1. Auditor & Finance Officer Trainings Kentucky Department of Education Division of District Support June 2015

2. KDE Audit Review  Audited Annual Financial Report  Audited Balance Sheet  Independent Financial Audit Report  On-Behalf Payments 2

3. On-Behalf Payments  Health Benefits  Retirement  Technology  Debt Service  KISTA energy savings capital leases http://education.ky.gov/districts/FinRept/Pages/On-Behalf-Payments- Information.aspx 3

4. Common Errors  Misclassification of Fund Balance  Deficit in other Funds  SFCC Escrow entries in even-numbered fiscal year  Missing/Incorrect On-Behalf Payments  Missing Audit Adjustments 4

5. AFR/Balance Sheet Errors  AFR/Balance Sheet submitted after due date  Multiple AFR/Balance Sheet Submissions  Misclassification of Fund Balance  Missing Audit Adjustment Entries 5

6. AFR/Balance Sheet Errors  Escrow Fund 310 & Fund 320 in even-numbered year  Missing/Incorrect On-Behalf Payments  Deficit in other Funds 6

7. Audit Report Errors  Audit Report submitted after due date  Multiple Audit Report Submissions  Missing Financial Statements  Noncompliant – GASB 54  Noncompliant - GASB 63 & 65 7

8. Audit Report Errors  Noncompliant – Clarity Standards  Missing On-Behalf Payments from Notes disclosure  Schedule of Findings & Questioned Costs – missing findings  Financial Statements and Notes to the Financial Statements did not correspond/agree  Prior FY’s A-133 Desk Review findings included 8

9. Audit Report Errors  Pages did not foot or match other pages  Total Net Position in the Statement of Net Position and the Statement of Activities did not agree  Total Fund Balance in the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balance did not agree 9

10. KDE Audit Resources  Audit Contract Package http://education.ky.gov/districts/FinRept/Pages/District-Financial-Audit- Contracts.aspx  Frequently Asked Audit Questions http://education.ky.gov/districts/FinRept/Pages/District-Financial-Audits.aspx  Important Audit Information for School Districts http://education.ky.gov/districts/FinRept/Pages/District-Financial-Audits.aspx 10

11. KDE Audit Resources  Fiscal YE Processing BGL-2 http://education.ky.gov/districts/Pages/MUNIS-Guides.aspx  Finance Newsletter http://education.ky.gov/districts/FinRept/Pages/Financial%20Management%20Cale ndar,%20Financial%20Management%20Manual,%20Insurance%20Guidelines,%20 Who%20Does%20What%20in%20DDS,%20Finance%20Newsletters.aspx  MUNIS COA http://education.ky.gov/districts/FinRept/Pages/Fund%20Balances,%20Revenues% 20and%20Expenditures,%20Chart%20of%20Accounts,%20Indirect%20Cost%20Rat es%20and%20Key%20Financial%20Indicators.aspx 11

12. KDE Contacts Questions? 502-564-3846 LaTonya Bell, Branch Manager - Ext. 4418 latonya.bell@education.ky.gov Jaime Rice, Financial Analyst - Ext. 4407 jaime.rice@education.ky.gov Beth Wheeler, Financial Analyst - Ext. 4425 beth.wheeler@education.ky.gov 12

13. Questions and Answers 13