Pennsylvania Code
Title 22 - EDUCATION
Part XII - Basic Education
Chapter 171 - STANDARDS FOR APPROVED PRIVATE SCHOOLS
Subchapter C - INTERIM AUDIT STANDARDS
Section 171.202 - General guidelines

Universal Citation: 22 PA Code ยง 171.202

Current through Register Vol. 54, No. 44, November 2, 2024

An approved private school shall maintain an accounting and bookkeeping system in accordance with the following standards:

(1) Accounts shall be kept in accordance with Generally Accepted Accounting Principles (GAAP) as defined by the American Institute of Certified Public Accountants, except as modified by § 171.205 (relating to exceptions to Generally Accepted Accounting Principles).

(2) Costs shall be properly assigned to a specific cost objective and indirect costs shall be allocated to direct costs. If multiple cost objectives are involved, financial information shall be segregated by cost objective in the bookkeeping records.

(3) Bookkeeping records must include the following:

(i) Cash receipts journal.

(ii) Cash disbursements journal.

(iii) General ledger.

(iv) Payroll journal.

(v) Fixed asset and depreciation listings.

(4) Adequate documentation to verify postings shall be maintained. The documentation must include the following:

(i) Purchase orders.

(ii) Customer invoices.

(iii) Vendor invoices.

(iv) Cash remittance advices.

(v) Employee expense reports.

(vi) Employee time records.

(5) A payroll shall be prepared and supported by appropriate documentation authorizing the rate of pay and employee time records, when necessary.

(6) A school shall maintain all pertinent financial records, including cost allocation worksheets, for 3 years after submission of the audit report.

(7) Schools shall submit audits to the Department by November 1 of each year.

(8) School audits shall be conducted by an independent certified public accountant.

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