The importance of audit evidence

Audit evidence simply put is the documentation support and the information collected that allows your auditor to review your entity’s financial transactions, internal controls, and other items necessary to allow your auditors to certify the financial statements. This support and information requested by your auditor will vary not only by the entity under audit but …

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Help wanted but high unemployment

It is no secret that COVID-19 has affected the world as we know it. When the pandemic started, the unemployment rate skyrocketed seemingly overnight due to forced closures in order to limit the spread of the virus. The unemployment rate is now 6% but if you walk into any restaurant or retail business a “We’re …

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New USFR procurement reporting question for school districts

For procurements completed beginning July 1, 2020 and a part of fiscal year 2021 audits, school districts have a new USFR procurement reporting question as follows “school districts demonstrating that they have taken steps to ensure that employees have not violated the gifting prohibitions”. But what are the gifting prohibitions? Don’t miss: Guide for independent …

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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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Health matters, even during your audit

It’s that time of year again, audit time. For many, surviving another audit can be a rough ride. There is no denying that stress is high during audit time, pushing many near the brink of burning out. You focus so much on the audit many things are pushed to the wayside; sometimes this includes personal …

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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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COVID cyber threats to be aware of

The United States Department of Homeland Security, as well as other cybersecurity organizations, have formally released an alert warning about the new COVID cyber threats and strategies cyber hackers are using to gain access to confidential information. Don’t miss: School district procurement due diligence and written determinations Titles containing key words involved in the pandemic …

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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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