Current through March 20, 2024
The audit must be conducted in accordance with Auditing
Standards Generally Accepted in the United States of America and the standards
for financial and compliance audits contained in Government
Auditing Standards issued by the Comptroller General of the United
States (Appendix C, a copy of which is on file at the Nebraska Department of
Education's central office in Lincoln
003.01 If a separate management letter is
referenced as a part of the Report on the Internal Control and/or the Report on
Compliance with laws and regulations it shall be filed as part of the financial
(audit) report.
003.02 All school
districts that expend $750,000 or more in a fiscal year in federal awards
(including the value of commodities provided by the U.S. Department of
Agriculture) are also required to have an audit conducted and reported in
accordance with 2 CFR Part 200 Subpart F - Audit Requirements (Appendix A, a
copy of which is on file at the Nebraska Department of Education's central
office in Lincoln), and the American Institute of Certified Public Accountants
Audit and Accounting Guide entitled Audits of State and Local
Governmental Units (Appendix B, a copy of which is on file at the
Nebraska Department of Education's central office in Lincoln).
003.03 The tests for compliance required for
the audit includes those necessary to conform to current Auditing Standards
Generally Accepted in the United States of America and Government
Auditing Standards (Appendix C, a copy of which is on file at the
Nebraska Department of Education's central office in Lincoln). The audit
includes tests for compliance with the calculation of Average Daily Membership
reported on the Annual Statistical Summary Report as specified in 92 NAC 2,
requirements of the Nebraska Budget Act (commencing with Section
13-501
R.R.S.), and the Tax Equity and Educational Opportunities Support Act
(commencing with Section
79-1001
R.R.S.) for school districts.
003.03A All
compliance deviations related to Average Daily Attendance and Average Daily
Membership (as those two elements are described in Section 006 of 92 NAC 2),
the Nebraska Budget Act and the Tax Equity and Educational Opportunities
Support Act (TEEOSA) must be included in the report on compliance required by
Government Auditing Standards (Appendix C, a copy of which is on file at the
Nebraska Department of Education's central office in Lincoln) or a letter to
management (the School District Board of Education) and must be addressed by
the school district per Section
003.05 of this Chapter.
003.03B
Average Daily Attendance
(ADA) and Average Daily Membership (ADM) Testing Requirements for School
Districts: Written documentation of the testing done of the ADA
and ADM must be completed and submitted with all school district audit reports.
The documentation must state confirmation of the following:
003.03B1 Documentation of the school
district's policies and procedures for collecting student membership and
attendance data.
003.03B2 The
school district is following its policies and procedures for collecting student
census data.
003.03B3 Attendance at
the school district is collected at least daily and calculated to the nearest
hundredth of a day.
003.03B4 The
school district maintains a cumulative attendance and membership record of each
student.
003.03B5 The cumulative
attendance and membership records contain the date of enrollment, number of
days or partial days in attendance and absent during each school year enrolled,
and the date of withdrawal or graduation.
003.03B6 The student attendance reported in
the Nebraska Department of Education's (NDE) approved data collection system
(e.g. ADVISER) have been traced back to the school district's student
information system for the school year.
003.03C A statement must be written for the
following: A sample pool of students attendance records must be tested for the
school year and must be traced to the students' enrollment files to verify that
the sample students' are enrolled as students' of the school district for the
dates claimed in the attendance record.
003.03C1 If applicable: Reportable instances
of noncompliance were included in the Independent Auditor's Report on Internal
Control Over Financial Reporting and on Compliance and Other Matters Based on
an Audit of Financial Statements Performed in Accordance With
Government Auditing Standards.
003.03D A statement must be written for the
following: A sample of expense allocations were tested verifying appropriate
allocating to the school building level.
003.03D1 If applicable: Reportable instances
of noncompliance were included in the Independent Auditors Report on Internal
Control Over Financial Reporting and on Compliance and Other Matters based on
an Audit of Financial Statements performed in accordance with Government
Auditing Standards.
003.04
Financial (Audit) Report
Format. The financial reports and schedules should include:
003.04A A report cover, index or table of
contents, independent auditors' reports (financial, compliance and internal
control), Management's Discussion and Analysis (MD&A), government-wide and
fund financial statements (including notes thereto), other required
supplementary information (RSI), other supplemental schedules formatted as
prescribed by the NDE and any additional information as may be required by the
Nebraska Revised Statutes and reporting standards as
may be appropriate to the cash or modified accrual basis. If the financial
statements are prepared on a basis of accounting other than the cash basis, the
financial report must include supplementary schedules of cash receipts,
disbursements and fund balances of all funds maintained by the district, which
schedules shall be reported on as audited accompanying information.
003.04B The financial (audit report) shall be
on letter-size pages.
003.05 All school districts shall file with
the Commissioner of Education on or before November 5 a copy of the financial
(audit) report which includes the ADA/ADM testing letter. All school districts
shall file with the Commissioner of Education on or before January 31, a copy
of the auditor's letter to management, together with the district's responses,
and any responses to compliance issues resulting from the audit. The financial
(audit) report for all school districts must also be filed with the Auditor of
Public Accounts on or before November 5.
003.06 If a school district that was in
existence any time during the fiscal year dissolves and merges with one or more
school districts prior to the completion of an independent financial (audit)
report then:
003.06A The school district that
receives the largest portion of the dissolved district's valuation is
responsible, in cooperation with the dissolving district's Board of Education,
for obtaining and filing financial (audit) report for the dissolved
district.
003.06B The dissolved
district's financial (audit) report shall cover the entire fiscal year
(September 1 through August 31).
