Minnesota Legal Compliance Audit Guide for Local Government - Section 6

Minnesota Office Of The State Auditor

Description

LEGAL COMPLIANCE MANUALEXAMPLES OF AUDITOR’S REPORTS ON COMPLIANCE Page Minnesota Legal ComplianceS Local Governmental Units (Other Than School Districts) 6-2S School Districts3S Charter Schools 6-4S Relief Associations5Combined ReportS Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 6-611/03 6-1Auditor' s legal compliance report for local governmental unit s other than school districts.(Note: This paragraph should be eliminated from the auditor's report.)AUDITOR'S REPORT ON LEGAL COMPLIANCE(Governing Body)(Entity)We have audited the general purpose f inancial st at ement s of ____________________ asof and for the year ended ____________ and have issued our report thereon dated_____________.We conducted our audit in accordance with auditing standards generally accepted inthe United States of America and the provisions of the Minnesota Legal ComplianceAudit Guide for Local Government, promulgated by the State Auditor pursuant toMinn. Stat. § 6.65. Accordingly, the audit included such tests of the accountingrecords and such other auditing procedures as we considered necessary in thecircumstances.The Minnesota Legal Compliance Audit Guide for Local Government covers fivecategories of compliance to be tested: contracting and bidding, deposits andinvestments, conflicts of int erest, public ...

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• Publié par: Thowyug
• Nombre de lectures: 8
• Langue: English

Extrait

LEGAL COMPLIANCE MANUAL

EXAM PLES OF AUDITOR’S REPORTS ON COMPLIANCE

Minnesot a Legal Compliance S al Unit Local Government rict s)s (Other Than School Dist S School Dist ricts S Chart er Schools S Relief Associat ions

Combined Report S and on Int ernal Cont rol OverReport on Compliance Financial Report ing Based on an A udit of Financial Statements Perf ormed in Accordance w it h Government Auditing Standards

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Auditor' s legal compliance report f or local government al unit sother than school districts. (Not e: This paragraph should be eliminated from t he auditor' s report.)

(Governing Body) (Entity)

AUDITOR' S REPORT ON LEGAL COMPLIANCE

We hav e audit ed t he general purpose f inancial st at ement s of ____________________ as of and f or t he y ear ended ____________ and hav e issued our report t hereon dat ed _____________.

We conduct ed our audit in accordance w it h auditing standards generally accept ed in t he Unit ed St at es of America and t he prov isions of t heMinnesot a Legal Compliance Audit Guide f or Local Governmentopursuant t he St ed by t A udit or at e , promulgat Minn. Stat. § 6.6 5. A ccordingly , t he audit included such t ests of t he account ing records and such ot her audit ing procedures as w e considered necessary in t he circumst ances.

Theor Local GovernmentGuide f Minnesota Legal Compliance Audit five covers cat egories of compliance t o be t ested: cont ract ing and bidding, deposits and inv estment s, conf lict s of int erest, public indebt edness, and claims and disbursement s. Our st udy included all of t he list ed categories, * except t hat w e did not t est f or compliance in (ident if y area not t est ed) because (state reasons for excluding any areas f rom audit ).

The result s of our t est s indicat e t hat f or t he it ems t est ed, t he ___________________ complied w it h t he mat erial t erms and condit ions of applicable legal provisions, except as described below (or in t he Schedule of Findings).

This report is int ended solely f or t he inf ormation and use of t he ______________ and is not int ended t o be, and should not be, used by any one ot her t han t hose specif ied part ies.

(Signat ure)

(Dat e)

Not e: This report on compliance may be issued as a separat e let t er or combined w it h t he “ Report on Compliance and on Int ernal Control Over Financial Report ing Based on an Audit of Financial St at ements Perf ormed in Accordance w it h Government Audit ing Standardsexample on page 66).” (see

*

If t he rest of t he sent ence does not apply, put a period here and cont inue t o t he next paragraph.

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Auditor' s legal compliance report f or school dist rict s.This paragraph should(Not e: be eliminated from t he auditor' s report.)

(Governing Body) (Entity)

AUDITOR' S REPORT ON LEGAL COMPLIANCE

We hav e audit ed t he general purpose f inancial st at ement s of ____________________ as of and f or t he y ear ended ___________ and hav e issued our report t hereon dat ed ___________.

We conduct ed our audit in accordance w it h auditing standards generally accept ed in t he Unit ed St at es of America and t he prov isions of t heLegal ComplianceMinnesot a Audit Guide f or Local Governmented by t , promulgat pursuant t A udit or at e he St o Minn. Stat. § 6.6 5. A ccordingly , t he audit included such t ests of t he account ing records and such ot her audit ing procedures as w e considered necessary in t he circumst ances.

