Wyo. Code R. 021-0005-4
Effective Date: 01/08/2014 to 03/20/2018
Rule Type: Superceded Rules & Regulations
Reference Number: 021.0005.4.01082014
DEPARTMENT OF AUDIT, PUBLIC FUNDS
The statutes require the Director 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 or expenditures of the district during the fiscal year. [W.S. 9-1-507 (a)(iii), (vii) & (viii)]. 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, to determine when audits and specified procedures shall be required, and to establish the format for additional reporting by special districts.
These rules apply to all special districts having authority to levy taxes or impose assessments, or receiving funds from special districts, municipalities, or towns. Sections 5 and 6 do not apply to special districts created by and subject to administration by the courts. The Department shall provide forms, guidance, and direction for local governments requesting assistance.
Accurate and uniform reporting of financial information is necessary to determine the level of supervisory oversight necessary for special districts. The Department is required to provide accurate financial information to the legislature and to other state, federal, and private agencies, regarding the cost of operating and maintaining state and local government, special districts, and specific government programs. The reports and reporting methods required by these rules are to ensure uniformity and accuracy in reporting revenues, expenditures, and financial activities by the reporting entities in order for the Department to fulfill its supervisory and audit responsibilities.
(e) 'Department' means the state department of audit.
(f) 'Director' means the director of the state department of audit.
(g) 'Electronic Budget Form' means the form and instructions used to complete reporting as required by W.S. 9-1-507(a)(viii). The electronic budget form can be found on the department of audit, public funds website.
(h) 'Entity' means any entity as listed in W.S. 16-12-103.
(i) 'Fiscal year' means the period beginning July 1, and ending June 30.
(j) 'Government Auditing Standards' means the standards published by the Comptroller General, United States Government Accountability Office, Current Revision.
(k) 'Independent auditor' means a certified public accountant who follows the Government Auditing Standards.
(l) '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 accounting to understand the financial transactions of the entity. The independent third party cannot be a person or an immediate family member of a person who has management authority over the reporting entity or is a signor of the entity's checks.
(m) 'Internal control evaluation', as it relates to the audit and review procedures, means and includes:
(i) A documented analysis of the procedures established by the reporting entity to assure that financial transactions are properly recorded (see guidance on department of audit, public funds website regarding special districts).
(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; that resources are safeguarded against waste, loss, or misuse; and in internal controls that reliable data are obtained, maintained, and fairly disclosed in reports.
(iii) A written summary of deficiencies in internal control significant in context to the audit objectives discovered and corrective measures, which should be implemented.
(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 and updated on an annual basis, may be used in fulfillment of this procedure.
(n) '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.
(o) '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 requirement to supervise the financial accounting of the special district entities in this state.
(p) 'Proof of Cash' means a procedure much like a bank reconciliation, except more extensive and detailed. It is used to verify the 'books of the entity' are in agreement with the cash transactions which have been recorded by the bank. The form is available on the department of audit, public funds website. This procedure shall be performed by an independent third party.
(q) '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 shall conform to cash revenues received. If the entity normally reports on an accrual or modified accrual basis, the report shall be consistent with whichever accounting basis is normally used.
(r) 'Review level engagement' means a procedure which complies with the AICPA professional standards. Footnotes to financial statements shall disclose all known commitments as of the date of the financial statements that are material to the financial statements, including construction commitments.
(s) 'Self audit' means an analysis conducted internally by any official not involved in the daily transactions of the entity or by an independent third party, with the assistance of the entity, and certified by an officer, to verify the correctness of transaction recording and to provide management with reasonable assurance that assets are adequately safeguarded. Guidance is available on the department of audit, public funds website.
(t) 'Special District' means any entity as listed in W.S. 16-12-103.
(u) 'Specified procedures' means a procedure which complies with the AICPA professional standards.
The reporting entity shall comply with the electronic budget form and associated instructions found on the department of audit, public funds website. The format shall include at least a budget message, budget summary, statements of cash available, revenue forecasts, and expenditure plan. The Director shall provide specific instructions for completion of the online budget reporting form. The reporting entity shall submit electronically the electronic budget form, the date of the budget hearing, and the date of the budget approval to the Department and the board of county commissioners of the county where the special district is located.
