a.
List the federal departments that have sponsored the federal programs, as per the OMB Compliance Supplement referred to in the website mentioned in the question.
b.
Indicate whether any of the programs listed are part of the same cluster, under single audit.
c.
Indicate whether any of the federal programs could be classified as Type A programs, and indicate whether any of the programs could be exempted from being assessed under the risk-based approach.
d.
Identify the programs that would be selected for audit, and mention the reason.
e.
Explain whether or not the selection of programs for audit would change, if the not-for-profit organization has received unmodified opinion for the last two years and the Head Start program was selected for audit; and indicate the programs to be selected with reason.
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Accounting For Governmental & Nonprofit Entities
- To what extent do the unique features of government accounting make a difference on the financial statements? The transactions that follow relate to the Danville County Comptroller’s Department over a two-year period. Year 1• The county appropriated $12,000 for employee education and training.• The department signed contracts with outside consultants to conduct accounting and auditing workshops. The total cost was $10,000.• The consultants conducted the workshops and were paid $10,000.• The department ordered books and training materials, which it estimated would cost $1,800. As of year-end, the materials had not been received. Year 2• The county appropriated $13,500 for employee education and training.• The department received and paid for the books and training materials that it ordered the previous year. Actual cost was only $1,700. The county’s accounting policies require that the books and training materials be charged as an expenditure when they are received (as opposed to being…arrow_forwardFor each of the following events or transactions, prepare the necessacry journal entries and identify the fund or funds that will be affected. 1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance 2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month. 3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center. 4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is associated with the town. 5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund. 6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to…arrow_forwardFor each of the following events or transactions, prepare the necessacry journal entries and identify the fund or funds that will be affected. 1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance 2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month. 3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center. 4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is associated with the town. 5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund. 6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to…arrow_forward
- Ginnian and Fitch, a regional accounting firm, performs yearly audits on a number of different for-profit and not-for-profit entities. Two years ago, Luisa Mellina, Ginnians partner in charge of operations, became concerned about the amount of audit time required by not-for-profit entities. As a result, she instituted a series of training programs focusing on the auditing of not-forprofit entities. Now, she would like to see if the training seemed to work. So, she ran a multiple regression on 22 months of data for Ginnian for three variables: the total monthly cost of audit professional time, the number of not-for-profit audits, and the hours of training in the audit of not-for-profit entities. The following printout was obtained: Required: 1. Write out the cost equation for Ginnians audit professional time. 2. If Ginnian expects to have 9 audits of not-for-profits next month and expects that audit professionals will have a total of 130 hours of not-for-profit training, what is the anticipated cost of professional time? 3. Are the hours spent auditing not-for-profit entities positively or negatively correlated with audit professional costs? Is percentage of experienced team members positively or negatively correlated with audit professional cost? 4. What does R2 mean in this equation? Overall, what is your evaluation of the cost equation that was developed for the cost of audit professionals?arrow_forwardAn unqualified opinion on the financial statements of a local government means that all statements in the comprehensive annual financial report (CAFR) have been audited and conform with GAAP." Do you agree or disagree? Why? Describe the difficulty in comparing the financial performance of a not-for-profit organization to other similar organizations. What benchmarks are available to assist in this task? Describe the treatment of a not-for-profit, nongovernmental foundation that is related to a public university under GASB standards. What are the benefits to a state or local government of establishing an audit committee?arrow_forwardIS IT PART OF THE COUNTY? Harland County is in a financially distressed area within the state of Missouri. In hopes of enticing business to the county, the state legislature appropriates $3 million to start an industrial development commission. The federal government provides an additional $1 million. The state appoints 15 individuals to a board to oversee the operations of this commission. Harland County officials name five additional members. The commission begins operations by raising funds from local citizens and businesses. Over the past 12 months, it received $700,000 in donations and pledges. The county provides clerical assistance and allows the commission to use one wing of a county office building for its headquarters. The Harland County government must approve the commission's annual operating budget. The county will also cover any deficits that might occur.During the current period, the commission spent $2.4 million and achieves notable success. Several large companies…arrow_forward