TheMinnesot a Guide f Legal Compliance Audit or Local Governmentsix covers cat egories of compliance t o be t ested: cont ract ing and bidding, deposits and inv estment s, conf lict s of int erest, public indebt edness, claims and disbursements, and uniform f inancial account ing and report ing standards f or school district s. Our study included all of t he listed cat egories, * except t hat w e did not t est f or compliance in (ident if y area not t ested) because (stat e reasons for excluding any areas f rom audit ).

The result s of our t ests indicate that f or t he it ems t est ed, t he __________________ complied w it h t he material t erms and condit ions of applicable legal provisions, * except as described below (or in t he Schedule of Findings).

This report is int ended solely f or t he inf ormation and use of t he ______________ and is not int ended t o be, and should not be, used by any one ot her t han t hose specif ied part ies.

(Signat ure)

(Dat e)

Not e: This report on compliance may be issued as a separat e let t er or combined w it h t he “ Report on Compliance and on Int ernal Control Over Financial Report ing Based on an Audit of Financial St at ements Perf ormed in Accordance w it h Government Audit ing Standards” (see example on page 66).

*

lf t he rest of t he sent ence does not apply, put a period here and cont inue t o t he next paragraph.

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Auditor' s legal compliance report f or chart er schools. (Note: This paragraph should be eliminated from t he auditor' s report.)

(Governing Body) (Entity)

AUDITOR' S REPORT ON LEGAL COMPLIANCE

We have audit ed t he f inancial statements of as of and f or t he y ear ended ___________________, and have issued our report t hereon dat ed _____________.

We conduct ed our audit in accordance w it h audit ing standards generally accept ed in t he United States of A merica and t he prov isions of t heLegal ComplianceMinnesot a Audit Guide f or Local Governmentoor pursuant t he State Audit , promulgated by t Minn. Stat. § 6.6 5 . A ccordingly, t he audit included such t est s of t he account ing records and such ot her audit ing procedures as w e considered necessary in t he circumst ances.

TheMinnesot a or Local GovernmentLegal Compliance Audit Guide f  cov w oers t cat egories of compliance t o be t ested in audit s of chart er schools: unif orm f inancial accounting and report ing st andards, and chart er schools. Our st udy included t he list ed cat egories, * except t hat w e did not t est f or compliance in (ident if y areas not t est ed) because (state reasons f or excluding any areas f rom audit ).

The result s of our t ests indicate that f or t he it ems t est ed, t he _______________ complied w ith t he mat erial terms and conditions of applicable legal provisions, * except as described below (or in t he Schedule of Findings).

This report is int ended solely f or t he inf ormation and use of t he ______________ and is not int ended t o be, and should not be, used by any one ot her t han t hose specif ied part ies.

(Signat ure)

(Dat e)

Not e: This report on compliance may be issued as a separat e let t er or combined w it h t he “ Report on Compliance and on Internal Control Over Financial Report ing Based on an A udit of Financial St at ement s Perf ormed in Accordance w it h Government Audit ing Standardsexample on page 66).” (see

*

If t he rest of t he sent ence does not apply, put a period here and cont inue t o t he next paragraph.

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Auditor' s legal compliance report f or police and f ire relief associations. (Note: This paragraph should be eliminated from t he auditor' s report.)

(Governing Body) (Entity)

AUDITOR' S REPORT ON LEGAL COMPLIANCE

We have audit ed t he f inancial statements of t he Relief Associat ion as of and f or t he year ended ___________________, and have issued our report t hereon dat ed _____________.

We conduct ed our audit in accordance w it h auditing standards generally accept ed in t he Unit ed St at es of America and t he prov isions of t heLegal ComplianceMinnesot a Audit Guide f or Local Governmentpursuant t oed by t he St at e A udit or , promulgat Minn. Stat. § 6.6 5. A ccordingly , t he audit included such t ests of t he account ing records and such ot her audit ing procedures as w e considered necessary in t he circumst ances.

Theor Local GovernmentMinnesota Legal Compliance Audit Guide f hree cov ers t cat egories of compliance to be t est ed in audit s of relief associat ions: deposit s and inv estment s, conf lict s of int erest , and relief associat ions. Our study included all of t he list ed cat egories, * except t hat w e did not t est f or compliance in (ident if y areas not t ested) because (st ate reasons f or excluding any areas f rom audit ).

The result s of our t est s indicate t hat f or t he it ems t est ed, t he _______________ Relief Associat ion complied w ith t he mat erial t erms and condit ions of applicable legal provisions, * except as described below (or in t he Schedule of Findings).

This report is intended solely f or t he inf ormation and use of t he ______________ Relief Associat ion and is not int ended t o be, and should not be, used by any one ot her t han t hose specif ied part ies.

(Signat ure)

(Dat e)

*

If t he rest of t he sent ence does not apply, put a period here and cont inue t o t he next paragraph.

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Auditor' s compliance and internal cont rol report based on an audit of f inancial statements perf ormed in accordance w it hGovernment Audit ing Standards and t he Minnesot a Legal Compliance Audit Guide f or Local Government. (Note: This paragraph should be eliminated from t he auditor' s report.)

