The Latest Rules and Regulations That Impact Your Government Entity

Why Per Diem Travel Might be a Good Idea

Work-related travel is commonplace and often necessary these days, but that doesn’t mean there aren’t a multitude of implications related to this topic.  A recent article in the November/December 2011 issue of FRAUD Magazine touched upon a variety of fraud schemes related to employee travel.  The article, titled “Traveling in High Style on the Organization’s …

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Determining if July Debt Payments should be Accrued in Governmental Funds

Is your government about to obtain new debt in their governmental funds? If there is a payment in July following fiscal year end; should the payment be recorded in the current year or next fiscal year? Under cash basis, there should not be an expenditure recorded until amounts are due and payable; however there is …

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How to Make Your Auditor Smile (Or Getting Organized for Your Audit)

Most financial staff members do not look forward to their annual financial audit.  I have met an exception to this, however, and here was her method for going into the audit feeling comfortable and confident.  Let’s refer to this individual as Sally. Sally began her audit preparation by using her normal monthly closing procedures which …

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Adoption of A Capitalization Policy

One of the ways a Henry & Horne auditor can add value to a client’s audit, is to provide recommendations for client staff economies in bookkeeping.  Over the past year, one of the recommendations that I have been able to make is the following: In small governments (e.g. Special Districts), an often overlooked item is the …

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The differences between GAAP, cash basis and modified cash basis of accounting

Generally Accepted Accounting Principles in the U.S. (GAAP) are just that – generally accepted. However, it’s not the only choice of accounting basis available to nonprofit and government organizations, and many organizations select another basis of accounting. There could be many reasons for presenting a different basis, one being that it may be more in …

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