Financial Audits

PSS 2014 Financial Audit

Summary


PSS RECEIVES UNMODIFIED OPINIONS for 2014 FINANCIAL STATEMENTS and INTERNAL CONTROL AND COMPLIANCE REPORTS

(The following summary is based on the independent auditor’s report prepared by BCM and does not constitute an audit report.  Please visit OPA’s website for the full audit report.)

The Commonwealth of the Northern Mariana Islands Public School System (PSS) received unmodified opinions on its Financial Statements and Internal Control and Compliance Reports from an independent auditor for the year ended September 30, 2014.  An unmodified opinion by the auditor means that PSS’s financial records and statements are fairly and appropriately presented and in accordance with Generally Accepted Accounting Principles (GAAP).  An unmodified opinion on Internal Control and Compliance means that PSS complied, in all material respects, with the compliance requirements that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2014.

This is the second consecutive year that PSS earned an unmodified opinion on its Financial Statements and the first year that it received an unmodified opinion on its Internal Control and Compliance Report.

Audit Findings

Audit findings occur when an auditor discovers deficiencies in internal control; noncompliance with provisions of laws, regulations, contracts, or grant agreements; fraud; or abuse.

For 2014, the auditor cited PSS for 8 audit findings.  This is a decrease from the 10 findings in 2013 and a significant decrease from 17 findings in 2012.  These decreases can be attributed to PSS’s improvement in its documentation, practices, and overall management.

Questioned Costs

A Questioned Cost is an expenditure that is questioned by the auditor and is the result of an audit finding:

  1. Which resulted from a violation or possible violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the use of Federal funds, including funds used to match Federal funds;

  2. Where the costs, at the time of the audit, are not supported by adequate documentation; or,

  3. A finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable.

Unresolved questioned costs may result in the audited agency having to reimburse the grantor agency for the total amount of the questioned costs.  In FY 2014, there were no questioned costs attached to the findings.  This was the second consecutive year that the auditors did not cite questioned costs.  This is a significant improvement from $205,562 questioned costs in FY 2012.  The reduction in questioned costs is a direct result of the decrease in audit findings

Independent Auditor's Report and Financial Statements, and Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133-View

 

 

 

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Last Updated 6/8/2015 5:47:30 AM