Financial Reporting - Florida Policies and Regulations

The flashcards below were created by user playboy35 on FreezingBlue Flashcards.

  1. Florida Statute 218.32 of the Uniform Local Government Financial Management and Reporting Act requires each local government to provide an __________ and ___________ no later than 45 days after the completion but no later than 9 months after the fiscal year.
    • -Audit report
    • -Annual Financial Report
  2. When is a local government exempt from F.S. 218.32 and which statute creates the exemption?
    F.S. 218.39 exempts local governments from meeting the provisions of F.S. 218.32 when entity is notified by the first day of the fiscal year that the Auditor General will perform the audit.
  3. In order for local governments & school districts to be considered in a financial statement of emergency, therefore subject to the review and oversight by the Governor/Commisssioner of Education which set of financial conditions must occur?
    • Failure with the same fiscal year in which due:
    • -To pay short term loans
    • -Failure to make bond debt service or other long term debt payments when due, as a result of lack of funds
    • -Failure to pay uncontested claims from creditors within 90 days after the claim if presented, as a result of lack of funds

    • Failure to transfer at the appropriate time, due to lack of funds:
    • - Wages and salaries owed to employees; or retirement benefits owed to former employees
  4. When a local government feels that it needs to declare a financial emergency whom must the government contact?
    The Governor and Legislative Audit Committee
  5. When a district school board feels that it needs to declare a financial emergency whom must the school district contact?
    The Commissioner of Education and the Legislative Audit Committee.
  6. If one or more specified conditions have occurred or will occur if action is not taken to assist the local government or school district, is that considered a financial emergency?
  7. Must a state agency within 30 days after determining that one or more of the specified conditions have occurred/will occur notify the Governor/Commissioner of Education and Legislative Audit Committee?
  8. Who determines if state assistance is needed?
    Governor/Commissioner of Education; If state assistance is needed the local government is considered in a state of financial emergency.
  9. Which measures can the Governor/Commissioner of Education implement in order to assist the local government in resolving the financial emergency?
    -Require the local gov or school district budget to be approved by the Governor or Commission of Ed.

    -Authorize state loans and provide for repayment of the same

    -Prohibit local gov from issuing bonds, notes, etc.

    -Inspect/review records, reports, assets

    -Provide technical assistance

    -Establish financial emergency board to oversee local gov activities

  10. Can chartered cities and counties use their own selection procedures when selecting an auditor?
    Yes, per F.S. 218.39
  11. According to FS 218.39 subsection 3, who is charged with establishing and auditor selection committee and auditor selection procedures?
    The governing body of the city or county unless they choose to use the procedures outlined in subsection 3.
  12. Auditor selection committee shall consist of:
    County Officers and one member of the board or its designee.
  13. Does the committee have to publicly announce when auditing services are being requested?
    Yes. They must do so by a public notice that MUST include general description of the audit and how interested CPAs can apply for consideration.
  14. Firms interested in providing professional auditing services to a city or county must submit:
    Annually, a statement of qualifications and performance data.
  15. Does the committee have to adopt procedures for evaluation of professional services?
    Yes. Usually the criteria used to evaluate a professional are:

    • Capabilities
    • Adequacy of personnel
    • Past record
    • Experience
    • Results of recent external quality control reviews
  16. Can the audit selection committee exclude the public from the selection proceeding?
  17. When seeking professional audit services, non-chartered counties and school districts must follow procedures for:
    • Membership of selection committee
    • Interviewing firms qualified by law
    • Committee meeting must be open to the public
    • Factors to be considered in auditor selection
  18. According to FS 11.45, a government entity is:
    A state agency, a county agency, or any other entity, however styled, that independently exercises any type of state or local governmental function.
  19. According to FS 11.45, a local government entity is:
    A county agency, municipality, or special district as defined in s.189.403, but does not include any housing authority established under chapter 421.
  20. According to FS 11.45, a Management Letter is:
    A statement of the auditor’s comments and recommendations.
  21. According to FS 11.45, a audit is:
    A financial audit, operational audit, or performance audit.
  22. According to FS 11.45, a County Agency is:
    A board of county commissioners or other legislative and governing body of a county, however styled, including that of a consolidated or metropolitan government, a clerk of the circuit court, a separate or ex officio clerk of the county court, a sheriff, a property appraiser, a tax collector, a supervisor of elections, or any other officer in whom any portion of the fiscal duties of the above are under law separately placed.
  23. According to FS 11.45, a financial audit is:
    An examination of financial statements in order to express an opinion on the fairness with which they are presented in conformity with generally accepted accounting principles and an examination to determine whether operations are properly conducted in accordance with legal and regulatory requirements.

    Financial audits must be conducted in accordance with auditing standards generally accepted in the United States and government auditing standards as adopted by the Board of Accountancy.
  24. According to FS 11.45, a operational audit is:
    An audit whose purpose is to evaluate management’s performance in establishing and maintaining internal controls, including controls designed to prevent and detect fraud, waste, and abuse, and in administering assigned responsibilities in accordance with applicable laws, administrative rules, contracts, grant agreements, and other guidelines. Operational audits must be conducted in accordance with government auditing standards.

