T F Presentation to: A Prince William County Public R Schools - - PowerPoint PPT Presentation

Presentation to: Prince William County Public Schools

February 20, 2019

D R A F T

2

Table of Contents

Engagement Services Service Deliverables Engagement Results Required Communications Future Accounting and Reporting Changes

D R A F T

3

Engagement Services

Financial Statement Audits:

• Prince William County Public Schools*,

Compliance:

• Governmental Auditing Standards
• County and School’s Major Federal

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

• Auditor of Public Accounts (APA)

Specifications for Audits of Cities, Counties and Towns (Specifications)

Examinations:

• Virginia Retirement System census data

testing (Performed under separate engagement letter)

* We do not audit the Student Activity Funds, a School Agency Fund, nor the Prince William County Public Schools Foundation, a discretely presented component unit of the Schools.

D R A F T

Service Deliverables

 Financial Statement Opinions:

• As of and for the fiscal year ending June 30, 2018:

Audit Opinion

• Basic Financial

Statements

• Notes to the

Basic Financial Statements In Relation to Opinion

• Supplementary

information Unaudited

• Introductory

Section

• Required

Supplementary Information

• Statistical

Section Other Auditors

• Prince William

County Public School Activity Funds

• The Education

Foundation for Prince William County Public Schools

4

D R A F T

Inclusion in the County CAFR

Prince William County Public Schools Student Activity Funds (Agency Fund)* Prince William County Public Schools Foundation (Discretely Presented Component Unit)*

* Audited by other auditors

5

D R A F T

6

Engagement Results

 Financial Statement Audit Opinions: Issued December 20, 2018

• Our opinion on the 2018 financial statements is unmodified or a “clean” opinion

 Internal Controls and Compliance Reports: Issued December 20, 2018

• Government Auditing Standards
• Significant Deficiency in Internal Controls over Inventory
• Uniform Grant Guidance
• There were no reported material weaknesses in internal control over compliance
• There were no reportable instances of noncompliance
• Auditor of Public Accounts
• Conflict of Interest

 Other Services: Issued September 18, 2018

• Examination
• Our opinion was unmodified on the census data provided to VRS by the Schools

D R A F T

7

Required Communications

• Adoption of new accounting policies –
• GASB Statement No. 75 Accounting and Financial Reporting for

Postemployment Benefit Plans Other Than Pension Plans. Accounting Policies

• Allowance for Doubtful Accounts and Accounts Receivable
• Pension, Other Postemployment Benefits, Health Credit liabilities
• Risk management claims liabilities
• Incurred But Not Reported Liabilities
• Capital Asset useful lives
• Pollution remediation liabilities
• Compensated absence liabilities

Management Judgement and Accounting Estimates

D R A F T

8

Required Communications (cont.)

• There were none noted during fieldwork

Audit Adjustments and Uncorrected Misstatements

• There were none noted during fieldwork

Disagreements with Management

• We encountered no difficulties in performing the audit

Difficulties Encountered in Performing the Audit

D R A F T

9

Required Communications (cont.)

• We are not aware of any such consultations

Consultation with Other Accountants

• We received representation from School Management on December 20, 2018

Client Communications

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

authoritative guidance, would impair our independence Independence

D R A F T

10

Future 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

D R A F T

Your Guide Forward

John Gilberto Partner 813.470.4568 jgilberto@cbh.com Greg Miller Senior Manager 804.673.5742 gmiller@cbh.com

11

D R A F T