Accounting and Auditing
Advisory concerning audits of the 2000-2001 End of Year Reports (EOYR)
School Finance regulations (603 CMR 10.10) require annual audits of the school returns (EOYR) filed with the Department. The suggested guidance for these audits is contained in the Compliance Supplement. The original supplement was issued to audit the FY'00 school returns. While few changes have occurred in the EOYR, the most significant change concerned Schedule 3, requiring districts to delineate all Instructional (2000 series) costs by school, for all fund sources. In the first year of implementation, we chose not to include additional procedures for Schedule 3.
Audit professionals have voiced concerns over the type of audit engagement as well as the language used in the suggested report. As a result, we allowed auditors to issue reports as Agreed Upon Procedures engagements. That practice will continue for the audits of FY'01 school returns as well.
School Finance regulations require districts to file audits with the Department by March 31. We are extending the deadline for audits of FY'01 until June 30, 2002.
During the next few months we will be working with a group of audit professionals to resolve any technical issues and establish new procedures that will be used for audits of FY'02 school returns.
If you have any questions about Compliance Supplement audits, please contact Jay Sullivan at email@example.com or by phone at 781-338-6594.