School District Update with Eric Formberg

Join expert Eric Formberg to get updated on the recent changes in school district accounting, auditing, reporting, the single audit and implications from changes in State and Federal funding and oversight. The session will provide both a solid foundation for auditing school districts and a focus on key factors to consider in planning and conducting school audits in 2020. We will review the implications of the significant changes in the Compliance Supplement on school single audit testing and reporting requirements as well as school grants management. In addition, understanding implications from changes in school funding and operations will equip participants to better plan, perform audit tests and serve Michigan schools. The session will also focus on GASB 84 and its implications for school accounting, reporting, certain legal questions, and related audit implications, along with continued focus on GASB 75 (OPEB) and GASB 68 (Pension), including the accounting requirements, ORS tools, and related audit requirements for school districts. Discussions will equip participants to better apply the AICPA Governmental Accounting and Auditing Guide and Single Audit Guide to Michigan School audits. Further we will integrate significant school funding changes impacting school districts in 2020 and 2021. Schools in Michigan face continuing challenges from school funding changes, retirement costs, compensation pressures, healthcare requirements, Early Warning requirements, fund deficits, deficit elimination plans, school closures, student performance requirements, and infrastructure improvement needs. All these issues impact audit risk, audit procedures, reporting requirements, and an increased risk of misstatement due to error or fraud. Auditors must understand how the Uniform Guidance applies to Michigan schools. Districts must consider MDE grants management guidance and requirements outlined in the Michigan School Audit Manual. Auditor tests must consider these requirements and framework changes. The 2020 Compliance Supplement, with its significant changes in audit scope, along with the updated School Audit Manual must be incorporated into the audit effort. With increased client and auditor demands as well as state oversight, it is even more important to effectively plan, execute and conclude the audit in a cost-effective manner.

Basic Course Information

• GASB 84 and its implications for school administration, and reporting of student activity and private purpose funds and related audit implications
• Continued focus on GASB 75 and GASB 68 application issues and lessons learned
• GASB updates focusing on new standards impacting K12
• Review Governor initiatives and Legislative responses
• Status of school funding 
• Impact of legislative changes to the pension system and in school funding
• Continued early warning, and the MDE partnership model
• Review of changes to State Aid Status Report
• Review of new special ed reporting requirements
• Review of the state aid act and "hot topics" in school finance
• Using the State of Michigan Accounting Manual for Schools (Bulletin 1022)
• Status of ASB agenda items and potential impact on school audits
• The 2020 compliance supplement and its substantial implications on school audits
• Uniform Guidance implications to schools and school federal program audits, including procurement testing
• NEW Data Collection Form preparation and MDE report submission process
• Changes to Michigan School Auditing Manual
• Understanding new MDE operating structure
• Audit strategies for testing school financial statements
• Review of charter school audit, reporting and operational issues
• Key resources