LARAMIE COUNTY COMMUNITY COLLEGE PROCEDURE

 

 

SUBJECT - Audit

REFERENCE - W.S., 16-4-121 and W.S. 21-18-204

DATE - 3/23/90 

NUMBER – 8101

 

1. Introduction

 

The Wyoming Uniform Municipal Fiscal Procedures Act (W.S. 1 C-4-121) requires an annual audit of the financial transactions of the college. The audit is to be conducted by an independent auditor in accordance with generally accepted auditing standards for state and local government units as well as the audit requirements established by the Wyoming Community College Commission. (W.S. 21-15-204)

 

2. Definitions

 

A. Prepared by Client (PBC) Workpapers

 

Prepared by Client (PBC) Workpapers are accounting schedules of fiscal transactions which are given by the auditor to the Director of Accounting Services for completion prior to commencing the audit. The schedules are reviewed with the auditors to determine that the auditors' information requests are clear and that tile return dates can he met. The PBC schedules cover all college funds as well as the minutes of college board meetings.

 

B. Audit Confirmations

 

Audit confirmations are used to confirm revenues, collateral, liabilities, and any litigation the college may be involved in.

 

1) The auditors provide confirmation forms the information to be requested, and a list of to whom confirmations are to be sent.

2) Accounting Services prepares the confirmation letters and forms.

3) Confirmations are then sent by the auditors to banks, savings and loans, the college attorney, the Wyoming Community College Commission, and the county treasurer.

 

3. Auditor Selection

 

Auditor selection is based on competitive bids to provide audit services for the college. Based on the recommendation of the president, the Board of Trustees makes the final selection subject to approval by the Wyoming Community College Commission. The auditor selected must be a member in good standing with the state association of certified public accountants and be licensed to practice in Wyoming by the State Board of Certified Public Accountants.

 

4. Audit Payment

 

It is the responsibility of the college to pay for the audit.

 

5. Schedule of Audit Events

 

The following dates are approximate. Annual firm dates are set in March each year.

 

A. March 1-7

 

The Director of Accounting Services contacts the auditors to prepare an audit work schedule. Dates are established for the preparation of the PBC Workpapers (June) and the audit (August.) The Director of Accounting Services notifies the following employees of the audit schedule and notifies them that PBC Workpapers will be reviewed with the auditors on or about June 15.

 

1) Employees of Accounting Services

2) Director of Student Records

3) Director of Financial Aid

4) Director of Computer Services

5) Bookstore Coordinator

6) Assistant to the Dean of Business Services

7) Director of Financial Planning

8) Secretary to the President

9) Foundation Executive Director

 

B. June 15

 

The Director of Accounting Services and the Director of Financial Aid meet with the auditors to receive and review the PBC Workpapers. The auditors then meet with the Bookstore Coordinator to schedule the bookstore inventory.

 

C. July 1-10

 

The auditors review the bookstore inventory schedules prepared by the bookstore.

 

The Accounting Services office completes the year end financial reports and delivers the reports to the auditors.

 

The Accounting Services office types audit confirmations and delivers them to the auditors.

 

D. August 1

 

Work space is established for the auditors and they begin their field work.

 

E. August 1-10

 

The auditors review college financial reports and backup financial information. The following employees are needed during this time and are notified by the auditors early during the field work when they are to meet with them.

 

1) Employees of Accounting Services (During the entire audit)

 

2) Director of Student Records: assists during the sampling of student registration files and enrollment rosters. (Approximately 1 day)

 

3) Director of Computer Services: reviews data processing department. (Approximately two hours)

 

4) Director of Financial Planning and the Inventory Control Technician: review the college equipment inventory. (1 day)

 

5) Assistant to the Dean of Business Services: reviews federal funds and college insurance. (1 day)

 

6) Secretary to the President: reviews the hoard minutes. ( l day)

 

F. August 1-15

 

The auditors review financial aid. The following employees are needed during this time.

 

1) Employees of Accounting Services

 

2) Director of Financial Aid and staff

 

G. September

 

A meeting is scheduled to review the audit and the audit findings. (1 day) The following employees are needed for this meeting.

 

1) President

2) Dean of Business Services

3) Director of Accounting Services

4) Director of Financial Planning

 

H. September

 

The Director of Accounting Services and the Accounting Services technicians review the audit adjustments with the auditors and post the closing entries to the college books.

 

I. October

 

The auditors meet with the Board of Trustees during their Study Session to review the audit findings.

 

J. November

 

The auditors meet with the Board of Trustees during their monthly Business Meeting to submit their audit for formal acceptance.

 

6. Audit Reporting

 

Final audits are sent to the State Examiner, Wyoming Community College Commission and the Laramie County Clerk. Public copies of the audit are on file in the office of the Director of Accounting Services.