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used/paid for disclosure in the notes to the financial <br />statements. <br />• Consider the appropriateness of the expense allocation for <br />the change in compensated absences of governmental <br />activities. <br />• Inquire about an estimated current portion and consider <br />whether this is being presented appropriately in the financial <br />statements. Compare current portion to actual <br />uses/payments for reasonableness. <br />• Inquire about the existence of any severance agreements or <br />termination benefits. Obtain supporting documentation and <br />test accordingly - <br />Equity • Compare beginning equity by fund to the prior year audit and <br />investigate any differences. <br />• Review fund balance classifications based on the nature of <br />the funds and board resolutions/policies (if applicable). <br />• Review net asset classifications for accuracy. Recalculate net <br />assets invested in capital assets net of related debt. <br />These substantive procedures will be completed primarily by our staff auditors. Each workpaper will <br />be reviewed by the engagement manager (and inhere appropriate, the engagement principal) �ng <br />fieldwork so questions can be timely resolved . <br />Phase 3: Financial statement tie out and review <br />Financial Statement Tie -out - _mother key element of the fieldwork process is the tie -out of draft <br />financial statements (including footnotes), the management letter, and other applicable <br />reports/correspondence. The following are the primary steps in the preparation of the financial <br />statement tie -out: <br />Procedure Description__ - <br />Y Downloads • Obtain a download directly from the client's financial <br />accounting system which includes: complete account number, <br />account name, and account balance. For income statement <br />accounts, the original and amended budgets will be <br />downloaded as well. <br />• Assign fund and government -wide financial statement <br />captions to each account based on the level of detail in the <br />financial statements. This effectively maps each account on <br />the County's chart of accounts to the appropriate sections of <br />the financial statements. <br />IAnking V^ _z..w. Use Excel PivotTables to summarize the data in the trial <br />balance based on the assigned captions. Match the captions <br />to the prepared financial statements <br />0Rehmann <br />