Recently, it was discovered that the State of New Mexico’s bank account was not fully reconciled, to the tune of $100 million, give or take. You’re probably asking yourself the same thing I am, “How does this even happen?” The State was asked the same question and fingers were pointed, and blame was passed all …
The GASB issued an exposure draft, Tax Abatement Disclosures, for public comment in October 2014. The period for public comment ended just a couple of weeks ago and now the Board will evaluate comments and may issue a new statement this August that will provide guidance on how governments should disclose tax abatements. The proposed …
GASB Statement number 71 has been issued for the simple purpose of amending one paragraph in GASB Statement 68. Because of this, it is required to be applied in the same year of implementing GASB 68. Also, it is only going to be used in the first year of implementing 68, the transition year, and …
We’ve been waiting a while for this, as single audit reform has been an ongoing conversation for a few years. There will be a number of changes to single audit requirements as well as some changes to the single audit process. For now, since these changes won’t take effect until 2015 calendar year-end audits, the …
Some of you may have heard that the Government Accountability Office (GAO) has recently updated the Government Auditing Standards for the Yellow Book this year. Some of you may be wondering how is this update going to affect me, or what is my auditor going to be asking for that I should be prepared for? …
Last fall 2011 I wrote a blog regarding auditor term limits that were slowly creeping their way into governmental audits in the State of Arizona. The legislature had passed Laws 2011, Chapter 344, sec. 5 and sec.16 of Arizona Revised Statutes §15-183 and §15-914, respectively, in July 2011 requiring Charter Schools to rotate their audit …
In these economically stressful times, pressure and incentive to perpetrate fraud are more plentiful. Employers must address fraud risk more rigorously than ever before. Annual communication with the entity’s auditor can help pinpoint areas of higher risk. Once identified, these areas can become the focus of management brainstorming sessions to develop processes to heighten awareness …
That is a question that the management of many governmental entities asks. Governmental entities also have another layer of complexity in determining appropriate levels of cash reserves due to the fact that there are many different funds within a governmental entity. For example, a governmental entity may have General, Special Revenue, Debt Service, Capital Improvement …
The purpose of financial reports is to report an entities financial performance for a period and the financial status at a given point in time. In order for the information to be useful, it needs to reach the user in a timely manner. For many, the year process is a task that requires a lot of …
The Office of the Auditor General for the State of Arizona recently issued a fraud alert regarding common billing schemes. The Alert cites a 2010 study done by the Association of Certified Fraud Examiners that indicated most misappropriation schemes involve the theft of cash receipts or involve fraudulent disbursements of cash. The study also indicated …