2020-21 Combined School District, Charter School and Renaissance School Audit Program

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Introduction	PAGE
Significant Changes	viii
Other Changes/Updates for 2020-2021	viii
Overview	xviii
Outline for Comprehensive Annual Financial Report (CAFR)	xxiii
Section I: General Compliance
Chapter 1 – Appointment, Scope and Declaration	I-1.1
Chapter 2 – Meetings and Minutes	I-2.1
Chapter 3 – ASSA, Charter School/Renaissance School Project Aid, 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
SOC 1 Report/SSAE No. 16	II-10.2
Third Party Disbursements	II-10.3
Investments	II-10.4
Revenues and Receipts	II-10.6
Insurance Recoveries	II-10.7
Community Disaster Loans (CDL)	II-10.8
Other Reimbursements	II-10.8
Extraordinary Aid	II-10.9
District Taxes	II-10.9
Tuition (N.J.A.C. 6A:23A-17)	II-10.10
Reporting On-Behalf Payments	II-10.11
GASBS No. 68 – Pension Reporting	II-10.12
GASBS No. 75 – Post-Employment Benefits Other than Pensions	II-10.23
Compensation Reporting	II-10.27
Pensionable Wages	II-10.28
Refunds	II-10.29
Telecommunications Act of 1996 (E-rate)	II-10.29
Cancellations	II-10.29
Travel Expenditures	II-10.29
Health Insurance Policies	II-10.30
Health Insurance Withholding	II-10.32
Payroll Agency and Section 125 Flexible Spending Accounts	II-10.33
Unemployment Trust Fund	II-10.33
Sale and Lease-back Contracts	II-10.34
Required Maintenance	II-10.35
Restricted Appropriations/Balances	II-10.35
Capital Reserve Account – General Fund	II-10.36
Excess Surplus	II-10.40
Fund Balance Classifications	II-10.43
Deficit Due to Delay of One or More June State Aid Payments	II-10.51
Fund 20 (Special Revenue Fund):
TPAF Reimbursement	II-20.1
TPAF Reimbursement for Districts Required to Use SBB	II-20.1
Student Activity Fund	II-20.3
Scholarship Fund	II-20.3
Organizations Under the Auspices of the School	II-20.3
Restricted State Aid	II-20.4
June State Aid Payments	II-20.4
Preschool Education Aid	II-20.5
Preparing the Preschool Restricted Aid Schedule	II-20.7
Capital Projects Fund (30), Debt Service Fund (40), and Permanent Fund (50)
Fund 30 (Capital Projects Fund):
Capital Projects	II-30.1
Bond and Note Authorizations	II-30.1
Bond Anticipation Notes	II-30.1
General Borrowing Authority	II-30.2
Bond Sales and Capital Projects Fund Activities	II-30.4
Capital Project Approval under EFCFA	II-30.5
Unexpended Bond Proceeds	II-30.5
Unexpended Project Funds – Other Funding Sources	II-30.6
School Development Authority (SDA) Grants under EFCFA	II-30.6
Overexpenditures	II-30.7
Rebatable Arbitrage	II-30.8
Secondary Market Disclosures	II-30.8
Lease Purchase Agreements	II-30.8
Financial Reporting	II-30.9
Capital Projects Fund Sample Schedules	II-30.10
Fund 40 (Debt Service Fund): [Not Applicable to Charter Schools or Renaissance School Projects]
District Taxes	II-40.1
SDA Assessment	II-40.1
Debt Service Aid	II-40.1
Reporting	II-40.1
Transfers	II-40.2
Rebatable Arbitrage	II-40.2
Fund 50 (Permanent Fund)
GASB 34 Model for Permanent Funds	II-50.1
Proprietary Funds
Fund 60 (Proprietary Fund):
Enterprise Funds	II-60.1
Food Service – Enterprise Fund	II-60.1
SSAE No. 16 Reports	II-60.5
Insurance Recoveries and Impairment Losses	II-60.6
Child Nutrition Program Requirements	II-60.9
Child Nutrition Program Requirements- CEP	II-60.19
National School Lunch Rate Schedule	II-60.27
Internal Service Fund (70), Trust & Agency Funds (80 & 90), Capital Assets,
and Long Term Liabilities
Fund 70 (Internal Service Funds)	II-70.1
Self Insurance (Risk Financing)	II-70.2
Fiduciary Funds:
Fund 80 (Trust Fund):
GASB 84, Fiduciary Activities	II-80.1
Trust Fund Reporting	II-80.2
Section 457 Deferred Compensation Plan	II-80.2
Fund 90 (Custodial Fund):
Fund Raising in Schools by Outside Organizations	II-90.1
Funds of Teacher Organizations and Parent/Teacher Organizations	II-90.1
Funds Collected by Teachers from Pupils for Immediate Purchase of Items	II-90.2
Capital Assets
Overview	II-CA.1
Reporting Capital Assets	II-CA.1
Capital Leases	II-CA.3
Construction in Progress	II-CA.3
Reporting Capital Assets Acquired Through Non-cash Grants	II-CA.3
Sample Format – Capital Asset Subsidiary Ledger	II-CA.3
Depreciation Expense	II-CA.4
Long-Term Liabilities
Overview	II-LT.1
Compensated Absences	II-LT.2
Pension and 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.2
AICPA Single Audit Guidance	II-SA.4
Risk Based Approach	II-SA.4
Schedules of Expenditures of Federal Awards and State Financial Assistance	II-SA.7
Federal Awards: Carryover/Deferred Revenue/Due Back to Granter	II-SA.12
Title I-Schoolwide and Blended Resource Requirements	II-SA.15
Fund 15 – GAAP Basis Expenditure Testing	II-SA.16
Fund 15 – Blended Resource Testing	II-SA.17
Fund 15 – Budgetary Basis Encumbrance Testing	II-SA.17
State Awards: Carryover/Deferred Revenue/Due Back to Granter	II-SA.18
Preparing the Schedules of Expenditures of Federal Awards and State Financial Assistance	II-SA.19
Federal (CFDA) Numbers	II-SA.22
State Grant Account Numbers	II-SA.25
Sample Schedule A (Federal Award)	II-SA.27
Sample Schedule B (State Financial Assistance)	II-SA.28
Links to Grant-related DOE Broadcasts	II-SA.29
Sample Schedules of Findings and Questioned Costs	II-SA.30
Sample Summary Schedule of Prior Audit Findings	II-SA.36

