ADMINISTRATIVE LETTER: 2
POLICY CODE: DI
This letter provides notice of several changes to requirements and procedures as well as reminders about the annual audit requirements for audits for the fiscal year ending June 30, 2012, and subsequent years.
Changes to state law
Pursuant to Public Law 2011, Chapter 678 (LD 1742) “An Act To Amend Education Laws” Part A, the following amendments and additions were made to state law regarding annual audit requirements:
- Sec. A-1. 20-A MRSA §6051, sub-§1, ¶D, as enacted by PL 1985, c. 797, §36, is amended to read:
D. An audit of all federal programs in accordance with applicable federal law including a written determination that the audit has been conducted in accordance with applicable federal laws relating to financial and compliance audits as indicated in federal Office of Management and Budget circulars;
- Sec. A-2. 20-A MRSA §6051, sub-§1, ¶H, as enacted by PL 2009, c. 571, Pt. E, §12, is amended to read:
H. A determination of whether the school administrative unit has complied with budget content requirements pursuant to section 15693, subsection 1 and cost center summary budget format requirements pursuant to sections 1305-C, 1485, 1701-C and 2307; and
- Sec. A-3. 20-A MRSA §6051, sub-§1, ¶I, as enacted by PL 2009, c. 571, Pt. E, §13, is amended to read
I. A determination of whether the school administrative unit has exceeded its authority to expend funds, as provided by the total budget summary article.; and
- Sec. A-4. 20-A MRSA §6051, sub-§1, ¶J is enacted to read:
J. A determination of whether the school administrative unit has complied with the applicable provisions of the unexpended balances requirements established under section 15004.
- Sec. A-5. 20-A MRSA §6051, sub-§3, as repealed and replaced by PL 1985, c. 797, §36, is amended to read:
3. Auditors. Audits shallmust be conducted by either the Department of Audit or qualified certified public accountants or public accountants registered by the Board of Accountancy. The auditor shall review the audit with the school board.
- Sec. A-6. 20-A MRSA §6051, sub-§7, ¶¶B and C, as enacted by PL 2009, c. 571, Pt. E, §14, are amended to read:
B. A school administrative unit audit is not necessary to meet federal audit requirements; and
C. The municipal school administrative unit files the municipal audit or audits that include the fiscal year specified in subsection 2; and.
- Sec. A-7. 20-A MRSA §6051, sub-§7, ¶D, as enacted by PL 2009, c. 571, Pt. E, §14, is repealed.
- Sec. A-8. 20-A MRSA §15909, sub-§§5 and 6 are enacted to read:
5. Records. Financial records and accounts for a school construction project must be kept for 7 years after the final audit.
6. Audit. Financial records and accounts for state-funded school construction projects must be audited by department staff or certified public accountants contracted by the department.
- The Department requests that all annual audits, reports, and other correspondence be submitted electronically by email to DOE.Audit@maine.gov or by a direct link on the audit website http://www.maine.gov/education/audit/index.shtml. The Department will accept hard copies but prefer electronic submissions and we intend to require all submissions be electronic starting July 1, 2013.
- All annual audits (financial statement and OMB A-133) should include a Schedule of Expenditures of Federal Award.
- Auditors are required to cite noncompliance with Title 20-A MRSA 6051 §1 (G)
- School boards are required to comply with Title 20-A MRSA 6051 §4 on or before November 1 each year.
- Audit reports are due within six months after the end of the audit period; e.g., reports for the fiscal year ending June 30 are due on or before December 30.
- Per statute, it is the school board’s responsibility to submit the audit unless it is included in the engagement letter that the audit firm will submit the audit to the Department on behalf of the school board.
Contact Heather Neal, Supervisor of Audit, with questions by email at firstname.lastname@example.org or by phone at 624-6863.