Firms Conduct School District Management, Accounting & Audits

Accounting firms are in the business of providing services to firms and organizations, even school districts, apparently. The Flint [Michigan] Journal reports that the firm Plante & Moran has signed a contract to perform the functions of their departed chief financial officer (CFO) until June 30, 2007, or until a new CFO is selected by the district. By the terms of the contract, Plante & Moran receive $14,000 a month, the salary and benefits for its former CFO, according to district officials.


Advertisement


Sarbanes-Oxley and State Income Taxes:
Meeting the compliance standards
without crippling your tax department

What's working for corporate tax executives

A 100-Minute Telephone Conference
with a Live Interactive Q&A Session
Tuesday, December 5, 2006
1:00-2:30 pm Eastern

Register online
More information

Mention Program Code ACCWEB.
Earn CPE while you listen.

Presented by
State Income Tax Monitor, Tax Incentives Alert and Sales & Use Tax Monitor


New York state registered public accounting firms also produce an annual document, the Reference Manual, For Audits of Financial Statements of New York State School Districts (8 or more teachers) the New York State Education Department’s Educational Management Services. School district audits must follow specific guidance of the State Education Department and the federal General Accountability Office (GAO). New York State Public Accountancy reports that school district auditors must be independent of their audit clients.

Each Board of Education must secure an annual audit by an independent auditor if $500,000 or more in federal aid is expended, according to the Reference Manual. In accordance with the Single Audit Act of 1984, independent auditors must perform their audits following generally accepted government auditing standards (GAGAS), according to New York State Public Accountancy. These standards were first published in 1972 by the GAO in a document called the Yellow Book that covers federal entities and other organizations that receive federal funds.

Some firms specialize in providing auditing and accounting services to governments. One of these firms is Allen, Green & Robinette (AGR), located in Monroe, La., with a 12-person staff. Their clients are mainly school districts and public housing authorities, according to the Journal of Accountancy.

In 1990, the Louisiana state auditor discontinued the auditing of school districts themselves and legislated that CPA firms would perform the work instead, “Because we had someone on staff with school district experience, we decided to pursue these audits for additional revenues,” according to AGR partner Tim Green.

Green continued in the Journal of Accountancy, “Public housing authorities have unique accounting procedures, so they’re not really the norm. Performing school district audits brought us more into the mainstream of governmental accounting.” Green is chairman of the American Institute of CPAs (AICPAs) government accounting and auditing committee.

Other states may have multiple districts per county to better distribute the management of districts, but Louisiana has only 13 school districts–one per parish or county. The Journal of Accountancy reports that the sizes of the school districts help make them the largest component of their practice. Five professional staff and two partners spend about 75 percent of their time servicing the school districts, while two paraprofessionals spend 50 percent of their time on these clients.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.