Laserfiche WebLink
P 0144 <br />F\ehmann <br />the pay run and the number of service days during the period <br />under audit, recalculating the accrual. <br />• <br />Recalculate the accrual for the employer's share of FICA <br />taxes payable based on known rate of 7.65%. <br />• <br />Consider the reasonableness of other fringe benefit accruals <br />such as health insurance, retirement, and workers' <br />compensation. <br />• <br />For self-insurance programs, obtain calculations or third - <br />party reports estimating incurred -but -not -reported claims. <br />Rollforward self-insurance claims payable for disclosure in <br />the footnotes. <br />Long-term debt • <br />Obtain a rollforward of long-term debt activity. Compare the ' <br />beginning balances to the prior year audit. <br />• <br />Obtain amortization schedules for bonds and notes payable_ <br />Consider whether any debt covenants exist and test <br />accordingly. <br />• <br />Trace principal payments to the debt rollforward and the <br />amortization schedules. <br />• <br />Agree the current portion of long-term debt and future <br />minimum payments of principal and interest to the <br />amortization schedules. <br />• <br />Determine whether new debt was approved by the governing <br />body and issued in accordance with State statute. <br />• <br />Determine whether there were premiums and/or discounts <br />associated with the issuance of the debt by obtaining the <br />sources and uses statement. Consider whether any bond <br />issuance costs should be capitalized and amortized over the <br />life of the bonds. Recalculate such balances. <br />• <br />Recalculate accrued interest payable based on the first <br />interest payable of the subsequent period, the length of time <br />covered by this interest payment, and the length of time <br />within the year under audit <br />Compensated absences •Obtain <br />a detailed listing of compensated absences (accrued <br />sick and vacation time) by employee and agree to general <br />ledger control accounts. <br />• <br />Obtain an understanding of compensated absences policies, <br />such as vesting, payment rates, and maximum payouts. <br />• <br />Select a sample of individuals for testing. Trace accrued <br />hours to source files and pay rates to personnel files or <br />union/bargani ing unit contracts. Recalculate accrual and <br />determine whether hours are within the maximum amount <br />• <br />Determine whether FICA taxes are being accrued on the <br />year-end balance. <br />• <br />Rollforward compensated absences liability by obtaining <br />either the accrual for amounts earned or the amounts <br />P 0144 <br />F\ehmann <br />