As this unusual school year draws to a close, you’re probably already thinking about how preparing for your district’s financial audit might be different this year. Here are five tips to make the process run more smoothly even if you do hit a few bumps in the road.
Tip #1: Review or create a year-end checklist
Your year end checklist should list items to prepare or gather for the audit, including the date each item needs to be completed and the person responsible for the task. The checklist should include:
- A list of balance sheet accounts that will need to be reconciled at year-end, such as cash, investments, property taxes receivable, due from/to state, due from/to other funds, accrued payroll, and accounts payable.
- Entries only done at year end. Reviewing the list of closing entries from the prior year will help remind you and others at the District about what needs to be completed at year end.
- Significant changes. Examples are account balances that have changed significantly compared to prior year and items that were new in 2021, such as agreements entered into, complex transactions, changes to payroll or purchasing internal control processes, or new or significant changes to grant dollars received
Tip #2: Train non-accounting staff to meet cut-off dates
In order for the business office to close the year efficiently, campus and departmental staff must do their part. Having a call with non-accounting team members to make sure they know what they need to do will help ensure that they understand the requirements and the deadlines.
Tip #3: Keep track of your progress to avoid delays
Establish a way to track the completion of what your auditors will need when the audit starts and check on it weekly until the audit starts. There are a number of ways to manage these documents, from manual binders to a shared drive to a secure cloud-based site like Dropbox. Select the method that works best for you and then follow through with tracking.
