The Audit Program

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Introduction
Significant Changes	i
Other Changes/Updates for 2011-2012	ii
Overview	ix
Outline for Comprehensive Annual Financial Report (CAFR)	xiii
Section I: General Compliance
Chapter 1 – Appointment, Scope and Declaration	I-1.1
Chapter 2 – Meetings and Minutes	I-2.1
Chapter 3 – ASSA & SEMI & DRTRS	I-3.1
Chapter 4 – Budget & Transfers	I-4.1
Chapter 5 – Bids & Contracts/Purchasing	I-5.1
Chapter 6 – Chart of Accounts / Expenditure Classification	I-6.1
Chapter 7 – Reserved	I-7.1
Chapter 8 – Year End Procedures – Closing Out for GAAP	I-8.1
Section II: Specific Compliance	II-i
Governmental Funds
Fund 10 (General Fund):
Board Secretary and Treasurer Reports	II-10.1
Cash Reconciliation	II-10.2
Petty Cash Funds	II-10.2
Summer Payment Plans	II-10.2
SSAE No. 16 Reports	II-10.2
Third Party Disbursements	II-10.3
Investments	II-10.3
Revenues and Receipts	II-10.5
Extraordinary Aid	II-10.5
District Taxes	II-10.6
Tuition (N.J.A.C. 6A:23A-17)	II-10.6
Reporting On-Behalf Payments	II-10.8
Compensation Reporting	II-10.8
Pensionable Wages	II-10.9
Refunds	II-10.10
Telecommunications Act of 1996 (E-rate)	II-10.10
Cancellations	II-10.10
Travel Expenditures	II-10.10
Health Insurance Policies	II-10.10
Sale and Lease-back Contracts	II-10.12
Required Maintenance	II-10.12
Restricted Appropriations/Balances	II-10.13
Capital Reserve Account – General Fund	II-10.14
Excess Surplus	II-10.17
Excess Surplus for Districts Required to Use School-Based Budgeting (SBB)	II-10.21
Excess Surplus – 6% Calculation – Vocational Districts	II-10.26
Fund Balance Classifications	II-10.27
Deficit Due to Delay of One or More June State Aid Payments	II-10.34
Fund 20 (Special Revenue Fund):
TPAF Reimbursement	II-20.1
TPAF Reimbursement for Districts Required to Use SBB	II-20.1
Restricted State Aid	II-20.4
ARRA Special Revenue Awards	II-20.4
Preschool Education Aid	II-20.4
Preparing the Preschool Restricted Aid Schedule	II-20.5
Capital Projects, Debt Service, & Permanent Funds:
Fund 30 (Capital Projects Fund):
Bond and Note Authorizations	II-30.1
Bond Anticipation Notes	II-30.1
General Borrowing Authority	II-30.1
Bond Sales and Capital Projects Fund Activities	II-30.3
Capital Project Approval under EFCFA	II-30.4
Unexpended Bond Proceeds	II-30.4
Unexpended Project Funds – Other Funding Sources	II-30.5
School Development Authority (SDA) Grants under EFCFA	II-30.5
Overexpenditures	II-30.6
Rebatable Arbitrage	II-30.6
Secondary Market Disclosures	II-30.7
Lease Purchase Agreements	II-30.7
Financial Reporting	II-30.8
Capital Projects Fund Sample Schedules	II-30.10
Fund 40 (Debt Service Fund):
District Taxes	II-40.1
Debt Service Aid	II-40.1
Reporting	II-40.1
Transfers	II-40.1
Rebatable Arbitrage	II-40.2
Fund 50 (Permanent Fund)
GASB 34 Model for Permanent Funds	.II-50.1
Proprietary & Fiduciary Funds:
Fund 60 (Proprietary Fund):
Enterprise Funds	II-60.1
Food Service – Enterprise Fund	II-60.1
SSAE No. 16 Reports	II-60.3
Sample Food Service Invoices and Allocations	II-60.4
Child Nutrition Program Requirements	II-60.9
National School Lunch Rate Schedule	II-60.15
Internal Service, Trust, and Agency Funds/Capital Assets and Long Term Debt:
Fund 70 (Internal Service Funds)	II-70.1
Self Insurance (Self Financing)	II-70.1
