1. How is the external auditor selected?
Every four years school districts develop a request for qualifications for an external auditor. The request highlights the district’s requirements (previous work with school districts, size of audit team, etc) and preferences. Audit firms submit documentation highlighting their experience, audit team, audit plan, etc. The district develops a review committee to review documentation and interview the finalists. This committee makes a recommendation of the most qualified firm. At that point, the district negotiates price with the finalist to get to an agreed upon cost of the services. If agreement is reached then the recommendation is taken to the Board of Trustees for review and approval.
2. How does the auditor conduct the audit?
The audit is conducted in several phases. In the summer, auditors come on site and review transactions through June and perform some testing on the district’s control procedures. This generally is a one week process with several auditors. They review selected purchases to ensure the purchasing and receiving process worked as planned. They will then return for final audit work in December. This is usually a two week process with several auditors. They review transactions through year end and do more testing of our systems and processes. The final audit is prepared and presented to the Board of Trustees at the January board meeting.
- What does the audit conclude about district financial procedures and actions?
The audit statement is very concise letter that summarizes their findings. It says among other things that:
“In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the District as of August 31, 2010, and the respective changes in financial position and, where applicable, cash flows, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.”
- How are the results communicated?
Results are communicated through a management letter as well as a Certified Annual Financial Report. The most recent CAFR is in the link provided: http://www2.ccisd.net/Libraries/Finance/2010_CCISD_CAFR.sflb.ashx
The new one will not be completed until January
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