Checking up on Your Tax Dollars

Through my interview, I learned a lot more about how we select an auditor, how they conduct the audit, and why we even do an audit.  Auditors help to make sure taxpayer’s dollars are being spent effectively and the district accounting departments are keeping good and accurate records.

In our district the Superintendent and Assistant Superintendent of Business solicit proposals from various audit firms.  They then interview the perspective auditors so there is a clear understanding of what is expected from the audit firm, as well as from the district.  Once the Superintendent has chosen a firm, the School Board would approve of the selection before the audit process would begin. 

Most audit firms do a preliminary audit where they do some testing of receipts and disbursements.  This is usually done right before the end of the fiscal year.  Then, once the books are closed by the school district, the auditor will come back to the district and complete their work on the audit.  Our business department assists them with whatever they may need or want during that time, but for the most part they stay out of the way for the audit. 

The auditor will then consult and question the Assistant Superintendent of Business, the Superintendent, and a few Board Members.  The auditor will make sure the board is receiving the correct financial information.  They will also visit with the Superintendent about the day-to-day operations of the business department.  Finally they will also question the Assistant Superintendent of Business regarding internal controls, business office personnel, etc.  If the auditor has any minor suggestions, they will let the Superintendent know in the form of a Management Letter.  If the auditor notices any major problems in the district’s finances, they will consult with the Superintendent directly and he will take appropriate actions.

Once the audit is completed, the auditor will relay his findings to the Assistant Superintendent of Business and the annual audit will be prepared and submitted to the school board for approval.  Our school board typically does not ask too many questions about the audit report.  They are very pleased with the management of district funds.  Our superior FIRST ratings each year seem to keep them pretty happy too.