Uniform Grant Guidance http://www.nj.gov/education/grants/ugg/
State Circular Letter No. 15-08-OMB (Refer to Circular at the NJOMB website)

Section III: Reporting
Chapters 1-3
Chapter 1 - Audit Criterion and Submission	III-1.1
Chapter 2 - Sample Opinion Reports	III-2.1
Directives for Auditor's Reports	III-2.1
Component Units	III-2.1
Independent Auditor's Report	III-2.1
Chapter 3 – Note Disclosures and Statistical Section	III-3.1
Sample Notes for Schedules of Expenditures of Awards and Financial Assistance	III-3.2
Financial Statement Disclosures – Overview and Sample Notes	III-3.4
OPEB Liability	III-3.7
GASBS 34 Model Illustration of Reconciliation - Notes to Required Supplementary Information	III-3.15
Statistical Section	III-3.16
Outline of NJ Statistical Section (GASB 44)	III-3.17
Chapters 4-5
Chapter 4 – Auditor's Management Report (AMR)	III-4.1
Schedule of Audited Enrollments (ASSA – districts)	III-4.32
Schedule of Audited Enrollments (charter schools)	III-4.32
Schedule of Audited Enrollments (renaissance schools)	III-4.32
Excess Surplus Calculation	III-4.33
Chapter 5 – Audit Summary	III-5.1
Chapters 6-7
Chapter 6 –Admin. Questionnaire, Audit Prep. Checklist & Independent Auditor's Questionnaire	III-6.1
Chapter 7 – Synopsis; Corrective Action Plan (CAP); Certification of Implementation of Prior Year's CAP	III-7.1

New Jersey Department of Education

School Finance

2020-21 Combined School District, Charter School and Renaissance School Audit Program