Fund 80 (Trust Funds):
Trust Fund Reporting	II-80.1
Unemployment Trust Fund	II-80.1
Section 457 Deferred Compensation Plan	II-80.2
Fund 90 (Agency Fund)
Payroll Funds	II-90.1
Health Insurance Withholding	II-90.1
Section 125 Flexible Spending Accounts	II-90.2
Student Activity	II-90.2
Oganizations Under the Auspices of the School	II-90.1
Fund Raising in Schools by Outside Organizations	II-90.3
Funds of Teacher Organizations and Parent/Teacher Organizations	II-90.3
Funds Collected by Teachers from Pupils for Immediate Purchase of Items	II-90.3
Capital Assets
Overview	II-CA.1
Reporting Capital Assets	II-CA.1
Capital Leases	II-CA.2
Construction in Progress	II-CA.2
Reporting Capital Assets Acquired Through Non-cash Grants	II-CA.2
Sample Format – Capital Asset Subsidiary Ledger	II-CA.2
Depreciation Expense	II-CA.3
Long-Term Liabilities
Overview	II-LT.1
Compensated Absences	II-LT.1
Other Postemployment Benefits (OPEB)	II-LT.2
Early Retirement Incentive Program	II-LT.2
Termination Benefits	II-LT.3
Arbitrage Requirements	II-LT.3
Single Audit:
Federal Audit Requirements	II-SA.1
State Audit Requirements	II-SA.3
AICPA Single Audit Guidance	II-SA.3
Risk Based Approach	II-SA.3
Schedules of Expenditures of Federal Awards and State Financial Assistance	II-SA.5
Fedral Awards: Carryover/Deferred Revenue/Due to Grantor	II-SA.5
Title I-Schoolwide and Blended Resource Requirements	II-SA.7
Fund 15 – GAAP Basis Expenditure Testing	II-SA.8
Fund 15 – Blended Resource Testing	II-SA.8
Fund 15- Budgetary Basis Encumbrance Testing	II-SA.9
State Awards: Carryover/Deferred Revenue/Due Back to Grantor	II-SA.10
Preparing the Schedules of Expenditures of Federal Awards and State Financial Assistance	II-SA.11
Federal (CFDA) Numbers	II-SA.17
State Grant Account Numbers	II-SA.20
Sample Schedule A (Federal Award)	II-SA.21
Sample Schedule B (State Financial Assistance)	II-SA.22
Sample Schedules of Findings and Questioned Costs	II-SA.25
Sample Summary Schedule of Prior Audit Findings	II-SA.28
Federal OMB Circular No. A-133 - Refer to Circular on web site: http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revised_2007.pdf
State Circular Letter No. 04-04-OMB – Refer to Circular at the NJOMB web site: http://www.state.nj.us/infobank/circular/cir0404b.htm
Section III: Reporting
Chapters 1-3
Chapter 1 --Audit Criterion and Submission	III-1.1
Chapter 2 – Sample Opinion Reports
Directives for Auditor’s Reports	III-2.1
Component Units	III-2.1
Independent Auditor’s Report	III-2.2
Chapter 3 – Note Disclosures and Statistical Section
Sample Notes for Schedules of Expenditures of Awards and Financial Assistance	III-3.2
Financial Statement Disclosures – Overview and Sample Notes	III-3.4
GASB 34 Model Illustration of Reconciliation - Notes to Required Supplementary Information	III-3.6
Statistical Section	III-3.11
Outline of NJ Statistical Section (GASB 44)	III-3.12
Chapters 4 & 5
Chapter 4 – Auditor’s Management Report (AMR)	III-4.1
Schedule of Audited Enrollments (ASSA)	III-4.22
Chapter 5 – Audit Summary Worksheet	III-5.1
Chapters 6 & 7
Chapter 6 – Audit Checklist & Questionnaire	III-6.1
Chapter 7 – Synopsis and Corrective Action Plan	III-7.1
Chapter 8 – Quality Assessment Review Checklist	III-8.1

New Jersey Department of Education

School Finance

The Audit Program