SECTION 8: Agreed-Upon Procedures Report on CSP Funding 19 APPENDIX A – Template for Independent Accountant’s Report on the Initial Statement 22 APPENDIX B – Template for Independent Accountant’s Report on CSP Funding 25 APPENDIX C – Auditor Checklist for Audits of NYSED Authorized Charter Schools 27 APPENDIX D – Sample Schedule of Functional Expenses 30 APPENDIX E – Sample Reports on Internal Controls and Compliance - From AICPA Audit Guide, GAS and Uniform Guidelines 33 APPENDIX F – Finding Flowchart From AICPA Audit Guide, GAS and Uniform Guidelines 41 APPENDIX G – Procedures to Consider During Lottery Observations and NYSED Weighted Lottery Guidance 42 APPENDIX H – Accounts Receivable and Per-Pupil Aid Confirmation Template 46 APPENDIX J - Additional Resources 47 APPENDIX K – Definition of Terms 48 Planning for 2019 Please submit suggestions for the 2018-19 Audit Guide to the attention of David Frank at . Items submitted throughout the year will be reviewed in January 2019 by the Audit Guide committee. What’s New in 2018 SECTION 3 and APPENDIX A: Clarify that both New York charter school authorizers require an Initial Statement and Independent Accountant’s Report; update of the Independent Accountant’s Report template. APPENDIX B: Update of the Independent Accountant’s Report on CSP Funding template. What Was New in 2017 SECTION 6 and APPENDIX C: Removal of certificate of occupancy and fire safety inspection documentation from internal control over financial reporting process Members of the 2018 Audit Guide Committee: Barbara Acenowr Karen Burhans, CPA Michelle Cain, CPA Kenneth Cerini, CPA David Frank Sarah Hopkins, CPA
CPA Signature and Date Appendix C – Auditor Checklist for Audits of Regents-Authorized Charter Schools SED- Authorized Charter School Compliance Practice Aid Charter School: Year Ended: Compliance Practice Aid No N/A Explanation Applicable for schools in their first year of operations: Has the school provided the initial statement of controls to SED? Was the initial statement of controls ratified by the Board prior to submission to SED? Has the auditor prepared and submitted the Agreed-Upon Procedures (AUP) report on the initial statement of controls to the school? If there were any findings, has the school remedied the findings within 45 days of the auditors’ report? Applicable for both new and continuing schools: Have the financial statements been prepared on the accrual in accordance with GAAP? Has the audit been conducted in accordance with GAAS, GAGAS, and, if applicable, OMB Uniform Guidance? b (1). Have the independence considerations been documented? b (2). Has the CPA firm had an independent peer review within the last 3 years? b (3). Are all engagement team members compliant with the CPE requirements? Do the financial statements include a statement of functional expenses that follows Appendix D of the Have expense allocations been included as part of the audit, and have the auditors concluded they are reasonable? Do the financial statements disclose any facilities (including square footage), transportation services, or services provided by the local district? Is the required report on internal control over financial reporting and on compliance with provisions of laws, regulations, contracts and grant agreements been prepared? If the school has expended over $750,000 in Federal has a Single Audit been completed? g (1). Has the required report on compliance and internal control over compliance of major programs and the SEFA been prepared?
FTE – Full Time Equivalent GAAP - Generally Accepted Accounting Principles GAAS - Generally Accepted Auditing Standards GAGAS - Generally Accepted Government Auditing Standards GAO - United States Government Accountability Office GAQC - Governmental Audit Quality Center – section of the AICPA which provides guidance to auditors in performing Governmental and Single Audits IEP - Individualized Education Program – prepared for each special education student Initial Statement – Initial Statement of Controls provided by the Charter School to NYSED concerning the status of management and financial controls NYCDOE – New York City Department of Education NYSED – New York State Education Department SEFA - Schedule of Federal Expenditures – included in financial statements audited in accordance with OMB Uniform Guidance Single Audit – Audit conducted in accordance with OMB Uniform Guidance SPED – Special Education WLG – Weighted Lottery Generator