N.H. Admin. Code § Ed 1129.18

Current through Register No. 45, November 7, 2024

Section Ed 1129.18 - Audit Requirements

(a) Audits shall include an examination of the systems of internal control, systems established to insure compliance with laws and rules affecting the expenditure of LEA funds, and financial transactions and accounts.

(b) The examinations required by (b), above, shall be used to determine whether:

(1) There is effective control over and proper accounting for revenues, expenses, assets and liabilities;

(2) The financial statements are presented fairly in accordance with generally accepted accounting principles;

(3) The department financial reports contain accurate and reliable financial data; and

(4) LEA funds are being expended in accordance with Ed 1129.

(c) In order to accomplish the above purposes cited in (c) above, a representative number of charges to special education programs shall be tested to determine whether the charges:

(1) Are required for the proper administration of the program;

(2) Were given consistent accounting treatment and applied uniformly to all activities of the organization;

(3) Were net of applicable credits;

(4) Did not include costs properly chargeable to the organization's other programs;

(5) Were properly recorded with the correct amount and date and supported by source documentation; and

(6) Were allocated equitably to benefiting activities, including non-special education activities.

(d) Audits shall be made annually and include:

(1) Financial statements, including footnotes, of the organization;

(2) The auditors' comments on the financial statements which shall:

a. Identify the statements examined and the period covered;

b. Identify the various special education programs for which a rate was set and the amounts of LEA funds received;

c. State that the audit was done in accordance with Ed 1129.18;

d. Express an opinion as to whether the financial statements are fairly presented in accordance with generally accepted accounting principles, but if an unqualified opinion cannot be expressed then the nature of the qualification shall be stated; and

e. Comment on the accuracy and completeness of the department financial reports, including an expression of negative assurance with respect to compliance with Ed 1129.

(e) Work papers and reports shall be retained for a minimum of 3 years from the date of the audit report unless the auditor is notified in writing by the department of the need to extend the retention period. The work papers shall be made available upon request to the department.

N.H. Admin. Code § Ed 1129.18

(see Revision Note at chapter heading for Ed 1100) #9197, eff 6-28-08

Amended by Volume XXXVII Number 15, Filed April 13, 2017, Proposed by #12141, Effective 3/24/2017, Expires 3/24/2027.