EDLD 5342 Week4 Part 5

Sheldon I.S.D. selects the external auditor through a process of announcing requests for proposals (RFP) in the paper. After the RFPs have been collected the Finance Office reviews the submissions and checks references in order to make a final selection. The final selection is made by selecting the auditor that has positive references and provides the district with the best value.  

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The auditor conducts the audit by reviewing the financial records of the school district and reviewing the processes used. Often times the auditors will choose a number of items and investigate those further.  Specific purchase orders may be requested or a group of purchase orders and other financial records from a specific budget code or department.  For instance, a few years ago the auditors chose to look at the activity accounts of each campus more closely than other budget codes. Last year, the auditors reviewed the entire budget but delved further into monies received from grants and the processes used for reimbursement and internal auditing of these funds.  Just because the auditors choose to investigate a specific item does not mean that there is a problem. They are simply evaluating the internal processes that are in place to ensure appropriate accounting and proper checks and balances.

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The auditors have consistently concluded that the district has appropriate financial accounting systems in place. The school district has consistently achieved superior FIRST ratings during the past six years. However, this school year the district received an Above Average rating. This was due to a lower than expected return on investments.  In the current economy this is not a surprise and the district is optimistic that we will again receive a superior rating in the near future.  

During our most recent audit a few recommendations were made by the auditors. First, the auditors recommended that a formal process be implemented for prior approval of all reimbursements. The district has implemented a PO2 system that now requires staff members to complete a PO2 prior to purchasing any item at a store for which they are planning on requesting reimbursement.  These PO2s must be approved at three administrative levels the same as a normal purchase order. Failure to complete a PO2 will result in no reimbursement being distributed. Secondly, a recommendation was made to conduct internal audits on all grant funds on a quarterly basis and submit reimbursement requests for the grant at that time. We have already implemented this practice and the district now submits documentation to the grantee on a quarterly basis.

 The results of the audit are presented to the Board of Trustees by the auditors. The results of the audit are placed on the agenda. The auditors report their findings directly to the school board. Additionally, the Chief Financial Officer holds a public forum every year to review the FIRST rating and field any questions from the public that may arise.  This public forum has always been an informative time that our district strongly encourages the public to attend.