• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Managing District Finances – Technology Does Matter
 

Managing District Finances – Technology Does Matter

on

  • 221 views

 

Statistics

Views

Total Views
221
Views on SlideShare
221
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Managing District Finances – Technology Does Matter Managing District Finances – Technology Does Matter Presentation Transcript

    • CSDA Annual Conference Managing District Finances: Technology Does Matter September 23, 2008 ASSOCIATES LLP
    • Mission Statement To provide responsive, innovative services of the highest quality to our clients; and to provide a positive, rewarding environment encouraging our employees to fulfill their professional and personal goals. Sacramento Office 2515 Venture Oaks, Suite 135 Sacramento, CA 95833 Tel (916) 929-0540 Fax (916) 929-0541 www.muncpas.com Justin J. Williams, CPA – Partner Dustin Cassady – Senior Accountant Introduction: ASSOCIATES LLP
    • Overview
      • Using technology to improve your District’s financial reporting from an auditor’s point of view
      ASSOCIATES LLP
    • Presentation Topics
      • New Audit Standards
      • Computer Security
      • Financial Reporting
      • Other Ways to Increase Efficiency
      ASSOCIATES LLP
    • Audit Standards
      • New Audit Standards issued by the American Institute of Certified Public Accountants
      ASSOCIATES LLP
    • Audit Standards
      • What are some of the new audit standards?
      • SAS No. 112
      • SAS No. 104 through No. 111
      • SAS No. 114
      ASSOCIATES LLP
    • Audit Standards
      • SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit
      • SAS No. 104 through No. 111, “ The Risk Assessment Standards”
      • SAS No. 114, Auditors Communication with Those Charged with Governance
      ASSOCIATES LLP
    • Audit Standards SAS No. 112
      • SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit
      • Effective for periods ending on or after December 15, 2006.
      • Requires written communication of significant deficiencies and material weaknesses to management and those charged with governance.
      ASSOCIATES LLP
    • Audit Standards SAS No. 112
      • 3 Levels of Control Related Matters:
        • Control Deficiency
        • Significant Deficiency
        • Material Weakness
        • Which is the most severe?
      ASSOCIATES LLP
    • Audit Standards SAS No. 112
      • Other information from SAS 112:
        • The auditor cannot be part of the client’s system of internal control.
        • Internal control over financial reporting encompasses controls over the preparation of the financial statements and notes.
      ASSOCIATES LLP
    • Audit Standards SAS No. 112
      • How do we avoid significant deficiencies and material weaknesses?
        • Ensure proper controls are implemented and are operating effectively
        • Review prior year management letters and SAS 112 letters to ensure recommendations have been implemented
        • Talk to your auditor
      ASSOCIATES LLP
    • Computer Security
      • Section 2- Computer Security
        • Internal Control Objectives
        • Sample Controls
      ASSOCIATES LLP
    • Computer Security
      • Internal Control Objectives
        • IT strategic planning and risk management process
        • Reliable systems that include appropriate data backup and recovery processes
      ASSOCIATES LLP
    • Computer Security
      • Internal Control Objectives (cont.)
        • Physical security and access to programs and data are appropriately controlled
        • Program changes and systems acquisition and development are appropriately managed
      ASSOCIATES LLP
    • Computer Security- Internal Control Objectives
      • IT Strategic Planning and Risk Management Process
        • Does a Technology Plan Exist?
        • Does it Support the Entities Financial Reporting Requirements?
      ASSOCIATES LLP
    • Computer Security- Internal Control Objectives
      • Reliable Systems That Include Appropriate Data Backup and Recovery Processes
        • Backups performed and secured
          • File Servers and Application Data
        • Environmental controls exist
          • Fire/Smoke Detection
          • Temperature/Humidity Controls
          • Backup Power Supply
      ASSOCIATES LLP
    • Computer Security- Internal Control Objectives
      • Physical security and access to programs and data are appropriately controlled
        • Timely action relating to user accounts
          • Requesting, establishing, issuing, suspending, modifying, and closing
        • Appropriate IT segregation of duties
          • IT personnel do not have transaction and accounting duties
      ASSOCIATES LLP
    • Computer Security- Internal Control Objectives
      • Physical security and access to programs and data are appropriately controlled (cont.)
        • Database access is appropriately restricted
        • Procedures to maintain effectiveness of authentication and access
          • Password length, password history, password expiration, and lockout for failed attempts
      ASSOCIATES LLP
    • Computer Security- Internal Control Objectives
