CAS
Pension Discrimination Testing Results
SGA
Questions and Answers
1. May we please receive a copy of the prior year’s financial statements for the ASC, Defined Contribution Retirement Plan and Student Government Association?
The last statements available are for June 30, 2021, and can be found here: https://www.cortlandaux.com/general-asc/rfps/auditing-rfp-v2.
We are in the process of finalizing our year end of June 30, 2022 this month and expect our current partner to finalize financial statements in September. As noted in the RFP, we need our new partner to complete defined contribution and H&W for year end June 30, 2021.
2. How many auditors are typically in the field each year and for approximately how many days?
It has been our recent experience that 2 auditors are on site one day for our annual store inventory in May and in our office for 4-5 days the third week of July and if needed, a few days the last week in July (usually to complete SGA). Follow up is also completed as needed via email.
The Pension and H&W field work has been completed remotely for the last several years in late November/December and data is accumulated through a shared secure portal. I would estimate at least 4 to 5 days to file extensions, select testing and audit and another 2 to 3 to draft, review and file returns (5500 usually in April/May and H&W has been in June).
3. What were the fees for the prior year’s services for the ASC, Defined Contribution Retirement Plan and SGA?
Due to contractual obligations, we are not able to provide though I hope the estimated days in q.2 assist you with providing a proposal.
4. What is the typical timing of fieldwork each year?
1 day last Thurs. in May to observe inventory, financial audit week 3 in July, statement prep and submission to SUNY due mid August, presentation to Auxiliary Board by October, SGA by early November, pension audit starts in November, concludes by early January with defined contribution filing in April and H&W in June. It is important to note that we shut down after Fall Semester and our offices typically close the week before winter holidays and re-open the second week of January. Staff will be unavailable to respond during that time.
I would also like to advise that due to multiple employee categories (student, PT, FT, etc. ) the pension audit may require additional hours the first year to understand eligibility which affects testing. For example, depending on hire date, a FT employee that starts this year will get a lower employer contribution than an employee with a start date from 3 years prior. Eligibility and contribution tends to change when a new union contract is executed every 5 years and it has been tradition to only change the benefit for hire dates after that particular agreement is executed.
5. Do you prefer the audit to be conducted on-site, remotely, or a hybrid version of both?
We do not have a preference. We can reserve a conference room in advance on site and we have been successful doing remote as well. It has been our experience that it goes quicker when the bulk of the fieldwork is completed on site because we dedicate our staff for that specific period of time. Remote would be successful if we know what days to dedicate staff to respond and/or we are given time to respond. The pension audit has been 100% remote for a few years. We do have a long shutdown over winter break where fieldwork should not be planned.
6. Expecting any major changes in 2022 to 2023 and going forward?
The university will increase enrollment due to completion of housing projects on campus and thus, a return to pre-pandemic numbers in on-campus housing and increased meal plan revenue YOY is expected.
We are also planning on researching operating systems that provide more flexibility with regards to meal plan options. Campus dining in the future needs to provide students with better options and flexibility.
7. Please describe your accounting department and management. Are you expecting any changes in the next 3 to 5 years?
The accounitng department consists of a Controller, Accounting supervisor, Accounting clerk, Accounts Payable clerk, Accounts receivable/cash office clerk and a front desk clerk. The executive director of the organization is the former controller. The associate director oversees HR and payroll.
No personnel changes are expected; however, we are researching moving more applications to cloud based.
8. How is fieldwork conducted? Remotely? In your office? Hybrid? What is your preference?
(answer copied from previous similar question) We do not have a preference. We can reserve a conference room in advance on site and we have been successful doing remote as well. It has been our experience that it goes quicker when the bulk of the fieldwork is completed on site because we dedicate our staff for that specific period of time. Remote would be successful if we know what days to dedicate staff to respond and/or we are given time to respond. The pension audit has been 100% remote for a few years. We do have a long shutdown over winter break where fieldwork should not be planned.
9. For the adoption of the lease standard what work have you completed so far?
We have one long-term operating lease that will need to be accounted for in the financial year beginning July 1, 2022 and ending June 30, 2023 (due to being a 501c3, the standard is scheduled to be adopted for fiscal years beginning after December 15, 2021). Please also see note 10 in prior annual financials for further lease detail.
10. If you could change anything about your current audit process what would it be?
I believe the pension and H&W field work may go quicker if our audit partner scheduled a kick off meeting to acclimate new auditors every year that are performing the fieldwork and then dedicated one to two day period (before our winter shut down) rather than review and respond over the course of many weeks. We have a small HR staff and have significant payroll and timekeeping obligations bi-weekly as well. As stated in a prior inquiry, although we do not have a significant volume of employess in our 403b, we do have different categories of eligibility and employer contributions.