Tuesday, December 6, 2011

EDLD 5342 - Week 4, Part 5

In regards to the Annual External Financial Audit:
  • how is the external auditor selected?
    The auditor works directly for the board. The administration makes recommendations but the board hires the auditor.
  • how does the auditor conduct the audit?
    The audit is conducted over several months on site by the auditors. Work papers and various records are accumulated by the business office and reviewed by the auditors at their request. The report is written by the auditors offsite. The district writes the MD&A (management discussion and analysis) which is included in the audit. The audit consists of analytical as well as subjective analysis performed by trained CPA's.
  • what does the audit conclude about district financial procedures and actions?
    This states whether the financial statements present fairly the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the district as of year-end, and the respective changes in financial position and cash flow where applicable in conformity with U.S. generally accepted accounting principles.
  • how are the results communicated?
    The auditors present their findings to the Board in an open meeting. The Board then votes whether to approve or not approve the audit.

I was very interested to learn about the external financial audit. This yet another way that we can certify to the community that we are being good stewards of their money.

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