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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Pension obligation bonds post GASB 68

Recently, a number of our clients have reached out to us regarding the accounting treatment for pension obligation bonds. Specifically, people want to know about any accounting treatment they should consider when factoring in GASB 68. Even though GFOA advises against governments issuing pension obligation bonds, it is clear that the interest rates on taxable …

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School district procurement due diligence and written determinations

Within the procurement section of the USFR, multiple questions are centered around if a school district has maintained documentation showing due diligence and written determinations were completed regarding cooperative agreements used by the district. The Arizona Auditor General defines these as: Due Diligence: The process of obtaining and reviewing documentation to verify that the procuring …

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GASB Implementation Guidance Update for 2021

Recently, The Governmental Accounting Standards Board released its Implementation Guidance Update for 2021. Within this update, an amendment was made for the following question: “Should a government’s capitalization policy be applied only to individual assets, or can it be applied to a group of assets acquired together? Consider a government that has established a capitalization …

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Legal Compliance Questionnaire changes

Every year, the Charter Board publishes changes and updates to the legal compliance questionnaire. In the hopes to help our Charter schools minimize comments and “No” responses, here is a summary of changes to the current LCQ for FY21. Don’t miss: The end of the Comprehensive Annual Financial Report acronym Question #11 – Tuition question …

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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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Are you an Ethical Person? Take a Quiz to find out

When it comes to accounting, people often believe it to be very rigid and structured. But as we all know, “it depends” is a very common answer when it comes to the treatment of various accounting issues. At what point does something become an ethical issue? Well…it depends. It’s also not as clear as some …

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Operational Reviews of Arizona Courts

Navigating Arizona’s court financial system can be confusing, even more so with a recent switch between AZTEC and AJACS systems. The state completed the transition by June 30, 2020 and now everyone can begin learning the user-friendly system! Don’t miss: Culture of busy-ness Each court is required to complete the following, to adhere to compliance …

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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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