WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTINGInvestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor

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WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTINGInvestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor

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NORFOLK PUBLIC SCHOOLSResults of June 30, 2019Financial Statement Audit

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Agenda

• Our audit approach• Audit results• Required communications

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Our Audit Approach• Integrated Team

– Audit Team with Education Experience – IT Specialists

• Approach – Risk Based with emphasis on assessment of key internal controls• Communication – Frequent, including regular formal status meetings, and

information communications

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• Auditors’ Opinion on Financial Statements – Unmodified

• Report on Internal Control Over Financial Reporting and oncompliance and Other Matters Based on an Audit ofFinancial Statements Performed in Accordance withGovernment Auditing Standards – No material weaknessesor significant deficiencies noted

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CAFR Audit Results

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Single Audit• Independent Auditors’ Report on Compliance for Each Major Federal

Program, Report on Internal Control, and Report on the Schedule ofExpenditures of Federal Awards Required by the Uniform Guidance

• In accordance with Uniform Guidance• No compliance findings• Programs Tested

– Child Nutrition Cluster– Impact Aid

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School Activity Funds

• Audit performed this year

• All Schools Included

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School Activity Funds- Findings• Completion of SAF accounting manual• Invoices not paid timely• Receipts not deposited timely• Disbursement voucher not signed or missing information• Incomplete deposit support• Bank reconciliations not completed timely

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• Auditors’ Responsibility Under Generally Accepted Auditing Standards:– The financial statements are the responsibility of management. Our audit was

performed for the purpose of forming opinions as to whether the FinancialStatements have been prepared in accordance with GAAP.

• Qualitative Aspects of Accounting Practices– Management is responsible for the selection and use of appropriate

accounting policies. Significant accounting policies are disclosed in theSummary of Significant Accounting Policies in Note 1 of the FinancialStatements.

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Required Communications

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• The preparation of the Financial Statements requires that certain estimates andjudgments be made by management. These judgments and estimates include:

– GASB 68 net pension liability and disclosures– GASB 75 net OPEB liability and disclosures– Depreciable lives of capital assets– Liability for incurred but not recorded (IBNR) claims for workers compensation

and self insured-health insurance– Liability for compensated absences

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Required Communications (continued)

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• We concluded that management has a reasonable basis for significant judgments and estimates that impact the Financial Statements.

• No sensitive Financial Statement disclosures.

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Required Communications (continued)

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• Difficulties Encountered in Performing the Audit– No significant difficulties were encountered during the audit.

• Disagreements with Management– There were no disagreements with management on financial accounting and reporting

matters, auditing procedures, or other matters.• Representations from Management

– The representation letter was required of management.• Consultations with Other Accountants

– We were informed by management that they made no consultations on the applicationsof GAAP and GAAS.

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Required Communications (continued)

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• Significant Issues Discussed with Management Prior to Retention– There were no significant issues discussed with management prior to

retention as auditors.• Other Significant Findings or Issues

– There were no additional findings or issues not previously discussed.• Other Information in Documents Containing Audited Financial Statements

– We do not express an opinion on required supplemental information orsupplemental information.

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Required Communications (continued)

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Upcoming GASB Pronouncements (cont.)Statement No. 84 Fiduciary ActivitiesThe objective of this Statement is to improve guidance regarding the identification of fiduciary activitiesfor accounting and financial reporting purposes and how those activities should be reported. Therequirements of this Statement are effective for reporting periods beginning after December 15, 2018.

Statement No. 87 LeasesThe objective of this Statement is to better meet the informational needs of financial statement usersby improving accounting and financial reporting for leases by governments. The requirements of thisStatement are effective for reporting periods beginning after December 15, 2019.

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Upcoming GASB Pronouncements (cont.)Statement No. 84 Fiduciary ActivitiesThe objective of this Statement is to improve guidance regarding the identification of fiduciary activitiesfor accounting and financial reporting purposes and how those activities should be reported. Therequirements of this Statement are effective for reporting periods beginning after December 15, 2018.

Statement No. 87 LeasesThe objective of this Statement is to better meet the informational needs of financial statement usersby improving accounting and financial reporting for leases by governments. The requirements of thisStatement are effective for reporting periods beginning after December 15, 2019.

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CLAconnect.com

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facebook.com/cliftonlarsonallen

linkedin.com/company/cliftonlarsonallen

Greg Bussink, CPAPrincipalGreg.Bussink@CLAconnect.com

Aires Coleman, CPAEngagement DirectorAires.Coleman@CLAconnect.com

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