proceeds are restricted to expenditures for textbooks, instructional materials, supplies and equipment. d. Other revenue sources identified by the Auditor of State, in consultation with the Department of Education, in rules adopted by the Auditor of State. Expenditures in excess of the current year set-aside requirements and e. the carry over balance in the textbooks and instructional materials set-aside may be carried forward to reduce future years’ textbooks and instructional materials set-aside requirements. Contributions in excess of required set-asides may also be carried forward to offset future year(s) textbook and instructional materials set-aside requirements. 6. Read any information included in the report (e.g., the introductory and statistical sections of a CAFR), and determine whether it is consistent with the note. If the information is materially inconsistent or misstated, consult with Accounting & Auditing Support if the client refuses to make necessary changes. Prepare a narrative for the working papers that describes the 7. nature, timing, and extent of our tests of the reserve. Audit Program B – AUDITING THE CAPITAL IMPROVEMENTS AND MAINTENANCE RESERVE If the school district elected to apply the pre-July 1, 2001 base calculation, use Audit Program E. Done Step By or Date No. Procedure for Consideration N/A Comp 1. Testing note accuracy. a. Obtain the school district’s set aside note and supporting documentation. b. Foot and crossfoot the note Foot and crossfoot the client’s underlying calculations (if any). c. 2. Trace beginning of the year balance to prior audited financial statements or working papers. 3. Test the annual reserve calculation by multiplying the percentage by the amount” and multiplying the result by the school “formula district’s population”. The preceding year’s “student “formula amount” and population” should be used for this “student calculation: [(% x Formula Amount) x Student Population] a. This information is available for each school district and joint vocational school district on the Ohio Department of Education’s website:
proceeds are restricted to expenditures for textbooks, instructional materials, supplies and equipment. d. Other revenue sources identified by the Auditor of State, in consultation with the Department of Education, in rules adopted by the Auditor of State. e. Expenditures in excess of the current year set-aside requirements and the carry over balance in the textbooks and instructional materials set-aside may be carried forward to reduce future years’ textbooks and instructional materials set-aside requirements. Contributions in excess of required set-asides may also be carried forward to offset future year(s) textbook and instructional materials set-aside requirements. 6. Read any information included in the report (e.g., the introductory and statistical sections of a CAFR), and determine whether it is consistent with the note. If the information is materially inconsistent or misstated, consult with Accounting & Auditing Support if the client refuses to make necessary changes. 7. Prepare a narrative for the working papers that describes the nature, timing, and extent of our tests of the reserve. Audit Program – B AUDITING THE CAPITAL IMPROVEMENTS AND MAINTENANCE RESERVE If the school district elected to apply the pre-July 1, 2001 base calculation, use Audit Program E. Step No. Procedure for Consideration Done By or N/A Date Comp 1. Testing note accuracy. a. Obtain the school district’s set aside note and supporting documentation. b. Foot and crossfoot the note c. Foot and crossfoot the client’s underlying calculations (if any). 2. Trace beginning of the year balance to prior audited financial statements or working papers. 3. Test the annual reserve calculation by multiplying the percentage by the “formula amount” and multiplying the result by the school district’s “student population”. The preceding year’s “formula amount” and “student population” should be used for this calculation: [(% x Formula Amount) x Student Population] a. This information is available for each school district and joint vocational school district on the Ohio Department of Education’s website:
OCSChapter1-budgetaryAndRelated.docx