Accounting Procedures Handbook

6 AUDIT system of internal control attempts to limit the above intentional misstatement/ fraud risks as well as other non-intentional/ error risks. Refer to Section 4 – Internal Control, for further background on internal controls. The Education and Fiscal Accountability and Oversight Act of 2004 established criteria for scheduling of local school system audits to be performed by the Office of Legislative Audits (OLA). These audits will include: • A comprehensive review of all Master Plans and Updates submitted by Local Education Agencies (LEAs); and • An audit of financial management practices of each LEA over a 6-year period. The emphasis of the audits is expected to be on processes (e.g. controls) and results (e.g. prudent spending of money). As with the other major audits, the Finance Department is expected to play a key/ central coordinating role for these audits. I. CONTROL OBJECTIVES To ensure: • Effective preparation and coordination for all audits of the WCBOE • Compliance with all applicable governmental, financial and industry audit standards and requirements II. PROCEDURES A. Annual Audit of the Financial Statements and Federal Awards The following procedures are the primary responsibility of the Accounting Manager as related to the Annual Audit of the Financial Statements and Federal Awards performed by the WCBOE’s external auditors/ CPAs: 1. Scheduling / Coordination Coordinate with the external audit firm and set the schedule for the audit procedures to be performed for the current year audit during the May to October time frame. Note: The Accounting Manager is centrally responsible for communicating with the auditors on a daily basis during the audit, regarding the status of the audit. 2. Preliminary Audit Testing Receive the list of checks to be tested from the external audit firm and provide to the Accounting Clerk to pull all checks and supporting details/ documentation from the vault. 3. Trial Balance and Other Supporting Documentation Generate the trial balance from the G/L Accounting system for the external auditors as part of the preparation process for the annual financial statement audit. The trial balance is one of the key central financial reports used and tested by the auditors. In addition, pull all related supporting documentation or schedules for the auditors. 4. Federal Grant Schedule for the Schedule of Expenditures of Federal Awards