Arizona school district audit updates

In 2018, Arizona Revised Statute (A.R.S.) §15-213 was amended by law to limit audit contracts for school districts to a maximum of three years. A school district may not hire the same auditor or auditing firm for more than three consecutive years. Prior to this change, there were no limitations on the number of consecutive …

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Coming soon: GASB’s new lease standard

The Governmental Accounting Standards Board (GASB) is set to release a new standard dealing with leasing later this month. The new lease standard is set to be effective for reporting periods beginning after December 15, 2019 and earlier application is encouraged. If you are a state or local government that is involved in leasing, then …

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Auditee requirements under Uniform Guidance related to audit findings

Auditee responsibilities under Uniform Guidance § 200.511 establishes reporting requirements related to follow-up of prior year audit findings and corrective action for all current year audit findings. Effective in November 2015, auditees are required to prepare a summary schedule of prior audit findings, and a corrective action plan for current year audit findings. The summary …

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Understanding Government and Nonprofit Auditing Risks

School districts, townships, municipalities and special districts make up roughly 90,000 local government entities throughout the United States that require an audit by a CPA firm. Additionally, more than 1.5 million tax-exempt organizations in the U.S. also require an audit at year-end. Audits of these types of organizations require planning, testing, and reporting requirements to …

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Steps to Improve Financial and Single Audit Quality

The AICPA Governmental Audit Quality Center has some resources available for auditees to assist you in having a smooth and efficient audit. The Center outlines five steps that you, as an auditee, can take to improve the quality of your audit. The first step is to ensure that your auditors are properly qualified and have …

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Best Practices for Analytics

It does not matter what industry or profession you are in, analytics can play a vital role in making a business decision. Whether it is to determine collectability in accounts receivable or project future revenues, analytics can help with the decision making process. However, what makes a good analytic, or perhaps more importantly, what do …

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Is Your School Ready for Its Audit?

Often times, School Districts and Charter Schools are busy running the operations of their organization that they forget how much preparedness is needed for their annual or biennial audits. The summer time is a great time to take a moment to look through the items your auditors often ask for each year and do a …

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Why Are My Auditors Doing A Yellow Book and Single Audit?

Recently the State of Arizona began requiring Generally Accepted Government Auditing Standards (GAGAS) audits, or Yellow Book audits, of all Title 48 Governmental Districts with just a few exceptions.  This has required smaller governmental entities, largely in more rural areas, to include these requirements in their overall financial statement audits.  But you may be asking …

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Why Audit in Tough Economic Times?

With the economy still struggling to climb out of its downward spiral, clients are struggling to cut costs every place that they can.  Some clients’ audit needs are dictated by Arizona State Statute, federal loans or grants, or some other outside stipulation.  For entities that may have a choice, why should they spend money on …

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New Auditee Resource Center on the AICPA Website

Henry & Horne is committed to achieving the highest quality audits.  As a member of the American Institute of Certified Public Accountants Governmental Audit Quality Center (GAQC), we have access to key information and comprehensive resources that we use to help ensure our compliance with appropriate professional standards and laws and regulations that affect our …

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