Manitoba
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Manitoba Education

Summary Budgeting and Reporting

Specified Audit Procedures - Limited

For the Year Ended March 31, 2009

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General Procedures

  1. Follow up on the status of any major issues noted during the June 30, 2008 audit. Discuss with school division management and evaluate the possible effect on the March 31, 2009 financial information.

  2. Discuss with school division management if there were any significant changes to the control environment or system of internal controls subsequent to the June 30, 2008 audit.

  3. Request information from management regarding the following:
    • The receipt of significant donated goods or services,
    • Details of school closures, and
    • The nature of any contingencies

  4. Review the minutes of the Board of Trustees for meetings subsequent to the report date for the June 30, 2008 audit. Discuss any significant issues with management and their potential impact on the March 31, 2009 financial information.

  5. Review legal expenses exceeding $1,000 incurred subsequent to the report date for the June 30, 2008 audit. Review the applicable invoices with school division management for any potential legal contingencies or other issues.

  6. Enquire of management about the existence of any unreported contingencies, commitments and related party transactions not previously disclosed in the June 30, 2008 audited financial statements.

  7. Obtain an updated legal representation letter for any significant legal contingencies that were previously accrued or disclosed in the June 30, 2008 audited financial statements, as well as any new legal claims for which legal representation has been sought.

  8. Enquire of management about any significant subsequent events that would require disclosure or accrual in the March 31, 2009 financial information.

  9. Discuss the risk of fraud with management and consider the risk of fraud when planning and executing the specified audit procedures.

  10. Obtain a representation letter signed by the Secretary Treasurer and other senior management. The letter should include representations that:
    • the March 31, 2009, along with the March 31, 2008 comparative figures are materially correct
    • management understands that the March 31, 2009 financial information, including the comparative figures, will be included in the Consolidated Financial Statement for the Province of Manitoba
    • all representations made to the auditors were correct
    • management is not aware of any material subsequent events not previously disclosed

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Cash Procedures

  1. Obtain the bank reconciliation for March 31, 2009. Agree the balance per the bank reconciliation to the bank statement. Review the reconciliation for clerical accuracy. Agree individual reconciling items > $100,000 to supporting documentation (Cancelled cheque, deposit book, etc.).

  2. Review individual bank transfers > $100,000 occurring 3 business days prior to and subsequent to March 31, 2009. Ensure that the transfers are recorded in the proper fiscal period.

  3. Ensure that all cash balances in foreign currencies are translated into Canadian dollars using the exchange rates at March 31, 2009.

  4. Discuss restrictions on the use of cash with management. Review bank confirmations and minutes for potential disclosure of restrictions on the March 31, 2009 cash balance.

  5. For material cash balances with restrictions from external parties such as parent action committees and booster clubs (i.e. school funds), ensure than the unspent restricted funds have been recorded as a liability.

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Temporary Investments

  1. Agree temporary investments to investment statements at March 31, 2009.

    Temporary investments may be, for example, in treasury bills or investment certificates, and are generally capable of reasonably prompt liquidation (PS 3030.01).

  2. Compare temporary investment balances at March 31, 2009 to the June 30, 2008 audited statements. Investigate variances greater than $500,000 and 10%.

  3. Ensure that temporary investments are recorded at market value if the market value has declined below the carrying value and the decline is other than temporary. (PS 3050.05)

  4. Ensure that balances denominated in foreign currencies are translated into Canadian dollars using the exchange rates at March 31, 2009.

  5. Perform a predictive test for investment income on temporary investments. Assess the reasonableness of the investment income for the year ended March 31, 2009.

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Tangible Capital Assets

  1. For the year ended March 31, 2009 substantiate additions or disposals over $100,000 to supporting documentation.

    Ensure that the additions capitalized are in accordance with the tangible capital asset policy for school divisions as established by the Schools’ Finance Branch.

  2. Recalculate/estimate the amortization expense for the year ended March 31, 2009. Determine if the amortization expense in the financial information is reasonable.

  3. Review the repairs and maintenance expenditures for amounts exceeding $100,000 for the year ended March 31, 2009. Review supporting documentation to determine if the item was properly expensed.