Current through February 26, 2024
(1) DEFINITIONS. In this section:
(a) "Auditor" means the licensed accountant
employed by the school board to perform the audit.
(b) "Licensed accountant" means a person
licensed as a certified public accountant or a public accountant by the
accounting examining board under ch. 442, Stats.
(c) "Uniform grants guidance" means the
provisions of the United States office of management and budget, uniform
administrative requirements, cost principles, and audit requirements for
federal awards under 2 CFR, part 200.
(2) MINIMUM STANDARDS FOR AUDIT.
(a) Under s.
120.14(1),
Stats., at the close of each fiscal year, the school board of each common or
union high school district shall employ a licensed accountant to audit the
school district accounts and certify the audit. The minimum requirements for
the audit are as follows:
1. The auditor shall
conduct an examination of the basic financial statements including the
respective financial position of the governmental activities, each major fund,
and the aggregate remaining fund information of the school district for the
fiscal year.
2. The auditor's
examination shall be made in accordance with all applicable federal laws and
regulations and Wisconsin Statutes and administrative rules, including the
following:
a. Generally accepted auditing
standards as required under s.
Accy
1.202. For purposes of the contract under sub. (3),
the procedures necessary to comply with the generally accepted auditing
standards shall include the applicable procedures outlined by the American
institute of certified public accountants in the industry audit guide, audits
of state and local governmental units and by the department in the Wisconsin
school district audit manual.
b.
The standards for financial and compliance audits contained in the standards
for audits of governmental organizations, programs, activities, and functions,
issued by the comptroller general of the United States.
c. Uniform grants guidance.
3. The financial statements
presented in the auditor's report shall comply with generally accepted
accounting principles, as promulgated by the governmental accounting standards
board, and shall conform to the accounting system prescribed by the department
under s.
115.28(13),
Stats.
4. The auditor shall express
an opinion on the financial statements of all funds covered in the scope of the
audit. If the auditor is unable to express an unqualified opinion, the auditor
shall state fully the reasons for qualification or disclaimer of opinion. The
school district shall correct any deficiency which results in a qualification
or disclaimer of opinion.
(b)
Independence. The
auditor shall maintain independence with respect to the financial statements
and the opinion.
(c)
Timing, location and conduct of audit work.
1. The school district shall be responsible
for the proper recording of transactions in the books of account, for the
safeguarding of assets, and for the substantial accuracy of the financial
statements. The school district officers shall close and balance all accounts
and have the financial statements for all funds and account groups prepared
prior to examination by the auditor.
2. The audit shall be conducted on school
district premises.
3. The auditor
shall observe on school district premises the adequacy of the systems of
internal control for all funds of the school district, including those
concerned with maintaining compliance with legal provisions related to finance.
If material weaknesses are noted, the auditor shall review appropriate
recommendations with the appropriate administrator and shall include them in a
separate letter to the school board.
4. The auditor shall retain the audit
workpapers and reports for at least 3 years from the date of the audit report,
unless the auditor is notified in writing by the department or by the United
States department of education to extend the retention period. The auditor
shall respond directly to inquiries from the department or from the United
States department of education, and permit these agencies, upon written
request, to review audit workpapers. The auditor shall notify the school board
of any such inquiries or requests and of the auditor's response.
(d)
Reports. The
auditor shall submit to the school board the following reports and shall supply
copies for transmittal to the department and other agencies as may be required
under applicable statutes or rules:
1.
Auditor's report on the school district's financial statements prepared
according to generally accepted accounting principles, as promulgated by the
governmental accounting standards board, with supplemental information as
required by the department or requested by the district.
2. Financial audit statement for the fiscal
year.
3. Management letter,
commenting on material weaknesses in internal control and identifying possible
noncompliance with any legal provisions related to finance with appropriate
recommendations.
3m. Auditor's
communication with those charged with governance, including any significant
findings or issues from the audit.
4. Federal program audit reports and
schedules, as appropriate.
5. State
program audit reports and schedules, as appropriate.
6. Membership agreed upon procedures report,
prepared in accordance with standards for attestation engagements promulgated
by the American institute of certified public accountants, if required by the
department under s.
115.28(18),
Stats.
Note: The following forms are available at no
charge from the Department of Public Instruction, School Financial Services
Team, P.O. Box 7841, Madison, WI 53707:
PI 1506 Financial Audit Statement
(3) STANDARD SCHOOL DISTRICT AUDIT
CONTRACT. The school board may utilize the standard school district audit
contract format prescribed by the department in the appendix to this chapter.
If the school board does not utilize the format prescribed by the department,
it shall ensure that the contract contains all of the provisions in sub. (2)
and all of the following provisions:
(a) It
shall specify the compensation agreed upon between the school board and the
auditor including an estimate as to the total cost of the audit provided by the
auditor.
(b) It shall specify terms
of payment.
(c) It shall be signed
by both of the following:
1. A school district
officer who is authorized by the school board to enter into a contractual
agreement.
2. The owner or partner
of the audit firm.
(4) NONCOMPLIANCE WITH THE MINIMUM STANDARDS
FOR AUDIT. Any audit which the department determines is not in compliance with
this section shall be referred to the school district for corrective
action.
Audits of State and Local Governmental Units may be obtained
from the American Institute of Certified Public Accountants, 1211 Avenue of the
Americas, New York, NY 10036-8775.
Governmental Accounting and Financial Reporting Standards may
be obtained from the Governmental Accounting Standards Board of the Financial
Accounting Foundation, High Ridge Park, Stamford, CT 06905-0821.
The Wisconsin School District Audit Manual may be obtained
from the Department of Public Instruction, 125 South Webster Street, P.O. Box
7841, Madison, WI 53707.
Standards for Audits of Governmental Organizations,
Programs, Activities and Functions by the Comptroller General of the United
States may be obtained from Superintendent of Documents, Public Documents
Department, U.S. Government Printing Office, Washington, D.C. 20402.
All of the above publications are available for examination
at the Department of Public Instruction, School Financial Services Team, 125
South Webster Street, Madison, WI.