Pursuant to Sections 11.45(7)(b) and 218.39, Florida Statutes, certain district school boards and all charter schools and charter technical career centers (charter schools) are required to obtain annual financial audits conducted by independent certified public accountants.  We review all charter school and district school board financial audit reports submitted pursuant to Section 218.39(8), Florida Statutes.  Audit reports for the fiscal year ended June 30, 2004, were required to be filed with us within 45 days after delivery of the audit report to the charter school or district school board’s governing body, but no later than 12 months after the end of the fiscal year (June 30, 2005).  We reviewed audit reports for 247 charter schools and 16 district school boards and determined that the audit reports were generally presented in accordance with government auditing standards, generally accepted accounting principles, and Rules of the Auditor General.  However, we noted instances in which the audit reports were not submitted within the time frame established by Statute or were not prepared in accordance with all applicable requirements, as follows:

Finding No. 1:  Timely Submission of Annual Financial Audits

Audit reports for 3 charter schools were not submitted to us.  Also, audit reports for 33 charter schools and 2 district school boards were not submitted to us within 45 days after delivery to their respective governing bodies.  Additionally, 17 charter school audit reports were received after the June 30, 2005, filing deadline. 

Finding No. 2:  Documentation of Date of Delivery of Annual Financial Audit Report to Governing Board

Correspondence accompanying 31 charter school audit reports did not indicate the date that the audit reports were delivered to their governing body.  This information is necessary to demonstrate compliance with audit report submission requirements.

Finding No. 3:  Completeness Reviews

Our completeness reviews of the audit reports received for 247 charter schools and 16 district school boards disclosed missing items in audit reports for 45 charter schools and 2 district school boards.  These missing items included significant items such as required report language relating to opinion units, financial statements, notes to financial statements, auditor’s reports, management letters, and auditee responses thereto.

Finding No. 4:  Comprehensive Reviews

We conducted comprehensive reviews on a sample of the audit reports.  These reviews disclosed instances of apparent noncompliance with certain requirements, primarily relating to the presentation of the financial statements, note disclosures, and required supplementary information (management’s discussion and analysis and budgetary comparison schedules) in accordance with generally accepted accounting principles.  Our comprehensive reviews also disclosed a significant number of exceptions related to the presentation of the schedules of expenditures of Federal awards.