Who should review my filed Annual Reports?
Filed reports should be reviewed by someone other than the preparer. This can be a mayor, fire chief or board member.
- It is best practice to complete a thorough review of the Annual Report by someone other than the preparer before submission to ensure accuracy. The reviewer should have experience with financial reporting.
- The Reviewer should create their own review notes document to attach to this checklist. They should be asking questions to further their understanding.
- Examine supporting documentation from the Preparer Files folder for each step. In review notes indicate any files that were not provided, and if no notes were indicated on the checklist completion notes.
- Examine accounting records for each review step. In BIAS, use the Treasurer’s Report, the C4/C5 statements and Schedule 06 to verify balances. In review notes indicate any records that were not provided, and if no notes were indicated on the checklist completion notes.
- Login to SAO's Online Services and open 2019 Annual Report to view and print applicable filings (C4/C5 Statements, Notes to Financial Statements and Schedules 01, 06, 09, 15, 16, 19, 21 and 22).
Perform Review Steps and Create Review Notes
- C4/C5 Statements match totals from page 1 and page 2 of the Treasurers Report outlined in step 5 on Checklist 6.
- Match ending balances on C4/C5 Statements to current reporting year’s December Treasurer’s Report page 1.
- Confirm the Statement C4 excludes funds 600- 650
- Confirm the Statement C4 combines like funds (i.e. water with water debt).
- Confirm the Statement C4 beginning funds match the prior year reported funds.
- Confirm the Statement C5 includes all fiduciary funds and funds are combined by type.
- Confirm that transfers between combined funds have been eliminated by checking the budget note or financial statement budget report.
- Verify reserved balances by comparing reports to the Reserved Balances tab in Workbook for Schedules and Notes.xlsx and that they are reported on C4 Statement and Notes to Financial Statements.
- Compare any adjustments coded 388 or 588 with the Schedule 06 and verify that they are correct and are reported on the C4 Statement.
- Check variances provided by SAO on Schedule 01 Summary and Schedule 09 Summary are correct and/or are explained with supporting documentation.
- Verify any debt balances including additions and reductions/payments by reviewing any supporting documentation and the Debt Service Requirements tab to match balances and ensure they are reported on the Schedule 09 and Notes to Financial Statements correctly.
- Compare compensated absences with the Accrual Balances Report exported from BIAS and that they are reported on the Schedule 09 and Notes to Financial Statements.
- Verify Pension liabilities/assets are correct and complete with supporting documentation and are reported on the Schedule 09 and Notes to Financial Statements.
- Confirm that OPEB liabilities are correct and complete with supporting documentation and are reported on Schedule 09 and Notes to Financial Statements.
- Confirm that pollution remediation liabilities are correct and complete with supporting documentation and are reported on Schedule 09 and Notes to Financial Statements.
- Expenditures from state financial assistance & federal awards are correct and complete with supporting documentation from awarding agency and are reported on Schedule 15 (state) and Schedule 16 (federal) including comparison to grant revenues. If Schedule 16 filed, then Notes to Schedule 16 are included and referenced on Schedule 16.
- The structure and layout of the Notes to Financial Statements are consistent with the template provided by SAO.
- Other Disclosures Note includes appropriate disclosures including significant and/or subsequent events.
- Notes to Financial Statements are reviewed for math errors, grammar, spelling, clarity, completeness and relevancy.
- Cash inflows, cash outflows and ending balance on Schedule 06 are reconciled to C4/C5 Statements from accounting records and/or supporting documentation. The total variance should be zero.
- Responses for other applicable schedules (19, 21 and 22) are correct and complete.
- Attach review notes. Sign and date Step 7 on Checklist 6.
Congratulations, you are done!