The Audit Program - Outline for Comprehensive Annual Financial Reprot

Date Issued 5/02 OUTLINE FOR COMPREHENSIVE ANNUAL FINANCIAL REPORT New Jersey statute (N.J.S.A.18A:4-14) requires that school districts maintain bookkeeping consistent with GAAP established by the GASB. The financial reporting requirements of GAAP include the issuance of a CAFR. These financial statements are the responsibility of the board of education's management. In January 2002, the General Accounting Office (GAO) announced revisions to the auditor independence requirements under Government Auditing Standards (see the Introduction to the Audit Program). The most significant change relates to the rules associated with nonaudit and consulting services performed by those who also plan, conduct or review audits. The department recommends that district management and auditors give careful consideration to this change in the independence standard and its impact on the auditors of the district financial statements. The new audit standard is available on GAO’s web site at http://www.gao.gov/govaud/ybk01.htm. Districts should reference the NJ Department of Education (NJDOE) website at www.state.nj.us/njded/finance/fp (click on GASB 34) for selected sample statements updated for GASB 34 including the basic financial statements and budgetary comparisons. The Statistical and the Single Audit sections have not changed under GASB 34 and illustrations of these sections as well as the pre-GASB 34 model are available on the New Jersey Society of CPA ...