Literacy Coach Interview

3

TITLE

Title

First Name Last Name

College/University

The Interview

Interviewee:  School Principal

Interviewer:  Rosella Grimes

Interview Date: Monday, November 12, 2018

Location: School Office

Time: 12:01 p.m. – 12:31 p.m.

Interviewer: What would you describe as the first step when it comes to auditing and accounting practices in this school district?

Interviewee: The first thing that one is supposed to understand is that state funding is an integral source of revenue for school districts, and this is true across the country. Therefore, I would consider the funding formula of the state district as central to auditing and accounting practices. Funding formulas are complex and vary across states - having said that, the funding formula used by this state is pupil-based.

Interviewer: Why is it important to understate the funding formula used, with reference to accounting and auditing?

Interviewee: It is critical owing to the fact that understanding the primary drivers in the funding formula is imperative in designing procedures and understanding the state funding revenues. The district is not a partial recipient of state funds. It instead is a rational actor. Understanding the funding formula used speaks a great deal to the commitment of a school district in terms of education.

Interviewer: Athletics and fine arts are an integral part of this school. These are fund-driven activities. What can you say about these activities in relation to accounting and auditing?

Interviewee: First and foremost, it is imperative to understand activity funds. Activity funds are in essence generated through student fundraising efforts for clubs and for organizations. Most importantly, these funds are put into use through supervision by an oversight sponsor. With reference to accounting and auditing, the funds are not directly included in the school district’s budget. However, and this is very important, they must appear in the financial statements.

Interviewer: There are a couple of school districts that account for their food service program using an enterprise fund. Is this one of them?

Interviewee: No. As far as the food program is concerned, this district uses a special revenue fund for accounting purposes. There is a comprehensive inventory for purchased food items, donated items as well as paper goods. While the amount of inventory could be immaterial, it is in certain cases a prerequisite for the auditor to perform specific inventory procedures.

Interviewer: Finally, what would you like to say to accountants and auditors of school districts?

Interviewee: Simple, stay current on compliance matters. Regardless of the funding level, there are specific requirements of compliance tests of state laws. Regulations and laws that pertain to budgets have a direct impact of the financial statements. The importance of staying current cannot therefore be underestimated.

Interviewer: Thank you for your time.

Interviewee: You are welcome.