Presentation to the School Board Stafford County Public Schools - - PowerPoint PPT Presentation

December 10, 2019

Presentation to the School Board Stafford County Public Schools

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Audit Services

Financial Statement Audit

(in accordance with GAAP):

• Stafford County Public Schools
• Stafford County School Activity Funds

Compliance Audits:

• Governmental Auditing Standards
• School’s Major Federal Programs required

by Title 2 U.S. Code of Federal Regulations Part 200

• Auditor of Public Accounts Specifications

for Audits of Cities, Counties and Towns

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Audit Services

 Financial Statement Audit:

• Test the significant balances and transactions in the financial statements
• Gain an understanding of internal controls to assist in the design of the audit

 Compliance Audits:

• Test compliance with laws, regulations and grant agreements
• Gain an understanding of internal controls and test key controls

Engagement Results

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Engagement Results

 Financial Statement Audit Opinion:

• Unmodified (clean) opinion expected to be issued December 2019
• Emphasis of matter paragraph - change in accounting principle for prepaid

expenditures

 Compliance Audit Opinions:

• Government Auditing Standards
• Unmodified (clean) opinion expected to be issued December 2019
• No matters of noncompliance
• Material weakness in internal control – Food and Nutrition Services Fund -

timely recording of donated USDA Food Inventory ($356k)

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Engagement Results

 Compliance Audit Opinions (continued)

• Uniform Grant Guidance
• Unmodified (clean) opinion expected to be issued December 2019
• No matters of noncompliance
• No material weakness in internal controls
• Significant deficiency in internal control in the Head Start program related to

review of employee timesheets (1 instance of 34 tested)

• Specifications for Audits of Cities, Counties and Towns
• No matters of noncompliance

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Required Communications

 Accounting Policies

• Change in accounting policies – prepaid expenditures
• Schools was not impacted by any new accounting standards during 2019

 Management Judgement and Accounting Estimates

• Actuarially computed pension, OPEB and self-insurance liabilities
• Useful lives of capital assets (Depreciation expense)

 Audit Adjustments and Uncorrected Misstatements

• One adjustment to record donated USDA Food Inventory ($356k)

 Disagreements with Management

• There were no disagreements with Management noted during fieldwork

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Required Communications

 Difficulties Encountered in Performing Audit

• We encountered no difficulties in performing the audit

 Consultation with Other Accountants

• We are not aware of any

 Material Client Communications

• Management representation letter will be provided by management upon issuance

 Independence

• We are not aware of any relationship that we believe, based on current authoritative

guidance, would impair our independence

 Other Matters

• We applied limited procedures to the Management’s Discussion and Analysis (“MD&A”) and
• ther Required Supplementary Information – no opinion
• We applied certain additional procedures to Other Supplementary Information – “in relation

to” opinion

Future Accounting and Reporting Changes

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New Accounting and Reporting Changes

GASB statements effective for FY 2020:

 GASB Statement No. 84 – Fiduciary Activities

• Establishes criteria for identifying fiduciary activities of all state and local

governments focusing on (1) whether a government is controlling the assets and (2) the beneficiaries with whom a fiduciary relationship exists

GASB statements effective for FY 2021:

 GASB Statement No. 87 – Leases

 Establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset  Requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract

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Your Guide Forward

Krista Edoff Partner 703.506.4440 kedoff@cbh.com Meghan DePace Manager 703.584.0273 mdepace@cbh.com