1 A U D I T S U B C O M M I T T E E M E E T I N G P R E S E N T E - PowerPoint PPT Presentation

1 A U D I T S U B C O M M I T T E E M E E T I N G P R E S E N T E D T O : S W E E T W A T E R U N I O N H I G H S C H O O L D I S T R I C T A U D I T S U B C O M M I T T E E P R E S E N T E D B Y : K A R E N M I C H E L C H I E F F I N A N C I A L O F F I C E R F R A N C E S M A R T I N E Z I N T E R N A L A U D I T O R

Fiscal Stability/Accountability 2 Components:  Well-defined and understood budget development process  Strong internal controls  Regular on-going budget monitoring and reporting  Timely financial reporting  Year-end close activities including the financial audit

Financial Audit 3 Serves multiple purposes  Used for the purposes of evaluating internal controls and systems  Evidences good stewardship of the taxpayers’ money  Opportunity to evidence District’s financial stability to internal and external stakeholders

Best Practices 4 Audit Committee is identified as a “best practice” by many organizations  Endorsed by National Association of Chief Business Officers  Endorsed by Institute of Internal Auditors  American Institute of Certified Public Accountants; “The implementation of audit committees by government entities both enhances financial transparency and controls…”

Purpose and Benefits of Audit Committee 5  Improve financial practices and reporting  Active role in fraud prevention  Ensure adherence to a system of internal control  Ensures independence of auditors (both internal and external)

SUHSD Audit Committee Roles/ Responsiblilties 6 Role:  Act on behalf of the governing board to provide independent recommendations to the Board of Trustees in the oversight of external and internal functions Responsibilities:  Review annual internal audit plan  Review results of internal and external audits & participate in preparation of recommendations  Review special audit requests  Review board policies to ensure effective financial reporting  Report to the Board of Trustee regarding status of previous audit recommendations

Internal Auditor Role 7  Independent review of control systems, policies, procedures  Liaison with all audits  Coordinates contract audit/external auditors  Training

High Risk Areas: 8 Cash handling/distribution  ASB  Principals Reports  Bus Passes  Nutrition  Commercial Warrants  Revolving Cash Compliance  Instructional Minutes  Fixed Asset Inventory  Special Audits/Requests  Attendance