ACCOUNTING CHANGES

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ACCOUNTING CHANGES

• Cindy Naber
• 126 East 8th
• York, NE 68467
• Tele 402-362-4481
• Fax [phone]
• Email cindyn_at_cnaber.net

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SAS No 112

• What is it?
• A. sarcastic remarks
• B. statement on auditing standards
• C. comfortable shoes

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SAS 112

• Effective with audits ending on or after December
  15, 2006
• Provides guidance to help practitioners better
  understand and implement requirements

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Main clarifications

• 1. Internal control
• 2. Clients knowledge of financial statements
• 3. Findings

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Internal control

• Risk assessment policy
• Ethics
• Segregation of duties

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Financial statements

• Clients ability to prepare GAAP financial
  statements
• Disclosure checklist
• Can auditor prepare financial statements?

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Findings

• Control deficiencies
• Significant deficiencies
• Material weakness

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Responses

• The management of the Housing Authority has
  reviewed and discussed the authoritys
  responsibilities over internal controls. As a
  result of the this review, the management has
  considered the cost effectiveness of additional
  segregation of duties for compliance of the
  application of generally accepted accounting
  principles. Due to the limitations of resources
  available at the current time, it has been
  determined that it is not feasible to increase
  the segregation of duties.

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Responses

• Because of the nature and size of the Housing
  Authority controls are limited in the application
  of generally accepted accounting principles, the
  authority has hired a fee accountant who
  specializes in housing authorities to prepare our
  financial statements. Adjustments made during
  the audit were discussed with the fee accountant.

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Fiscal Year End Information

• Accrued payroll
• Accrued absences
• Accrued interest
• Accounts payable
• Drawdowns
• Units leased/available

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New Accounts

• Contract costs
• 4430-misc contracts
• 4431-garbage
• 4432-heating cooling
• 4433-snow removal
• 4434-elevator
• 4435-landscape/grounds

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New Accounts

• 4436-unit turn around
• 4437-electrical
• 4438-plumbing
• 4439-extermination
• 4440-janitorial
• 4441-routine

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New Accounts

• Insurance
• Property
• Liability
• Workers compensation
• other

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New accounts

• Extraordinary- is the expense unusual AND
  infrequent?
• Special- is the expense unusual OR infrequent?
• Capitalize Casualty loss

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Financial info supporting documentation

• Bank statements
• Financial statements
• Check vouchers w/ documentation
• CF file
• Insurance file
• Policies
• Tenant files

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• Board meeting minutes resolutions
• Collateral pledge
• Payroll tax file
• W-2s and 1099
• Donuts

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THE END

• QUESTIONS