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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GASB 61 – The Financial Reporting Entity

Effective for periods beginning after June 15, 2012, GASB 61 added requirements that either a financial benefit or burden relationship be present between component units and a primary government to cause inclusion of the component unit in the reporting entity’s financial statements. If a government’s management determines that inclusions of certain component units which fail …

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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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Updated Annual Financial Report (AFR) for Arizona School Districts

With the Annual Financial Report due next week, make sure to have the most up to date form by visiting http://www.auditorgen.state.az.us/forms_schooldistrict.htm.  The Arizona Auditor General recently released Memo 256 with a few updates to the form. In the memo, it explains the major changes that have occurred from last year’s form including the removal of …

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Who is the GFOA, and What Do They Do?

The Government Finance Officers Association (GFOA) as identified in their mission statement is an organization that was established to assist in the professional management of governments by developing and identifying financial policies and best practices through education, training, facilitation of member leadership and networking. The objectives of the GFOA are to offer expert knowledge, education, …

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Fraud Alert – Skimming

The Office of the Auditor General recently issued a fraud alert related to skimming, which is a scheme where cash is stolen before it is recorded.  There are two types of skimming; revenue skimming and accounts receivable skimming. The most common and the most difficult to detect is revenue skimming. Revenue skimming involves an employee …

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Arizona School District Residency Requirements

With the new school year quickly approaching it’s that time when many districts are performing their annual registration process. In September 2011, the Arizona Department of Education (ADE) issued a memo with guidelines on how to comply with A.R.S. §15-823(J) which allows districts to only include students who reside in Arizona in their student counts. …

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How are the New Accounting Standards for State and Government Pensions Going to Affect Me?

In June 2012, Governmental Accounting Standards Board (GASB) issued 2 new standards (GASB67 and 68) dealing with financial statement reporting of State and local government pensions.  These standards change how State and local governments report the costs and obligations associated with defined benefit pension plans.  Governments will be implementing changes as early as June 30, …

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The Yellow Book Update and New Independence Standards

The Government Accountability Office (GAO) has recently updated the Government Auditing Standards this year.  Some of you may wonder, “How is this update going to affect me?”  Or, “What is my auditor going to be asking that I should be prepared for?”  Among the seven chapters and over 200 pages of information that you and …

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Compensated Absences

“Compensated absences” refers to employee absences for which employees will be paid, including vacation and sick leave.  Expenses are normally recognized during the period for which the employee provides services qualifying that employee for compensated absences.  If the employment policy specifically dictates, a liability is accrued for unused portion of such compensated absences. Liabilities are …

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