Finance 5342 Week 4, Part 5

Finance 5342 Week 4, Part 5

I interviewed our Business Director concerning our district financial audit procedures. Our school district had used the same auditing guy for several years. The auditor passed away and we had to secure another auditor last year. The procedures discussed in this week’s lecture were very similar to the ones our district used in seeking an auditor.

1.       The district sent out a Request for Proposal (RFP). She indicated that the audit proposal is not necessarily a formal bid but they used the bid process. Once all proposals were received her and the superintendent narrowed down the choices and presented to the board. The board adopts the auditor’s letter on yearly bases.

2.       The auditing firm comes out for 3-4 days in June/July for a preliminary visit. During this time they do field work such as pulling invoices and gathering general information.  They then come back sometime after August 31^st for about a week.  The auditing group is given full access to all information and business office personnel. Our Business Manager is the main contact person. The group returns around November to share the full report and any findings with the Business Manager and Superintendent.  The auditor then shares the report with the board as an agenda item during a board meeting. The board then accepts the report.

3.       The audit report includes a complete and comprehensive checklist of all the district’s finances. This includes separation of duties and responsibility, making sure everyone is following policies and procedures put in place as well as looking for any abnormal patterns. Actions must be taken on any findings and the problems must be corrected. The audit information not only becomes public record but it also submitted to TEA.

4.       The results are presented and adopted by the board. They are communicated through the local newspaper and district newsletters.

Fortunately for the past 15 years our district has received excellent audit reports and financial ratings. I enjoyed visiting with our Business Manager. The visit stressed the key points discussed in the weeks lecture by Dr. Stephens and helped me relate the process to what I have seen occur in our district.