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The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary Activities, which is effective for fiscal years beginning after December 15, 2018. The implementation of GASB 84 will have a major impact on Student Activity Fund (SAF) reporting.
School activity accounts will have an enhanced reporting requirement, which may warrant a heightened focus on review of controls, in addition to the revised reporting. School activity accounts are inherently risky due to cash collections and the limited resources available to oversee these transactions at the school level.
Since the standard is effective for School Boards for the 2019-2020 fiscal year, School Board officials should account for these funds in non-fiduciary funds. Internal audits of your school activity accounts are key to identifying risks and mitigating monetary losses to the school district.
Questions to Consider:
Because of the sheer volume of student activities of many school districts, it is critical to have a plan in place to monitor these accounts and to move them from the fiduciary reporting model. Our team can help with the following:
Contact us today to start a discussion about how P&N can help you implement these new standards. You can also learn more about our experience in the governmental sector here.