Week 4 Part 5

I interviewed our Assistant Superintendent/ Business Manager, Greg Perry, and asked him about the audit process. Mr. Perry told me that auditors are selected by a process of securing bids. First, the district asks for RFQs (Requests for Qualifications). Once the search is completed for qualified auditors, the district then seeks RFPs (Requests for Proposals). After all of the proposals are considered, a recommendation is made to the board to hire a particular firm for a period of three years. Usually, the lowest bid is accepted. To conduct the audit, a team of auditors selects a pre-determined random sample of district accounts to evaluate. The auditors look at every part of the financial record they are auditing. For example, if the auditor were evaluating a payroll record, he would look at certifications, time sheets, etc. For a transaction, he would look at invoices, payments, etc. The auditors also evaluate activity and federal funds. The auditors come to the business office twice a year, usually during the summer and in September and stay for about a week each time. The audit team then prepares a report addressing every part of the district’s audit. The hard copy of the report is prepared with three or four letters dealing with different aspects of the audit. A good report is referred to as “unqualified”. Our district’s audits have traditionally been unqualified and the findings stated that the district complied with all requirements. The auditors present the results contained in the report to the Board and send both a hard copy and electronic copy to TEA and various other agencies. Also, a portion of the report must be posted in the newspaper for reporting to the public. Reflection: I enjoyed talking with Mr. Perry about the audit process. Our financial team is committed to following procedures, and practices internal audits throughout the year, so it is expected that all of the findings will be good. Mr. Perry emphasized the importance of finding a good auditing firm that you can work with since they are essentially “moving in” twice a year, sharing office space and going through paperwork. Knowing what to expect in an audit and how to select a qualified auditor is a valuable skill for any aspiring superintendent.