The external audit is one of the most significant of all for Week 4 assignments. A districts school board has the responsibility to oversee what happens with taxpayers monies. One key factor in this process is to ensuring that the school district has an annual audit in place.
Part 5 Annual External Audits
I was unable to have the opportunity to interview my Superintendent for this assignment due to extenuating circumstances. In his absence I had an informative visit with one of my Site Supervisor who has successfully completed this course and currently is enrolled in the doctorial program at Lamar University.
How is the external auditor selected?
Ms. Bahnsen previewed the lecture notes and assured me the audit process for our district is not much different than stated in the presentation Dr. Stephens presented to us.
BISD selects the external auditor the process of request for qualifications. The auditor responds to the district by submitting information that provides the qualification to perform an audit. The board and our Superintendent work as a team to make the determination regarding the auditor’s relationship with the district. Members meet with the auditor during a properly called schedule meeting to view options that are best for the community. According to legal requirements by the Texas Education Code a school district’s board of trustees has the obligation to ensure that the district’s fiscal accounts are annually audited. The fees for the audit are the responsibility of the school district and the auditor must be a certified public account from the Texas Board of Pubic Accountancy. As stated in the lecture notes once the auditor is selected the request is submitted the state for approval.
2. How does the auditor conduct the audit?
BISD ‘s auditor audits the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of BISD for the fiscal year based on the District’s basic financial statements. The audit is conducted by standards applied to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. The auditor’s main purpose is to express an opinion on the financial statements, but not for purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. This was somewhat confusing to me. As stated in the lecture notes, a written report is prepared solely for the information and use of the District’s Trustees and management, the Texas Education Agency. It is not intended to be and should not be used by anyone other than those parties specified in the report.
3. What does the audit conclude about district financial procedures and actions?
There is a process called Compliance and Other Matters which part of obtaining reasonable assurance about whether the District’s financial statements are free of material misstatement, a series of tests are preformed of the district’s compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance which could have a direct and material effect on the determination of financial statement amounts. This also includes major federal program compliance etc., Again the audit letter stipulates that providing an opinion on compliance on the provisions is not an objective of the audit, so the audit do not express such an opinion. The results of the tests are required to be reported under the Government Auditing Standards. The district receives a separate letter dated noting certain matters that were reported to the District’s management about the tests.
4. How are the results communicated?
The results of the annual audit are presented during a regularly scheduled meeting with the board late in November, as well submitted for public view with the media and a copy is submitted to TEA. At any time during this meeting the board can ask questions of concern. Finally, a formal letter is prepared by the Auditor’s (CPA firm) and submitted to the Board of Trustees.
No comments:
Post a Comment