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Financial Statements and single audit act reports

Financial Statements and single audit act reports. January 27, 2010. February 10, 2010 Governing Board Meeting. We will go over Comprehensive Annual Financial Report (CAFR) Single Audit Reports. Process (Excerpts from Transmittal Letter, Introductory Section CAFR).

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Financial Statements and single audit act reports

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  1. Financial Statements and single audit act reports January 27, 2010

  2. February 10, 2010 Governing Board Meeting We will go over • Comprehensive Annual Financial Report (CAFR) • Single Audit Reports

  3. Process (Excerpts from Transmittal Letter, Introductory Section CAFR) • State law requires school districts that receive over $500,000 of federal monies publish a complete set of financial statements • The statements must be audited by an independent certified public accounting firm

  4. Process (continued)(Excerpts from Transmittal Letter, Introductory Section CAFR) • Management assumes full responsibility for completion and reliability of all information in the reports • We have established a comprehensive internal control framework that is designed to both protect the District’s assets from loss, theft, or misuse, and to compile sufficient reliable information for financial statements

  5. Process (continued)(Excerpts from Transmittal Letter, Introductory Section CAFR) • The independent audit involves: • Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements • Assessing the accounting principles used and significant estimates made by management • Evaluating the overall financial statement presentation • Auditor’s opinion on these financial statements

  6. Process (continued)(Excerpts from Transmittal Letter, Introductory Section CAFR) • Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview, and analysis of the basic financial statement. This is the Management Discussion and Analysis (MD&A)

  7. Comprehensive Annual Financial Report(CAFR) Consists of three sections: • Introductory Section • Financial Section • Statistical Section

  8. Introductory Section Letter of Transmittal • Letter from Management to Governing Board • Explains the process • Profile of the District • Factors affecting financial condition • Awards and Acknowledgements

  9. Introductory Section (continued) • List of Principal Officials • Organizational Chart • ASBO (Association of School Business Officials) Certificate • GFOA (Government Finance Officers Association) Certificate of Achievement

  10. Financial Section • Independent Auditor’s Report • Management’s Discussion and Analysis • Basic Financial Statements • 11 statements with set of notes to the Basic Financial Statements • Combining and Individual Fund Statements and Schedules • 12-14 statements/schedules

  11. Statistical Section • Financial Trends • Revenue Capacity • Debt Capacity • Demographics • Operating Information

  12. Single Audit Act Reports • Report on Internal Control Over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

  13. Single Audit Act Reports (Continued) • Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133

  14. Single Audit Act Reports (Continued) • Summary of Auditor’s Results • Financial Statement Findings • Federal Award Findings and Questioned Costs • Summary Schedule of Prior Audit Findings • Supplementary Schedule of Expenditures of Federal Awards

  15. Schedule of Findings and Questioned Costs

  16. Perspective for Analyzing Local Government Financial Statements 1. Near Term Financing 2. Financial Position 3. Economic Condition

  17. 1. Near Term Financing (Will the Government be able to pay its bills (both expected and unexpected) on time?) • Unreserved fund balance over time • Excess of revenues over expenditures over time

  18. Where to FindNear Term Financing • Management’s Discussion and Analysis (Financial Section) • Fund Balances of Governmental Funds Last Six Fiscal Years (Statistics Section) • Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Statistics Section)

  19. 2. Assessing Financial Position (Is the Government’s financial health improving or deteriorating?) • Change on net assets over time

  20. Where to FindAssessing Financial Position • Management’s Discussion and Analysis (Financial Section) • Net Assets by Component Last Six Fiscal Years (Statistics Section) • Changes in Net Assets Last Six Fiscal Years (Statistics Section)

  21. 3. Assessing Economic Condition (Is it likely that today’s financial position will improve or deteriorate?) • Local economy conditions • Population, unemployment • Debt ratios

  22. Where to FindAssessing Economic Condition • Transmittal Letter, Local Economy Section (Introductory Section) • Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Statistics Section) • Demographic and Economy Statistics Last Ten Fiscal Years (Statistics Section)

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