Agenda Item
1. Audit Findings and Required Next Steps (updated 07.13.2022)
FY21 Audit Results
Audit Opinion
Status of Prior Year Findings
Financial Statement Preparation Improvements
Agenda Current Year Findings
Other Deficiencies
Senate Bill 68
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Financial Statement
Summary of Auditors Audit
Results Opinion
FY 2018 & 2019 – Financial Statements
Type of Auditor’s Report Issued:
Governmental Activities; All Major Funds; Aggregate
Unmodified Opinion
Remaining Fund Information
Note: An unmodified opinion is a “clean” opinion where the auditor expresses that
financial statements are presented, in all material respects, in accordance with
applicable financial reporting framework (GASB).
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Status of Prior Year Findings
Material Weaknesses: A material weakness is a deficiency of
such that there is a reasonable
• Financial Reporting: Fully Cleared possibility that a material
misstatement to the financial
statements will not be prevented or
Significant Deficiencies: detected by internal controls
• Special Education Cluster – Controls over A significant deficiency is a deficiency,
procurement: Fully Cleared or a combination of deficiencies,
in internal control over financial
• Child Nutrition Cluster – Improve controls over reporting that is less severe than
equipment: Partially Resolved - Finding did not a material weakness
repeat in the current year section, but still
present on the Single Audit report
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Financial Statement Process Improvements
• New annual financial statement preparation strategy deployed for FY21 that
improves:
• Financial Prep Journal Entries: Reduces the need and volume of manual entries (44
manual entries on the Government-Wide trial balance in FY20 versus only 20 in
FY21)
• Allocation Precision: Improves precision of functional expense allocations
• Financial Controls: Embeds automated checkpoints on the face of the exhibits to
ensure the overall integrity of the financial statements
• Example: Fund Balance reported on Exh E will now flag if different from Exh C
• Note Disclosure Controls: Embeds detailed reconciliations for every note disclosure,
ensuring note disclosure detail agrees back to summary detail on the financial
statements
• Example: Recon embedded for Long-Term Debt detail will now flag if not reconcilable to
Long-Term Debt summary reported on Exh A
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Financial Statement Improvements
Financial Statement FY 2021 FY 2020
Category
Pension Expense Allocations No Errors Reported Errors Reported –
(Gov’t Activities) Percentages used didn’t
follow GDOE guidelines
Accounts Payable & Capital No Errors Reported Errors Reported –
Outlay Expenditures (Gov’t Duplication of
Activities & Capital Projects) expenditures
Expense Allocations (Gov’t No Errors Reported Errors Reported –
Activities) Percentages used to
allocate between modified
& full accrual incorrect
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Financial Statement Improvements
Financial Statement FY 2021 FY 2020
Category
State Revenue (Gov’t No Errors Reported Errors Reported –
Activities & General) Duplication of receivables
Property Tax Revenue No Errors Reported Errors Reported – FY21
(Gov’t Activities & General) revenue incorrectly
recognized in FY20
Revenue Allocations (Gov’t No Errors Reported Errors Reported –
Activities) Percentages used to
allocate incorrect
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Financial Statement Improvements
Financial Statement FY 2021 FY 2020
Category
Deposits & Cash Equivalents No Errors Reported Errors Reported – Items
Note Disclosure omitted & bank balances
understated
Risk Management Note No Errors Reported Errors Reported –
Disclosure Worker’s Compensation
insurance coverage
overstated
Tax Abatements Note No Errors Reported Errors Reported –
Disclosure Amounts overstated
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Current Year Findings
Material Weaknesses: A material weakness is a deficiency, or a
combination of deficiencies, in internal
• None noted control, such that there is a reasonable
Significant Deficiencies: possibility that a material misstatement
to the financial statements will not be
• Strengthen oversight of the Information System prevented or detected and corrected on
Conversion a timely basis.
• Strengthen Information Technology general
controls
A significant deficiency is a deficiency, or
• Strengthen controls over Employee a combination of deficiencies, in internal
Compensation control over financial reporting that is
• ESSER/CARES – Strengthen controls over less severe than a material weakness.
expenditures
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Other Deficiencies
Management Letter Comments: A Management Letter Comment is an
• Information Technology: Disaster Recovery Planning observation of a lower magnitude than
• General Ledger Maintenance Findings, presented to management
• Controls of Capital Assets but not included in the published audit
report.
• Cash Maintenance
Exit Conference Comments: An Exit Conference Comment is a
• Information Technology: Six Munis CUECs deficiency of a lower magnitude than
(Complimentary User Entity Controls) not Management Letter Comment,
implemented presented verbally, but not included in
• Separation of duties for School Bookkeepers the published audit report.
• Title IV Private School Expenditure recognition
• Reconciliation of Federal Grant Completion reports 10
SB 68 Risk Designations
• DOAA determines risk destinations, whereas GDOE communicates
them and approves Corrective Action Plans.
• High Risk Status = Budget Deficits and/or Findings reported for 3 or more
consecutive years
• Moderate Risk Status = Budget Deficits and/or Findings reported for one or
more consecutive years
• Exceptions exist for Financial Statement Preparation findings.
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SB 68 - Current Qualifying Deficiencies
• As no findings are listed as repeats, our risk status was communicated by GDOE as being
moderate.
• Should any of these reported findings not be shown as cleared on either the FY22 or FY23 Single
Audit reports (expected to be released before the end of March 2023 and 2024, respectively), our
risk status would increase to high-risk. 12
SB 68 Response Timeline
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