EXTERNAL FINANCIAL AUDIT
After interviewing our Superintendent, I found that our external audit is also conducted very similarly to the way Dr. Lu explained it in the course lecture. First, proposals are solicited from area audit firms. The submitted proposals are evaluated, one is selected and a contracted is prepared. The proposal is then submitted to the Board of Trustees for approval.
Our preliminary audit is generally done in August and completed in early August after the fiscal year has closed out August 31. The auditing firm sends a list of the documents that they will examine and the procedures they will follow. They generally stay in our small district for one and a half to two days. The auditors ask questions regarding procedures and they review documents. They also ask questions of some members of the Board of Trustees to make sure that they have been included in the financial process. The auditors then write up their report that complies with state laws.
The auditors prepare an in-depth booklet that identifies strengths and weaknesses of the school’s financial accounting. They will also communicate any findings that the district is out of compliance in any areas should this be the case. The auditors also help determine the district’s fund balance.
At the November School Board meeting, the accounting firm will communicate the results to the Board of Trustees and any other attendees. The results will be reported at a public hearing, a copy of the report is sent to local media and one is submitted to the Texas Education Agency.
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