SPECIAL DISTRICT FINANCIAL REPORTING - GENERAL DEPARTMENT OF AUDIT, PUBLIC FUNDS

Chapter 4

Authority, Scope and Definitions

Section 1. Authority. The statutes require the director of the department of audit to promulgate rules under which special districts shall prepare and file an annual report of their books and also be subject to different levels of oversight, depending upon total revenues received by the district during the fiscal year, [W.S. 9-1-507 (a)(iii)]. These rules are adopted to implement procedures and processes necessary for the director to fulfill the statutory duties and responsibilities, to determine the financial reports to be filed and to determine when audits and specified procedures will be required. These rules will also define certain oversight requirements for special districts with annual revenues of at least one hundred thousand dollars ($100,000) but less than one million dollars ($1,000,000).

Section 2. Scope. These rules apply to all special purpose districts having authority to levy taxes or impose assessments, including joint powers boards receiving funds from tax assessments, from special districts or from municipalities or towns. [W.S. 9-1-507 (a) and 16-4-104 (f)]

Section 3. Definitions. as used in these rules:

1. (a) “AICPA” means the American Institute of Certified Public Accountants;
2. (b) “Bank reconciliation” means a specified procedure to determine if all cash assets shown on the financial records reconcile and agree to the amounts reported by the financial institutions;
3. (c) “CPA” means a certified public accountant licensed or authorized to practice in the State of Wyoming;
4. (d) “Department” means the state department of audit;
5. (e) “Director” means the director of the state department of audit;

6. (f) “Entity” means any special purpose district or downtown development authority [W.S.

   15-9-218];

7. (g) “Fiscal year” means a period of twelve consecutive calendar months that the entity has established as their fiscal year, regardless of when such period begins and ends;
8. (h) “Government Auditing Standards” means the standards published by the Comptroller General, United States General Accounting Office, Current Revision;
9. (i) “Independent auditor” means a certified public accountant who follows the Government Auditing Standards;
10. (j) “Independent third party” means a person having a basic understanding of the purpose of the reporting entity and the nature of its business, with sufficient knowledge of bookkeeping or account- ing to understand the financial transactions of the entity, but who does not have authority to issue or sign checks or warrants of the entity;

11. (k) “Internal control evaluation”, as it relates to the audit and review procedures, means and includes:

    1. (i) A documented analysis of the procedures established by the reporting entity to assure that financial transactions are properly recorded; (see guidance in the current update of the Wyo- ming Special District Accounting Handbook);
    2. (ii) Tests of the system sufficient to determine whether the system, and compliance with its procedures, provides reasonable assurance that the entity’s assets are safeguarded and that liabilities are accounted for; to test that public funds are used in accordance with laws, regulations and policies, and that resources are safeguarded against waste, loss or misuse; and that reliable data are obtained, maintained and fairly disclosed in reports;
    3. (iii) A written summary of reportable conditions and material weaknesses discovered in internal controls and corrective measures which should be implemented;
    4. (iv) For the internal control self-evaluation of those entities not required to have an independent accountant (CPA) audit or review, the Internal Control Evaluation Worksheet as provided by the department of audit and updated on an annual basis, may be used in fulfillment of this procedure.
12. (l) “Officer” or “official” means the chairman of the official board, whether appointed or elected, the treasurer of the special district or other local government entity, or if no position is specified, any member of the Official Board.
13. (m) “Oversight” means and includes the reports, procedures and processes established by rules and regulations of the department to ensure that the director may comply with the statutory re- quirement to supervise the financial accounting of the special district entities in this state.
14. (n) “Revenue” for the purpose of reporting, means and includes all revenues from all outside sources, as well as, all debt proceeds and grants received during the reporting fiscal year. If the entity normally reports on a cash basis, the report will conform to cash revenues received. If the entity nor- mally reports on an accrual or modified accrual basis, the report will be consistent with whichever accounting basis is normally used.
15. (o) “Review level engagement” means a procedure which complies with the AICPA profes- sional standards. The financial statements should also contain a schedule of state financial assistance as identified by the department of audit, received by the entity, if any. Footnotes to financial statements mustdisclose all known commitments as of the date of the financial statements that are material to the financial statements, including construction commitments.
16. (p) “Self audit” means an analysis conducted internally by an independent third party, with the assistance of the entity, following procedures set forth in the section titled AUDITS of the Wyoming Special District Accounting Handbook and certified to by an officer, to verify the correctness of transac- tion recording and to provide management with reasonable assurance that assets are adequately safe- guarded.
17. (q) “Specified procedures” means a procedure which complies with the AICPA professional standards.
18. (r) “Wyoming Special District Accounting Handbook” means the reference and instructional manual published March 17, 1993 and as updated by the Department of Audit, Public Funds, State of Wyoming.