N.J. Admin. Code § 6A:23A-18.10

Current through Register Vol. 56, No. 17, September 3, 2024

Section 6A:23A-18.10 - Audit requirements

(a) Regardless of the APSSD's fiscal year, each APSSD shall submit to the Commissioner, or his or her designee, audited financial statements based on the July 1 to June 30 school year. The audited financial statements shall be postmarked on or before November 1, or the following business day if November 1 falls on a weekend or holiday.

1. The APSSD shall engage to conduct the annual audit only an independent registered municipal accountant of New Jersey or an independent certified public accountant of New Jersey who holds a valid registration license as a public school accountant of New Jersey.

2. The APSSD shall ensure the auditor's independent status in accordance with the Code of Professional Conduct and General Principles and Responsibilities issued by, and available from, the American Institute of Certified Public Accountants (AICPA).

3. Additionally, upon review by the Department, an auditor shall not be considered independent if he or she may have been influenced by other parties, including, but not limited to, APSSD directors or other staff, or by conflicting interests such as if the independent auditor or members of his or her firm are engaged to perform services other than the year-end audit and tax return functions for the APSSD. If the Department determines an independent auditor engaged to conduct the APSSD's annual audit has not acted independently, the Department may take any and all appropriate action.

(b) The audit shall follow generally accepted auditing standards (GAAS), as set forth by the Auditing Standards Board (ASB) in the Codification of Statements on Auditing Standards, 2015, published for the American Institute of Certified Public Accountants, (1211 Avenue of the Americas, NYC, NY 10036-8775), incorporated herein by reference, as amended and supplemented, and when applicable; the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audit issued by the Federal Office of Management and Budget; or NJOMB Circular Letter 15-08, as amended and supplemented. The APSSD shall ensure the use of the auditing guidelines as published and distributed by the Commissioner, or his or her designee.

1. The APSSD shall ensure the audit includes basic financial statements, required supplementary information, schedules, and narrative explanations.

(c) The APSSD shall ensure the audited financial statements reflect the certified actual cost(s) per student as determined by an independent auditor and final tuition rate(s) charged at the end of the school year as determined by the APSSD's management.

(d) The APSSD management representative(s) shall discuss with the auditor the results of the auditor's determination of the certified actual cost per student for management to determine the final tuition rate charged as a result of the audit.

1. The APSSD shall charge as the final tuition rate an amount equal to or less than the certified actual cost per student.

2. The APSSD shall ensure the audit report contains a letter signed by both the independent auditor and an authorized school representative indicating both parties have met and discussed the audit, and the determination of the final tuition rate charged was a management decision.

(e) Within 60 days of receipt of the year-end audit, APSSD management shall develop a corrective action plan pursuant to this subchapter in response to recommendations contained in the year-end audit, and shall submit the corrective action plan to the Commissioner, or his or her designee, for review and approval. The corrective action plan shall be on a form prescribed by the Commissioner, or his or her designee.

(f) The APSSD shall not amend the final tuition rate charged after approval by the Commissioner, or his or her designee.

(g) Any adjustment(s) that results from the approval following a compliance review of the audited financial statements performed by the Commissioner, or his or her designee, and that is in excess of $ 10.00 per sending district board of education shall be paid in accordance with N.J.A.C. 6A:23A-18.3(l) and (m).

(h) An APSSD that files an audit postmarked after November 1 shall cause the tentative tuition rate per student for the ensuing school year to be calculated based upon the audited actual cost per student for the school year two years prior to the current school year, and the provisions of N.J.A.C. 6A:23A-18.3(j) shall not apply.

(i) Failure to comply with this section may result in the Commissioner, or his or her designee, placing the APSSD on conditional approval status.

(j) Upon request, the APSSD shall submit to the Department a copy of the APSSD corporation's agency-wide audited financial statements.

N.J. Admin. Code § 6A:23A-18.10

Amended by 49 N.J.R. 1855(a), effective 7/3/2017