1. FYI June 12, 2015 Jeff Ammerman, Director of Technical Assistance, jammerman@pasbo.orgjammerman@pasbo.org

2. Listen to audio over your computer speakers. If you are not able to listen via the Internet, you can dial-in by phone using the numbers shown on your screen. If you disconnect, simply repeat instructions to reconnect to the program. If listening to audio by phone, you can adjust the volume by pressing *4. To submit a question, type in the chat window and click “Enter” to send. CPE and CEU Credits are NOT available for this forum.

3. Our Intent and Purpose – Strategic Plan Outreach and Mentorship Effort for New and Newer PASBO Members in all aspects of School Business Management – Use PASBO Experts to Help New Entrants – Continuing Series Time shift to 2 nd Thursday of the Month at 1:30 pm Taking the summer off Next one will be Thursday, September 10 at 1:30 pm 3

4. Today’s Agenda 1.What's Due – Calendar of State and Federal Reports 2.PASBO Tools You Can Use – Resources to Help You 3.Audits an Auditor Preparation 4.Your Questions Answered – An Open Forum for Your Questions About Topics Covered and Uncovered! 4

5. Before We Start The due dates on the calendar are intended as a guide not as absolute deadline dates. The calendar is a work in progress and will be modified throughout the year. This is not an “official” calendar although it has been reviewed by PDE. 5

6. Sources of Filing and Reporting Info PIMS Data Collection Calendar  http://www.portal.state.pa.us/portal/server.pt/community/pims- pennsylvania_information_management_system/8959 http://www.portal.state.pa.us/portal/server.pt/community/pims- pennsylvania_information_management_system/8959 Comptroller Forms  http://www.portal.state.pa.us/portal/server.pt/community/forms _and_procedures/13472 http://www.portal.state.pa.us/portal/server.pt/community/forms _and_procedures/13472 Food Service Calendar  http://www.portal.state.pa.us/portal/server.pt/community/natio nal_school_lunch/7487/activity_calendar/964588 http://www.portal.state.pa.us/portal/server.pt/community/natio nal_school_lunch/7487/activity_calendar/964588 6

7. 1-Jun New Hire ReportMonthlyReport of New HiresHR Dept. of Labor & Industry 1-Jun NSL Report on PEARSMonthly Reimbursement for Lunches Served each Month Food ServiceCN PEARS 7-Jun Resolution declining slot moneyAnnual Copy of resolution declining slot moneyFinancePDE 10- Jun Upload NPAS Reports and Send On-lineMonthly Report of Wages & Retirement ContributionsFinancePSERS/NPAS 10- Jun2030QuarterlyReconciliation of cash on handFinanceComptroller 10- JunAnnual BudgetAnnual Make PDE-2028 available for public inspection 20- JunAnnual BudgetAnnual Deadline to publish intent to adopt final budget noticeFinance 21- Jun QuarterlyPSERS Q1 Employer Payment PSERS

8. 30- Jun018hAnnual Health Inspection Report-- Nutrition Program Sponsors Food ServicePEARS 30- JunPDE-2028Annual General fund annual budget and Homestead Resolution AdoptionFinancePDE 30- Jun EOY CATS ReportingAnnualPrepare and submit CATS reports PDE 30- Jun Dept. of Labor & Industry UC-2Quarterly Report of Unemployment Comp. WagesFinance Dept. of Labor & Industry 30- Jun Earned Income TaxQuarterly Report of Local Wage Tax WithholdingsFinance Local EIT Collector 30- JunIRS- 941QuarterlyFICA & Federal Income TaxFinanceIRS 30- Jun PA Department of RevenueQuarterlyReport of State Tax WithholdingsFinance 30- JunPDE-339 (Act 29)Quarterly Social Security & Medicare ContributionsFinance 30- Jun PSERS - EmployerQuarterly Deposit of Employer Retirement DueFinancePSERS 30- Jun All Federal Grant reportingQuarterly Submit all grant reporting for Federal programs. FAI

9. 1-JulNew Hire ReportMonthlyReport of New HiresHR Dept. of Labor & Industry 1-Jul NSL Report on PEARSMonthly Reimbursement for Lunches Served each Month Food ServiceCN PEARS 1-JulPDE-2095AnnualIU Transportation Budget Transport ationDPT 10-Jul4059AAnnual Pupil Membership/Child Accounting Reports (career-tech) Child Accountin gPDE 10-Jul Upload NPAS Reports and Send On-lineMonthly Report of Wages & Retirement Contributions FinancePSERS/NPAS 10-Jul40591Annual Pupil Membership/Child Accounting Reports (intermediate units) Child Accountin gPDE

10. 15-JulPDE 2028AnnualGeneral fund annual budgetFinanceDSD&A 15-Jul Cert. of Ending Fund BalanceAnnual Certification of estimated ending fund balance from prior year general fund budgetFinancePDE 15-Jul Cert. of Use of Referendum ExceptionsAnnual If referendum exceptions approved, file certification of useFinancePDE 15-Jul Tax Levy ResolutionAnnual Submit copy of annual tax levy resolutionFinanceDCED