REPORT ON COM PLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

(Governing Body) (Entity)

We hav e audit ed t he f inancial st at ement s of ____________ as of and f or t he y ear ended _____________, and have issued our report t hereon dat ed __________. We conduct ed our audit in accordance w it h audit ing st andards generally accept ed in t he Unit ed St at es of America and t he standards applicable t o f inancial audit s cont ained inGovernment Audit ing Standards,Unit ed States.roller General of t he issued by t he Compt

Compliance*

As part of obtaining reasonable assurance about w het her ___________’s f inancial st atements are f ree of material misst atement, w e perf ormed test s of it s compliance w it h cert ain provisions of law s, regulat ions, cont ract s, and grant s, noncompliance w it h w hich could have a direct and material eff ect on t he det erminat ion of f inancial st at ement amount s. How ever, providing an opinion on compliance w it h t hose provisions w as not an object ive of our audit and, accordingly, w e do not express such an opinion. The result s of our t est s disclosed no instances of noncompliance t hat are required t o be reported undering Standards.Government Audit

Internal Control Over Financial Report ing*

In planning and perf orming our audit, w e considered ’ s int ernal cont rol ov er f inancial report ing in order t o det ermine our audit ing procedures for t he purpose of expressing our opinion on t he f inancial statements and not t o provide assurance on the int ernal cont rol over f inancial reporting. Our consideration of t he int ernal cont rol over f inancial reporting w ould not necessarily disclose all matt ers in t he int ernal cont rol over f inancial report ing t hat might be mat erial w eaknesses. A mat erial w eakness is a condit ion in w hich t he design or operation of one or more of t he int ernal cont rol component s does not reduce to a relatively low level t he risk t hat misst atement s in amounts t hat w ould be material in relat ion t o t he f inancial st at ement s being audit ed may occur and not be det ected w it hin a t imely period by employ ees in t he normal course of perf orming t heir assigned f unct ions. We not ed no matt ers involv ing t he int ernal cont rol over f inancial reporting and it s operation t hat w e consider t o be mat erial w eaknesses.

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Minnesota Legal Compliance(includes separate paragraphs for local government , school district s, or charter schools; use just one of t hem.)

We conduct ed our audit in accordance w it h audit ing standards generally accept ed in t he Unit ed St at es of America and t he provisions of t heMinnesot a Legal Compliance Audit Guide f or Local Government,ohe St at e A udit or pursuant t  promulgat ed by t Minn. Stat. § 6.65 . Accordingly, t he audit included such t est s of t he account ing records and such ot her audit ing procedures as w e considered necessary in t he circumst ances.

[Paragraph t o be used f or local government s.] TheMinnesot a Legal Compliance Audit Guide f or Local Governmentcontains five (six) cat egories of compliance to be t est ed: cont racting and bidding, deposit s and inv estment s, conf lict s of int erest, public indebt edness, and claims and disbursement s. Our study included all of t he list ed categories, * * except t hat w e did not t est f or compliance in (ident if y area not t est ed) because (state reasons for excluding any areas f rom audit ).

[Paragraph t o be used f or school dist rict s.] Theudit Guide Legal Compliance A Minnesot a Local Governmentf or ains six cont cat egories of compliance t o be t est ed: cont racting and bidding, deposits and inv estment s, conf lict s of int erest, public indebt edness, claims and disbursements, and uniform f inancial account ing and report ing standards for school district s. Our study included all of t he list ed cat egories, * * except t hat w e did not t est f or compliance in (ident if y area not t ested) because (stat e reasons for excluding any areas f rom audit ).

[Paragraph t o be used f or chart er schools. ] Theor Local GovernmentGuide f Legal Compliance Audit Minnesot a w oains t  cont cat egories of compliance t o be t est ed: unif orm f inancial accounting and report ing standards and chart er schools. Our st udy included t he list ed categories, * * except t hat w e did not t est f or compliance in (identif y area not t est ed) because (state reasons f or excluding any areas from audit ).

The result s of our t est s indicate t hat f or t he it ems tested, complied w it h t he mat erial terms and condit ions of applicable legal prov isions, * * except as described in t he Schedule of Findings and Questioned Cost s as items (list related f inding ref erence numbers).

This report is int ended solely f or t he inf ormation and use of t he _____________,* * * and is not int ended to be, and should not be, used by anyone ot her t han t hose specif ied part ies.

(Signat ure)

(Dat e)

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*

* *

See Statement of Posit ion 983:at es, Local Governments, and“ Audit s of St NotforProf it Organizations Receiving Federal A w ards”icationsreport modif f or required f or material inst ances of noncompliance or reportable condit ions in int ernal cont rol.

If t he rest of t he sent ence does not apply, put a period here and cont inue t o t he next paragraph.

* * * For Single Audit s, dist ribut ion should include “ f ederal aw arding agencies and passthrough entit ies.”

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