Interview on Financial Audits

            According to Policy CFC, the school board shall have the district’s fiscal accounts audited annually at the district’s expense by a Texas certified or public accountant holding a permit from the State Board of Public Accountancy. In order to satisfy the policy requirements for an annual audit, the school district must select an auditor. The school district submits a call for proposals from auditors, and the auditor is selected based on a qualifications process. The Request for Qualifications (RFQ) is completed by the various auditors detailing their individual organizations experiences with school finance. The RFQ and bid packets are received and reviewed, and interviews are conducted. The final end result, the external auditor is selected for the district.

            The audit takes place in our Central Office, where the firm (usually about four individuals) reviews the districts finances. The team reviews many documents, everything from transactions, to debt payments, and payroll, among many other items to determine if the district is financially solvent. As the auditor reviews the documents, they are seeking to determine whether procedures and policies were followed.

            The results of the audit are presented to the school board during a general session in the month of December. This past week, the auditor gave his presentation to the school board, and revealed some interesting facts for the district. The audit report explains the relationships of funds, and gives recommendations for any discrepancies that are revealed.

            Prior to the interview with the Business Manager and listening to the auditor this past week, I had a limited experience to the scope of school finance. Now, my view of school finance has widened even further.