      • Physical security and access to programs and data are appropriately controlled (cont.)
        • Physical access to computer room
        • Controls over perimeter and network
          • Firewalls, routers, terminal service devices, wireless security
      ASSOCIATES LLP
    • Computer Security- Internal Control Objectives
      • Program changes and systems acquisition and development are appropriately managed
        • Application, database, and operating system changes tracked
        • Application controls considered and documented during implementation of new information systems
      ASSOCIATES LLP
    • Computer Security
      • Questions?
      ASSOCIATES LLP
    • Financial Reporting
      • Section 3- Financial Reporting
      • Financial Closing and Reporting
      • Capturing and Processing Non-Routine Information
      • Preparing and Reviewing Financial Statements and Disclosures
      ASSOCIATES LLP
    • Financial Reporting- Financial Closing and Reporting
      • Discussion Question:
      • Time to close the books.
      • Where do you start?
      ASSOCIATES LLP
    • Financial Reporting- Financial Closing and Reporting
      • Tips/Procedures for a Successful Close
        • Have a documented period close process with timing and assigned tasks
        • Non-routine events or transactions should be documented with supporting analysis or documentation as they occur
      ASSOCIATES LLP
    • Financial Reporting- Financial Closing and Reporting
      • Tips/Procedures for a Successful Close (cont)
        • Ensure all journal entries have adequate supporting documentation
        • Review prior year ending trial balance for significant variances to ensure all items captured
        • Review prior year closing journal entries and auditor’s adjusting entries
      ASSOCIATES LLP
    • Financial Reporting- Non-Routine Information
      • Improper recording of non-routine transactions is responsible for the majority of audit adjustments
      ASSOCIATES LLP
    • Financial Reporting- Non-Routine Information
      • Examples of non-routine transactions
        • Depreciation
        • Debt issuances
        • Capital Leases
        • Fixed asset additions/disposals
        • Allowance for bad debt
      ASSOCIATES LLP
    • Financial Reporting- Non-Routine Information
      • Sources of information used to capture non-routine transactions
        • Board minutes and board resolutions
        • Budget to actual comparisons
        • Prior year journal entries
        • Discussions with department managers
      ASSOCIATES LLP
    • Financial Reporting: Preparing and Reviewing Financial Statements
      • SAS 112
        • Auditor cannot be part of entity’s internal controls
        • This includes controls over financial reporting
        • So does that mean the Districts have to prepare their own financial statements?
      ASSOCIATES LLP
    • Financial Reporting: Preparing and Reviewing Financial Statements
      • Gathering information for financial statements
        • Disclosure checklist
          • Ask your auditor for a copy
        • Review of prior year audited financials
        • Examples of common disclosures
          • PERS and other Retirement Plans
          • Operating Leases
          • Subsequent Events
      ASSOCIATES LLP
    • Financial Reporting
      • Questions?
      ASSOCIATES LLP
    • Other Ways to Increase Efficiency
      • Email and Calendar
      • Hardware
      • Moving Away From Paper
      ASSOCIATES LLP
    • Other Ways to Increase Efficiency
      • Email and Calendar
        • Spam Filtering
        • Turn off new mail alerts
          • Set specific times to check emails
        • Recurring and Assigning of Tasks
        • Calendar Sharing
        • Search Utilities
          • Google Desktop
      ASSOCIATES LLP
    • Other Ways to Increase Efficiency
      • Hardware
        • Dual Monitors
        • PDAs, Smartphones
        • Specialized Devices
          • Wireless meter readers
          • In-office barcode scanners
      ASSOCIATES LLP
    • Other Ways to Increase Efficiency
      • Moving Away from Paper
        • Document Management Systems
        • PDF instead of Fax
          • www.pdf995.com
          • www.efax.com
      ASSOCIATES LLP
    • Questions? ASSOCIATES LLP
    • Resources and Links
      • AICPA Governmental Audit Quality Center
        • http://gaqc.aicpa.org
      • FASB Statements
        • www.fasb.org/st
      • GASB Statements
        • www.gasb.org
      • AICPA Statement of Auditing Standards
        • http://www.aicpa.org/Professional+Resources/Accounting+and+Auditing/Audit+and+Attest+Standards/
      • CSDA
        • http://www.csda.net
      ASSOCIATES LLP
    • Mission Statement To provide responsive, innovative services of the highest quality to our clients; and to provide a positive, rewarding environment encouraging our employees to fulfill their professional and personal goals. Sacramento Office 2515 Venture Oaks, Suite 135 Sacramento, CA 95833 Tel (916) 929-0540 Fax (916) 929-0541 www.muncpas.com Justin J. Williams, CPA – Partner [email_address] Dustin Cassady – Senior Accountant [email_address] Contact Info: ASSOCIATES LLP