Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2022 Condition and Criteria: During the current year, adjusting journal entries, along with footnote disclosures were proposed by the auditors and accepted by the District to properly reflect the financial statements in accordance with generally accepted accounting principles. Some of the adjustments and footnotes were related to recording taxes receivable and applicable deferred inflows of resources and converting to the full accrual method for GASB 34 purposes. In addition, a draft of the financial statements was prepared by the auditors. Cause and Effect: AU-C Section 265 entitled Communicated Internal Control Related Matters Identified in an Audit, issued by the American Institute of Certified Public Accountants (AICPA) considers the need for significant adjusting journal entries and assistance when preparing the financial statements to be indicative of an internal control deficiency. Without this assistance, the potential risk exists of the District?s financial statements not conforming with Generally Accepted Accounting Principles (GAAP). Auditor?s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District?s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.
Reconciliation of Cash Year ended June 30, 2022 Conditions and criteria: At the commencement of the audit a difference existed between the general fund checking bank statement reconciliation and general ledger cash balance in the amount of approximately $13.3 million, while the payroll checking account did not reconcile by $14.2 million. The majority of the differences were interrelated and consisted of transfers from the general fund checking to the payroll checking account that were not reflected in the general ledger. Other differences were related to a transfer to the PLGIT account in the amount of approximately $.6 million that was not reflected in the general ledger and amounts related to accounts payable. Adjustments to correct these differences were made during the audit resulting in an unreconciled difference of approximately $70,000. Cause and Effect: Although bank reconciliations were being prepared on a monthly basis, such reconciliations of the general fund were not agreed to the District?s general fund cash balances within the general ledger software. The effect of not comparing bank reconciliations against the District?s general ledger balance is that reporting errors in posting cash receipts and cash disbursements can occur and not be detected or resolved in a timely manner. Auditors? Recommendation: We recommend that the District prepare general fund bank reconciliations soon after the end of each month. As part of the reconciliation process the District?s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. School District?s response: The Business Manager has established a reconciliation schedule and began changing the process of the reconciliation of cash. This has been a work in process with continued staff turnover and very limited business office staff. This new timeline requires reconciliations to be completed by the end of the following month, and we have additional staff members reviewing them within the limitations of the Financial Software and its double entry process.