Section 92-1-003 - Audit RequirementsThe audit must be conducted in accordance with Auditing Standards Generally Accepted in the United States of America and the standards for financial and compliance audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Appendix C, a copy of which is on file at the Nebraska Department of Education's central office in Lincoln
003.01 If a separate management letter is referenced as a part of the Report on the Internal Control and/or the Report on Compliance with laws and regulations it shall be filed as part of the financial (audit) report. 003.02 All school districts that expend $750,000 or more in a fiscal year in federal awards (including the value of commodities provided by the U.S. Department of Agriculture) are also required to have an audit conducted and reported in accordance with 2 CFR Part 200 Subpart F - Audit Requirements (Appendix A, a copy of which is on file at the Nebraska Department of Education's central office in Lincoln), and the American Institute of Certified Public Accountants Audit and Accounting Guide entitled Audits of State and Local Governmental Units (Appendix B, a copy of which is on file at the Nebraska Department of Education's central office in Lincoln).003.03 The tests for compliance required for the audit includes those necessary to conform to current Auditing Standards Generally Accepted in the United States of America and Government Auditing Standards (Appendix C, a copy of which is on file at the Nebraska Department of Education's central office in Lincoln). The audit includes tests for compliance with the calculation of Average Daily Membership reported on the Annual Statistical Summary Report as specified in 92 NAC 2, requirements of the Nebraska Budget Act (commencing with Section 13-501 R.R.S.), and the Tax Equity and Educational Opportunities Support Act (commencing with Section 79-1001 R.R.S.) for school districts. 003.03A All compliance deviations related to Average Daily Attendance and Average Daily Membership (as those two elements are described in Section 006 of 92 NAC 2), the Nebraska Budget Act and the Tax Equity and Educational Opportunities Support Act (TEEOSA) must be included in the report on compliance required by Government Auditing Standards (Appendix C, a copy of which is on file at the Nebraska Department of Education's central office in Lincoln) or a letter to management (the School District Board of Education) and must be addressed by the school district per Section 003.05 of this Chapter.003.03BAverage Daily Attendance (ADA) and Average Daily Membership (ADM) Testing Requirements for School Districts: Written documentation of the testing done of the ADA and ADM must be completed and submitted with all school district audit reports. The documentation must state confirmation of the following: 003.03B1 Documentation of the school district's policies and procedures for collecting student membership and attendance data.003.03B2 The school district is following its policies and procedures for collecting student census data.003.03B3 Attendance at the school district is collected at least daily and calculated to the nearest hundredth of a day.003.03B4 The school district maintains a cumulative attendance and membership record of each student.003.03B5 The cumulative attendance and membership records contain the date of enrollment, number of days or partial days in attendance and absent during each school year enrolled, and the date of withdrawal or graduation.003.03B6 The student attendance reported in the Nebraska Department of Education's (NDE) approved data collection system (e.g. ADVISER) have been traced back to the school district's student information system for the school year.003.03C A statement must be written for the following: A sample pool of students attendance records must be tested for the school year and must be traced to the students' enrollment files to verify that the sample students' are enrolled as students' of the school district for the dates claimed in the attendance record. 003.03C1 If applicable: Reportable instances of noncompliance were included in the Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards.003.03D A statement must be written for the following: A sample of expense allocations were tested verifying appropriate allocating to the school building level. 003.03D1 If applicable: Reportable instances of noncompliance were included in the Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements performed in accordance with Government Auditing Standards. 003.04Financial (Audit) Report Format. The financial reports and schedules should include: 003.04A A report cover, index or table of contents, independent auditors' reports (financial, compliance and internal control), Management's Discussion and Analysis (MD&A), government-wide and fund financial statements (including notes thereto), other required supplementary information (RSI), other supplemental schedules formatted as prescribed by the NDE and any additional information as may be required by the Nebraska Revised Statutes and reporting standards as may be appropriate to the cash or modified accrual basis. If the financial statements are prepared on a basis of accounting other than the cash basis, the financial report must include supplementary schedules of cash receipts, disbursements and fund balances of all funds maintained by the district, which schedules shall be reported on as audited accompanying information. 003.04B The financial (audit report) shall be on letter-size pages.003.05 All school districts shall file with the Commissioner of Education on or before November 5 a copy of the financial (audit) report which includes the ADA/ADM testing letter. All school districts shall file with the Commissioner of Education on or before January 31, a copy of the auditor's letter to management, together with the district's responses, and any responses to compliance issues resulting from the audit. The financial (audit) report for all school districts must also be filed with the Auditor of Public Accounts on or before November 5.003.06 If a school district that was in existence any time during the fiscal year dissolves and merges with one or more school districts prior to the completion of an independent financial (audit) report then:003.06A The school district that receives the largest portion of the dissolved district's valuation is responsible, in cooperation with the dissolving district's Board of Education, for obtaining and filing financial (audit) report for the dissolved district.003.06B The dissolved district's financial (audit) report shall cover the entire fiscal year (September 1 through August 31).92 Neb. Admin. Code, ch. 1, § 003
Amended effective 6/6/2017.Amended effective 11/1/2021