Homework (Q acct)

Review: WEEK 2 RESOURCES

Return to  http://www.ofm.wa.gov/cafr  to explore your CAFR and review the introductory section..

The items you will find are:

Introductory section

· Letter of Transmittal

· Certificate of Achievement for Excellence in Financial Reporting

· Statewide Elected Officials as of June 30, 2015

· 2015 State Organization Chart

Most government entities at the state and local level use a June 30 Fiscal Year End (FYE). This compares to the Federal Government which uses a September 30 FYE. As you proceed with your review you should notice the fiscal year end and the auditors’ report as the CAFR is an audited financial statement package.

Budgeting and Control

Chapter 20 - Internal Control and Auditing  http://www.ofm.wa.gov/policy/20.htm

When you arrive at the above web site, first review the structure of the material, noting the sections and description. Then open the entire Chapter 20 (PDF Version). You now have a 20 page document, with the state seal. Chapter 20 - Internal Control and Auditing ... 20.10.10, The purpose of this chapter. On page 3 you learn the purpose of the chapter. As you review the following pages you will see the relationship of the document to the auditing function. We will cover the concept of the single audit for entities receiving federal funding. For our example government entity, return to the web page  http://www.ofm.wa.gov/cafr/ .

The link in the far right column “Single Audit” leads to the web page  http://www.ofm.wa.gov/singleaudit/default.asp . As you review this web page you learn more about the Single Audit, with its three sections. To access the most recent Federal Circulars and information about the Single Audit explore the web page and a link to the Federal Government web page for the A-133. The process of the Single Audit seeks to explore and report on Government Fund Management issues for the grantee (who receives the funds). The grantor (who issues the funds) requires the Single Audit for grantees who receive Federal funds. We will return to the topic of the Single Audit in week 7 but as you explore information for the Government Entity you select for your CAFR project, and your not for profit entity for your NFP project, access the single audit as may be presented. Smaller not for profit entities may not have a single audit. Many government entities will present their single audit as you see at our sample CAFR page  http://www.ofm.wa.gov/cafr .

To learn more about the management of Federal funds, access information on the Single Audit at Federal Financial Management Circulars at  https://www.whitehouse.gov/omb/information-for-agencies/circulars/#financial .

Journal Entries:

To explore the financial manual for a government entity, we will study the following document: at the web site  https://www.k12.wa.us/policy-funding/school-apportionment/instructions-and-tools/accounting-manual . You will open a 594 page pdf file. Turn to the Table of Contents to begin our study of financial transactions, recording and reporting for a government entity.

Review Chapter 1 – Principles of Accounting: Explains funds, financial statements and recording process.

Beginning with readings as of Chapter 2, notice forms and references to account numbers. Account numbers can be very long and are referred to as Object Codes.

Review Chapter 2 – Budgeting

Review Chapter 3 – Accounting Guidelines: includes concepts of internal control as they apply to a government entity of this type.

Review Chapter 7 – General Journal Entries: provides example journal entries for our course, from recording the budget through transactions during the year.

Source:  https://www.k12.wa.us/policy-funding/school-apportionment/instructions-and-tools/accounting-manual