Statutes (A.R.S.) §41-1279.07 states that “The auditor general shall prescribe a uniform expenditure reporting system for all political subdivisions subject to the constitutional expenditure limitations prescribed by article IX, sections 20 and 21, Constitution of Arizona.” The Annual Expenditure Limitation Report is applicable to counties, community college districts, and cities and towns, each …

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Reconciling your fixed assets

Reconciliations are an important part of determining and following money trails of a organization. In short, a reconciliation is the process of bringing together two separate sets of data and ensuring the data is accurate and agrees with one another. In accounting there are various types of reconciliations that can be performed; one being a …

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The 2020 compliance supplement addendum is finally here

The Compliance Supplement Addendum was finally released at the end of December 2020. With the addendum, there was a total of five new Catalog of Federal Domestic Assistance (CFDA) numbers issued as they relate to COVID-19 funding. These cross over Department of Agriculture, Department of Education, Treasury, Federal Communications Commission (FCC) and Department of Health …

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Accounting for compensated absences

Compensated absence is as the name implies, the employer’s offering of time off with pay to employees. As the employee prepares for how they will use their time off an employer must also account for it properly regardless how the employee uses that time. As stated from GASB Statements 16 and 34, governments must account …

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Understanding prepaids and accounts payable

Let’s be honest, accounting can sometimes be a challenge. But what makes it difficult? Not understanding the fundamentals of how accounts work, without understanding the relationships and purpose of each account, nothing will make sense! So, today, Henry+Horne is here to help you understand the difference between prepaids and accounts payable. First, let’s make it …

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Commonly missed year end balance sheet reclass entries

Year-end comes every twelve months whether we are ready or not. The year-end process can be a lot to remember when it comes to accruals and the “once a year” transactions that need to be done. Commonly missed year-end entries are reclass entries needed between assets and liabilities. They are commonly missed due to the …

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Is fraud happening in your organization?

We know the fraud triangle is made up of opportunity, pressure and rationalization. For many businesses, all three can occur. Dishonest employees learn the ins and outs of your organization and find ways to commit fraud without raising suspicion. Discussed below are the three biggest areas employee fraud can occur within your organization. Don’t miss: …

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GFOA blue book gets an update

The Government Finance Officers Association (or GFOA) is a professional association of state, provincial, and local government finance officers in the United States and Canada. They have recently published the Tenth Edition of Governmental Accounting, Auditing, and Financial Reporting (GAAFR or “Blue Book”) in July 2020. Don’t miss: Yellow book changes GFOA is an organization in …

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Yellow book changes

Generally Accepted Government Auditing Standards (GAGAS), commonly referred to as the “Yellow Book,” were revised and issued in July 2018 by the U.S. Government Accountability Office (GAO). For financial audits, attestation engagements, and reviews of financial statements, the changes in the 2018 Yellow Book are effective for the periods ending on or after June 30, …

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