- The Office of the Auditor General is mandated to carry out audits of all public institutions in Jamaica. It has been observed that the same observations and recommendations are made each year in the Auditor General’s Reports concerning increased misuse and misapplication of public funds. Following the establishment of new parish councils in some parishes around the country four years ago, there is concern that the trend of misuse and misapplication of public funds may be experienced in these newly established councils just like is the case with the existing councils. The Ministry responsible for local government has decided that consultants should be engaged to hold workshops with the controlling officers of the newly established councils on the importance of transparency and accountability in the use of public funds and the importance of internal controls systems. You work for a consultancy firm that has been engaged to run these workshops and all the new districts around the…arrow_forwardThe Office of the Auditor General is mandated to carry out audits of all public institutions in Jamaica. It has been observed that the same observations and recommendations are made each year in the Auditor General’s Reports concerning increased misuse and misapplication of public funds. Following the establishment of new parish councils in some parishes around the country four years ago, there is concern that the trend of misuse and misapplication of public funds may be experienced in these newly established councils just like is the case with the existing councils. The Ministry responsible for local government has decided that consultants should be engaged to hold workshops with the controlling officers of the newly established councils on the importance of transparency and accountability in the use of public funds and the importance of internal controls systems. You work for a consultancy firm that has been engaged to run these workshops and all the new districts around the country.…arrow_forwardThe Office of the Auditor General is mandated to carry out audits of all public institutions in Jamaica. It has been observed that the same observations and recommendations are made each year in the Auditor General’s Reports concerning increased misuse and misapplication of public funds. Following the establishment of new parish councils in some parishes around the country four years ago, there is concern that the trend of misuse and misapplication of public funds may be experienced in these newly established councils just like is the case with the existing councils. The Ministry responsible for local government has decided that consultants should be engaged to hold workshops with the controlling officers of the newly established councils on the importance of transparency and accountability in the use of public funds and the importance of internal controls systems. You work for a consultancy firm that has been engaged to run these workshops and all the new districts around the…arrow_forward
- The Office of the Auditor General is mandated to conduct audits of all public institutions inJamaica. It has been observed that the same observations and recommendations weremade in the last five years in the Auditor General’s Reports concerning increased misuseand misapplication of public funds.The Ministry responsible for local government has decided to engage a consultants firmto review the transparency and accountability of the public funds by the council.The lead consultant in your firm has asked you to conduct this review. The following werefound during your review:• The main source of funds for the Council are the grants received from the centralgovernment and levies from local businesses operating in the parish.• The Council maintains financial records and prepares financial statements annuallywhich are subject to audit by the Office of the Auditor General.• The Council received a grant of US$20 million for the construction of ten communitycenters, one each in the ten…arrow_forwardThe Office of the Auditor General is mandated to conduct audits of all public institutions in Jamaica. It has been observed that the same observations and recommendations are made each year in the Auditor General’s Reports concerning increased misuse and misapplication of public funds. Following the establishment of new parish councils in some parishes around the country four years ago, there is concern that the trend of misuse and misapplication of public funds may be experienced in these newly established councils just like is the case with the existing councils. The Ministry responsible for local government has decided that consultants should be engaged to hold workshops with the controlling officers of the newly established councils on the importance of transparency and accountability in the use of public funds and the importance of internal controls systems. You work for a consultancy firm that has been engaged to run these workshops and all the new districts around the country.…arrow_forwardA government health care district incorporates its budget in its accounting system and encumbers all purchase orders and contracts. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 and expenditures of $5,550 were appropriated. During the year, the following transactions incurred: the government health care district collected $5,500 in fees, grants, taxes, and other revenues It ordered goods and services for $3,000. it received and paid for $2,800 of goods and services that had been previously encumbered. It expects to receive the remaining $200 in the following year. It incurred $2500 in other expenditures for goods and services that had not been encumbered. What is total fund balance at year end? $500 $300 $200 None of abovearrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage