Leah Pasternak

Government & Not for Profit ACC410

Chapter 14: Auditing Governments and Not-for-Profit Organizations- Homework Submission

14-5

1. Due to the limited amount of information provided, the best strategy would be to determine
whether the school has effective and efficient monitoring policies and procedures in place to ensure the
school district is complying with federal and state eligibility requirements, determine whether there are
sufficient policies, procedures, and authority for ensuring that deficiencies in the school districts
compliance with federal and state requirements are corrected, review relevant federal and state laws,
rules and regulations issued by the State Education Agency, review records and documentation related
to the areas of oversight of compliance with certain requirements, interview staff and management to
gain an understanding of the processes and controls which are utilized to administer the meal program,
and review training materials provided by the school.

2. Under the Single Audit Act, a report must be given on internal control relating to financial statements.
While there is evidence of 25 students who do not meet the eligibility requirement but are still part of
the discounted lunch program; this weakness in the internal controls does not necessarily relate to the
financial statements. The best thing to do is to report that the audit is according to the Government
Auditing Standards in the audit report, to cover any violation or mistake that the auditor could have
made.

14-7

1. Objective indicators that could be used to assess the performance of winning national championships
in all major sports should be quantitative indicators of scores throughout each sports season, as well as
amounts of salaries for each sport team with revenue indicators, also costs associated with each team
should be presented to get an accurate picture of what it costs the university versus what the university
gains from each sport as revenue.


14-9

The first step in recommending to the City Council why the center has not attracted the previous
predicted conventions and other events would be to conduct a complete audit of the centers mission,
personnel and history. Also verifying whether the established program through the legislature is
appropriate and review of the laws helps to gain better insight as to what the centers original goals
were and why they are now failing. It would be best to determine if the current programs through the
center are within the centers control and what is happening within the centers programs that are
causing the deficits. It would also help to present the city council with the GAOs yellow book on
standards of adequate planning and controls, to help with ensuring the centers future success.