Policy No. 6200 Accounting, Auditing, & Financial Reporting

Accounting, Auditing and Financial Reporting

I. Accounting

1. The Board delegates to the business administrator responsibility for the proper collection, expenditure, accounting, and reporting of all public funds controlled by the district.
2. The Board delegates to the business administrator the authority to develop and maintain a comprehensive accounting practices manual to be used as a basis of standardized accounting throughout the district.
3. The district shall adhere to all applicable GASB standards and GAAP principles in its accounting practices.
4. The district shall use a modified accrual basis of accounting.
5. The district shall maintain an accounting system capable of providing accurate and timely records of financial transactions.
6. The district shall maintain an account structure in accordance with the state chart of accounts published annually by USBE. Accounts will be set up in such a manner that they are easily reviewed and audited.
7. Time and effort records will be maintained semi-annually for all federal programs requiring such documentation. Time and effort records may be maintained more frequently if required by a specific program.
8. Adjusting journal entries shall be allowed both during the fiscal year and at the end of the fiscal year.
9. Accounting transactions shall be recorded when they occur.
10. All program-specific revenues and expenditures shall be recorded in the proper program. Programs shall be reconciled annually.

II. Auditing

1. All financial transactions and records are subject to and shall be made available for internal and external audits by appropriate federal, state, or district personnel.
2. The district shall participate in a comprehensive annual financial audit performed by an independent, external audit firm.
3. As required by Utah code: 53G-7-401(2), the district shall maintain an internal auditor. The internal auditor works under the direction of the audit committee.

III. Audit Committee

1. 1. In accordance with industry best practices and Utah code: 53G-7-402, the district shall maintain an audit committee to include three of the seven current school board members. Up to two community members with expertise in the areas of finance, auditing, and accounting may be invited to participate on the committee.
   2. Administrators, including the superintendent and business administrator, may not serve as audit committee members, but may be invited to participate in committee meetings.
   3. The audit committee provides independent review and oversight of the district’s financial reporting processes, internal controls and independent auditors. The audit committee also provides a forum separate from administration in which auditors and other interested parties can candidly discuss financial concerns.
   4. A Board member shall serve as chair of the audit committee and is responsible to organize the work of the committee.
   5. The audit committee is responsible for procuring both external and internal audit services according to state procurement guidelines.

IV. Financial Reporting

1. The district shall publish and make available periodic financial reports as required by the federal or state government.
2. The district shall conduct its financial reporting in accordance with GAAP principles.
3. The district shall report financial data and information consistent with budgeting, accounting and auditing standards provided annually by the Utah State Board of Education.

Legal References:

§53G-7-402: Public School Internal Audits

Synopsis:

Approved by the Board of Education: March 16, 2023. Last Reviewed: March 2, 2023

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