The proposed budget reports shall be filed online with the Director and to the board of county commissioners of the county where the special district is located by June 1st of each year.
To avoid duplication of effort, the annual census report currently being filed with the federal bureau of the census, or with the Department, by all entities required to report to the Department, shall be utilized by the Department to the extent possible to obtain the required revenue, expenditure, and financial activity information. The Department shall seek approval from the appropriate federal authority for modification of the annual census report form, if necessary, to provide the information required by the Department. However, refusal of the federal authority to modify the census report form shall not alter the obligation of the reporting entity to provide the Department with the required information.
(a) The census report form to be used is the Survey of Local Government Finances. Single purpose special districts shall use form F-32, and multi-purpose districts shall complete and return the census form for major special agencies, form F-66-WY4.
(b) A copy of the appropriate form may be obtained from the Department and is posted on the department of audit, public funds website.
(c) If the Director requires additional or supplemental information, the Department shall provide the necessary forms for uniform reporting.
(a) It is recognized the reported census financial data may not always agree with audited financial statements or with accounting entries made in accordance with Generally Accepted Accounting Principles (GAAP).
(b) The Director shall provide specific instructions for completion of each reporting form to ensure financial data reported to the Department is uniformly identified, grouped, and reported. The reporting entity shall comply with the Director's instructions, even though compliance requires modification of internal accounting programs, procedures, or reports. The Department shall provide information and assistance to the reporting entities.
The required census reports shall be filed with the Director by September 30.
The entities, whose financial accounts and records are subject to supervision by the Director, shall be classified according to their relative risk assessment. The higher of the total revenues received, or expenditures made, by the district during the fiscal year under review, subject to the limitations set forth in W.S. 9-1-507(a)(iii)(A-D), shall determine the level of risk assessment. The level of risk assessment shall determine the type of oversight or supervision required of the entity, unless special audit requirements imposed by other state or federal laws, rules, regulations, contracts, or agreements require a different type or level of oversight or supervision. The level of risk assessment for each entity shall be determined each fiscal year.
(a) Using the required reports as a basis for assessment and depending upon the higher of the total revenues received, or expenditures made, by the district during the fiscal year under review subject to the limitations set forth in W.S. 9-1-507(a)(iii)(A-D), there shall be a total of five levels for special districts. There are three levels with oversight prescribed in the statutes and two additional levels between $100,000 and $1,000,000 for special districts, with oversight as defined in these rules. The complete list is as follows:
(b) Level A is the highest risk assessment level and requires the highest level of supervision and oversight. Level E is the lowest level of risk assessment and requires the lowest level of supervision and oversight.
(c) Federal and state grants shall be included in revenues for the fiscal year in which the grant is received, for purposes of determining the assessed level of risk.
(d) An entity classified at Level A shall have a CPA audit in accordance with Government Auditing Standards.
(e) An entity classified at Level B shall have a review level engagement, or a higher level of audit service, such as an audit, at the special districts option, and the following additional procedures.
(i) The notes shall disclose any failure to comply with state statutes requiring documentation of a depository relationship between the entity and any depository; and
(ii) Other procedures which may be required or approved by the Director and are identified prior to the commencement of the engagement.
(f) An entity classified at Level C shall have a self-audit, a proof of cash, and an annual report summary and shall submit them to the Director.
(g) An entity classified at Level D shall have a proof of cash and an annual report summary and shall submit them to the Director.
(h) An entity classified as Level E shall only be required to provide the census report as described in section 8.
Each entity is required to perform the level of procedures required for their respective risk level, or a greater level of assurance (at their option) at the close of each fiscal year. Completion of the procedures performed shall be certified under oath by the officials of the entity. The certification shall be filed with the Department no later than December 31. A copy of the certification form is included on the department of audit, public funds website.
All applicable reporting, based on level of risk shall be due to the Department by December 31.