Implemented GASB Statement No. 77, Tax Abatement Disclosures. The following changes have been made to the sample report. Included a note disclosure regarding the County’s tax abatements and tax abatements of entities in the Notes to Financial Statements. (Note 13) a New Accounting Pronouncement footnote in the Notes to Financial Statements. (Note 18) Included a note disclosure in the Notes to Financial Statements regarding a prospective accounting change for GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. (Note 19) findings included in Part II and Part III of the Schedule of Findings and Questioned Costs were reviewed to more clearly identify the elements of a finding as required by Government Auditing Standards, Chapter 4.10-.14 and Title 2, U.S. Code of Federal Regulations, Part 200.516, Uniform Administrative Requirements, Costs Principles and Audit Requirements for Federal Awards (Uniform Guidance). Additional Notes Also attached are a sample Corrective Action Plan for Audit Findings (See Sample A) and a sample Summary Schedule of Prior Audit Findings (See Sample B). These are provided for illustrative purposes only and are not intended to match the findings shown in the sample entity nor are they required to be filed with this Office. If the County has deposits in credit unions at June 30, 2017, Note 2 should be modified to indicate whether the deposits were covered by federal depository insurance, collateralized with securities or letters of credit held by the County or the County’s agent in the County’s name or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. If the County operates a sanitary landfill, disclosure of the closure and postclosure care should be included in the Notes to Financial Statements. In addition, findings pertaining to compliance with solid waste fees used or retained and financial assurance should be included in Part IV of the Schedule of Findings and Questioned Costs. See Sample Accrual County Landfill Association or Sample Cash Landfill Commission for examples of the required disclosures and findings. Following is an example footnote for an retirement or other benefit plan or policy which meets the definition of a “termination benefit” as defined by GASB Statement No. 47.
Sample Entity Corrective Action Plan Year ended June 30, 2017 Comment Number Comment Title Corrective Action Plan Contact Person, Title, Number Anticipated Date of Completion II-A-17 Segregation of Duties We have reviewed procedures and plan to make the necessary changes to improve internal control. Tom Claim, Administrator, (515) YYY-XXXX November 2, 2017 II-B-17 Financial Reporting We will revise our current procedures to ensure the proper amounts are recorded in the financial statements in the future. Joe Smith, Program Director, (515) YYY-XXXX November 2, 2017 2017-001 Unsupported Expenditures We will revise our procedures so documentation (e.g. invoices and time cards) is maintained to support federal expenditures. We returned the $25,589 of questioned costs to the Iowa Economic Development Authority on October 3, 2017. Tom Claim, Administrator, (515) YYY-XXXX Documentation to support expenditures will be maintained effective immediately. The questioned costs were returned to the Iowa Economic Development Authority on October 3, 2017. 2017-002 Segregation of Duties over Federal Revenues We have reviewed procedures and plan to make the necessary changes to improve internal control. Specifically, the custody, record-keeping and reconciling functions currently performed by the Deputy Treasurer will be separated and spread among the Treasurer, Deputy Treasurer and Clerk. Julie Ledger, Treasurer, (515) YYY-XXXX November 2, 2017 2017-003 Financial Reporting We have implemented an independent review process which requires review by the Program Director, effective immediately. In addition, beginning with the December 2017 quarterly report, we will submit federal financial reports within the required time frame. Joe Smith, Program Director, (515) YYY-XXXX Review procedures have been implemented. Timely report filing will begin with the quarter ending December 2017. In accordance with Uniform Guidance Section 200.511(a), the Corrective Action Plan must include findings relating to the financial statements which are required to be reported in accordance with Government Auditing Standards.