Guide for Independent Reviews has been updated

When performing an audit for a court in the state of Arizona, auditors use a “Guide for Independent Review” to perform testing over controls and cash receipts, along with cash disbursements. In the most recent update, effective January 1, 2021, new areas for testing have been added. Those areas suspense/hold monies, overpayments and bonds over …

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The end of the Comprehensive Annual Financial Report acronym

Recently the acronym for the commonly used Comprehensive Annual Financial Report (CAFR) has come under fire due to what it represents when said amongst some groups in South Africa and other parts of the world. To avoid misunderstandings, you will soon start seeing Annual Comprehensive Financial Report (ACFR) instead. You may be wondering what that …

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Don’t forget about GASB 84!

With COVID pushing implementation dates back and leases on our heels, we do not want to forget about implementing GASB 84 as of June 30, 2021. This GASB’s purpose is to help clarify the differences of Fiduciary funds and related component units and how it’s reported. Fiduciary funds’ definition has been revised and updated to …

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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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