11. A “must attend” for all people new to a position in school business. School Operations Academy July 30-31, 2015 Penn State Conference Center State College, PA Tracks in Business, Facilities, Food Service and Transportation will help you to: -learn proven techniques from experienced practitioners -gain ideas to create efficiencies and reduce costs -exchange challenges and solutions with your peers -build a network of contacts across the state

12. There’s a doc for that… Delivering Best Practices and Good Ideas www.pasboerc.org at the E lectronic R esource C enter

13. Follow PASBO twitter.com/pasbo_org Like PASBO Add PASBO to your social networks

14. The Budget Blog Invitation only site related to the State Budget If you have not yet signed up, please send an email to jammerman@pasbo.orgjammerman@pasbo.org Sign-up is easy

15. What is an Audit? Provides an independent assessment of and reasonable assurance about whether an entity's reported financial condition, results, and use of resources are presented fairly.

16. Planning is the Key!!! “He who fails to plan, plans to fail”He who fails to plan, plans to fail “Planning is bringing the future into the present so that you can do something about it now”Planning is bringing the future into the present so that you can do something about it now “Expect the best, plan for the worst, and prepare to be surprised.”Expect the best, plan for the worst, and prepare to be surprised.

17. Planning Generally accepted auditing standards require auditors to use information gathered about the entity and its environment to : – Identify and assess the risks of material misstatement. – Determine the nature, timing, and extent of further audit procedures needed to respond to those risks.

18. Planning During the planning process, the auditor gains sufficient knowledge of the client to: – Identify risky audit areas. – Determine the procedures necessary to address identified risks.

19. Planning – For lower-risk areas, the auditor determines what limited procedures will be necessary. – The additional time spent applying risk assessment during the planning process may be more than offset by efficiencies gained from limiting procedures in lower-risk areas. – Because the auditor is focusing his or her efforts on higher-risk areas, the audit approach is more effective.

20. Planning Entrance Meeting- items to consider Discuss blocks of vacation or illness time. Inform staff of the impending audit. Explain the audit process and timing to staff. Designate key contact personnel. Review and sign the engagement letter.

21. Planning Suggested Procedures – Review the general ledger for any journal entries that need to be posted. – Examine the balance sheet for any uncollected receivables – Update the capital asset inventory. – Update the District's accrued sick and vacation liability. – Review prior year audit findings and ensure that corrective action was taken. – Assemble a central file of audit information. – Ensure that receipts and expenditures are posted to the correct general ledger accounts.

22. Planning Information Request List Review the information request list and determine if the items requested are available. Inform the auditor if any of the items requested are not available.

23. Fieldwork SAS No. 110 states that “the auditor should design and perform further audit procedures whose nature, timing, and extent are responsive to the assessed risks of material misstatement at the relevant assertion level.” The auditor must develop an audit plan in which the auditor documents the audit procedures to be used that, when performed, are expected to reduce audit risk to an acceptably low level.

24. Fieldwork AICPA Fieldwork Standards: – The auditor must adequately plan the work and must properly supervise any assistants. – The auditor must obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. – The auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.

25. Fieldwork By leveraging the knowledge gained through the auditing process, an auditor may also make suggestions to management on ways to improve internal controls to ensure accurate reporting and guard against fraudulent activities.

26. MD&A Management Discussion and Analysis (MD&A) Section Usually written by the Business Manager for the LEA MD&A should introduce the basic financial statements and provide an analytical overview of the government’s financial activities. Required to present MD&A before the basic financial statements

27. More on MD&A Present financial information for the current and prior fiscal years, and management’s analysis is geared toward explaining how finances changed from year to year and why they changed Intended to bring to the financial report user’s attention key issues that affected or will affect an LEA’s financial health

28. Financial Statements Review the draft of the final audit report. Review each section thoroughly Ensure each section is accurate and complete. Make revisions, if needed, to convey the appropriate wording and tone. Discuss the draft report with your senior management.

29. Financial Statements During Reporting Ensure the auditor makes all proposed revisions the report draft. If no further revisions are required, a final audit report is issued. Share the final audit report with your staff so they are informed about the results of the audit.

30. Final Communication Management Letters Address and resolve issues proactively – Ensure the facts are correct. – Discuss the issue with the auditor and provide any information that may be critical to understanding the full scope of the issue. – Obtain supporting documentation to clear or resolve a potential finding.

31. Final Communication Management Letter Keep your senior management apprised of the audit and any issues that arise. Discuss the planned corrective action plan. Prepare a written response.

32. Time for Questions! Send text questions using the “Chat” function at the left side of your screen. Type message in box and click “Enter” to send.

33. CPE and CEU Credits are not available for this forum. Thank you for your participation!