    Such audits examine internal controls that are designed and placed in operation to promote and encourage the achievement of management’s control objectives in the categories of compliance, economic and efficient operations, reliability of financial records and reports, and safeguarding of assets, and identify weaknesses in those internal controls.
  25. According to FS 11.45, a performance audit is:
    • An examination of a program, activity, or function of a governmental entity, conducted in accordance with applicable government auditing standards or auditing and evaluation standards of other appropriate authoritative bodies. The term includes an examination of issues related to:
    • 1. Economy, efficiency, or effectiveness of the program.
    • 2. Structure or design of the program to accomplish its goals and objectives.
    • 3. Adequacy of the program to meet the needs identified by the Legislature or governing body.
    • 4. Alternative methods of providing program services or products.
    • 5. Goals, objectives, and performance measures used by the agency to monitor and report program accomplishments.
    • 6. The accuracy or adequacy of public documents, reports, or requests prepared under the program by state agencies.
    • 7. Compliance of the program with appropriate policies, rules, or laws.
    • 8. Any other issues related to governmental entities as directed by the Legislative Auditing Committee.
  26. According to FS 11.45, the Auditor General duties include:
    Conducting audits and perform related duties as prescribed by law or directed by the Legislative Audit Committe;

    • Annually conduct financial audits of:
    • -State governments
    • -All universities and district boards of trustee of community colleges
    • -All district school boards (counties with population <150k)
    • -Wireless Emergency Telephone System Fund
    • -Florida School for the Deaf and the Blind
  27. Every 2 years the Auditor General must:
    • Conduct operational audits of state agencies and universities:
    • In connection with these audits, AG shall give appropriateconsideration to reports issued by state agencies' inspectorsgeneral or universities' inspectors general & resolution of findingstherein.

    Conduct a performance audit of the local government financial reporting system:

    • Purpose
    • To determine accuracy, efficiency, & effectiveness of reporting systemin achieving its goals
    • To make recommendations to local governments, the Governor, &Legislature
    • How reporting system can be improved
    • How program costs can be reduced
  28. The Auditor General conducts audits of local governments when:
    • Determined to be necessary by the AG
    • Directed by the Legislative Auditing Committee
    • Otherwise required by law
  29. No later than 18 months after the AG releases his/her audit report, the AG shall:
    Perform follow-up procedures to determine audited entity's progress in addressing the findings and recommendations.

    The AG shall provide a copy of the determination to each member of the audited entity's governing body & to the Legislative Auditing Committe.
  30. Once every 3 years the AG must conduct:
    Performance audits of Department of Revenue's administration of ad valorem tax laws

    Financial audits of all school districts boards of counties with populations >150,000

    Review sample of each state agency's internal audit report to determine compliance with current Standards for the Professional Practice of Internal Auditing or, if appropriate, government auditing standards.
  31. If the AG is going to conduct an audit it must be made and completed within:
    Not more than 9 months following the end of the local government's or school districts fiscal year or at such lesser time
  32. If the AG determines that conducting an audit required by law would not be possible due to workload or would not be an efficient or effective use of resources based an assessment of risk, the AG may:
    Temporarily/indefinitely postpone for such period/any portion thereof, unless otherwise directed by the Legislative Audit Committee.
  33. The Legislative Audit Committee is a standing joint committee consisting of how many members?
    • 10 members:
    • 5 members of the Senate - appointed by the President of the Senate

    5 members of the House of Reps - appointed by the Speaker of the House

    Terms run 2 years from organization of Legislature to the organization of the next Legislature.
  34. If the Legislative Audit Committee requests that the Auditor General conduct an audit, does the LAC pay for expenses associated with conducting the audit?
    Yes. The AG shall estimate the; 50% of estimate paid by the local government being audited before the start of the audit;

    Once the audit has been completed the AG shall notify the local government of the actual cost.
  35. If a local government requests that the Auditor General conduct an audit, does the local government pay for the audit.
    Yes. The local government will remit the remainder of the cost to the AG.

    If the local government failures to comply - AG shall notify LAC

    If the local government fails to comply the AG shall also notify the Department of Financial Services, or the Division of Bond Finance of the State Board of Administration and possible hearing may ensue

    If a hearing is scheduled the LAC shall determine if LG should be subject to further state action and it will also determine if any non pledged funds payable to LG should be withheld until the LG complies with the law
  36. According to F.S. 10.556, the FL Single Audit Act:
    Scope shall include additional activities necessary to establish compliance with financial statement audit as defined and used;

    • When applicable, scope shall encompass additional activies necessary to establish compliance with:
    • Federal Single Audit Act amendments of 1996
    • OMB Circular No A-133
    • Other applicable Federal Law
    • Florida Single Audit Act

    Similar to FS audit definitions
  37. If the AG conducts an single audit, the scope of the audit shall include:
    Use of financial condition assessment procedures to assist the auditor in detecting deteriorating financial conditions

    The auditor may use the financial condition assessment procedures developed by the AG or appropriate alternative;

    Financial condition assessment shall be done as of fiscal year end - give consideration to subsequent events that could significantly impact financial condition.
Card Set:
Financial Reporting - Florida Policies and Regulations
2012-03-16 18:01:02
CGFO Financial Reporting Budget Florida Policies Regulations

Financial Reporting - Uniform Local Government Financial Management and Reporting Act
Show Answers: