1350- Audit Committee
| Policy: Audit Committee | Policy Number: 1350 |
| Date of Original Policy: 07/10/2002 | Date Revision Adopted: 07/08/2020 |
| Reviewed by Policy Committee: 06/17/2020 | Date of Next Review: 01/25/2023 |
| Replacement of Policy Number: |
The Audit Committee may consist of:
• The Board of Education as a whole
• A subcommittee of the Board of Education
• An Advisory Committee that may include, or be composed entirely of persons other than Board members if, in the opinion of the Board, such membership is advisable to provide accounting and auditing expertise.
• A subcommittee of the Board of Education
• An Advisory Committee that may include, or be composed entirely of persons other than Board members if, in the opinion of the Board, such membership is advisable to provide accounting and auditing expertise.
The Audit Committee shall consist of at least three (3) members who shall serve without compensation, but shall be reimbursed for any actual and necessary expenditure incurred in relation to attendance at meetings. Employees of the District are prohibited from serving on the Audit Committee. Members of the Audit Committee shall be deemed School District Officers, but shall not be required to be residents of the School District.
Persons other than Board members who serve on the Advisory Committee shall be independent and shall not:
• Be employed by the District
• Be an individual who within the last two years provided or currently provides services or goods to the district
• Be the owner of or have a direct and material interest in a company providing goods or services to the district
• Be a close or immediate family member of an employee, officer or contractor providing services to the district. A close family member shall be defined as a parent, sibling or nondependent child and an immediate family member shall be defined as a spouse, spouse equivalent or dependent (whether or not related).
• Be an individual who within the last two years provided or currently provides services or goods to the district
• Be the owner of or have a direct and material interest in a company providing goods or services to the district
• Be a close or immediate family member of an employee, officer or contractor providing services to the district. A close family member shall be defined as a parent, sibling or nondependent child and an immediate family member shall be defined as a spouse, spouse equivalent or dependent (whether or not related).
The role of the Audit Committee shall be advisory and any recommendations it provides to the Board shall not substitute for any required review and acceptance by the Board of Education. The responsibilities of the Audit Committee include the following:
• Provide recommendations regarding the appointment of the External (Independent) Auditor for the District
• Meet with the External (Independent) Auditor prior to commencement of the audit
• Review and discuss with the External (Independent) Auditor any risk assessments of the District’s fiscal operations developed as part of the Auditor’s responsibilities under governmental auditing standards for a financial statement audit and federal single audit standards if applicable
• Receive and review the draft annual audit report and accompany draft management letter and working directly with the External (Independent) Auditor, assist the Board of Education in interpreting such documents
• Make a recommendation to the Board on accepting the annual audit report and
• Review every corrective action plan developed by the School District and assist the Board in its implementation
• Meet periodically with internal auditor and claims auditors to review reports.
• Meet with the External (Independent) Auditor prior to commencement of the audit
• Review and discuss with the External (Independent) Auditor any risk assessments of the District’s fiscal operations developed as part of the Auditor’s responsibilities under governmental auditing standards for a financial statement audit and federal single audit standards if applicable
• Receive and review the draft annual audit report and accompany draft management letter and working directly with the External (Independent) Auditor, assist the Board of Education in interpreting such documents
• Make a recommendation to the Board on accepting the annual audit report and
• Review every corrective action plan developed by the School District and assist the Board in its implementation
• Meet periodically with internal auditor and claims auditors to review reports.
The Rules and Regulations also increase the Committee’s duties and responsibilities. Specifically, “The Audit Committee shall develop and submit to the Board for approval, a formal written charter which shall include, but not be limited to, provisions regarding the committee’s purpose, mission, duties responsibilities and membership requirement. In addition, the Rules and Regulations, require that:
The Audit Committee shall hold regularly scheduled meetings and report to the Board on the activities of the audit committee on an as needed basis, but not less than annually. The report shall address and include, at a minimum;
• The activities of the Audit committee
• A summary of the minutes of the meetings
• Significant findings brought to the attention of the audit committee
• Any indication of suspected fraud, waste or abuse
• Significant internal control findings, and
• Activities of the internal audit function.
• A summary of the minutes of the meetings
• Significant findings brought to the attention of the audit committee
• Any indication of suspected fraud, waste or abuse
• Significant internal control findings, and
• Activities of the internal audit function.
Additional responsibilities of the Audit Committee include; assisting in the oversight of the Internal Audit function including, but not limited to, providing recommendations regarding the appointment of the Internal Auditor, reviewing significant findings and recommendations of the Internal Auditor; monitory the School District’s implementation of such recommendations; and evaluation of the performance of the Internal Audit Function.
The Audit Committee may conduct an Executive Session pursuant to Public Officers Law Section 105 pertaining to the following matters:
• To meet with the External (Independent) Audit prior to commencement of the audit:
• To review and discuss with the External Independent Auditor any risk assessment of the District’s fiscal operations developed as part of the Auditor’s responsibilities under governmental auditing standards for a financial statement audit and federal single audit standards if applicable; and
• To receive and review the draft annual audit report and accompanying draft management letter and working directly with the External (Independent ) Auditor, assist the Board of Education in interpreting such documents.
• To review and discuss with the External Independent Auditor any risk assessment of the District’s fiscal operations developed as part of the Auditor’s responsibilities under governmental auditing standards for a financial statement audit and federal single audit standards if applicable; and
• To receive and review the draft annual audit report and accompanying draft management letter and working directly with the External (Independent ) Auditor, assist the Board of Education in interpreting such documents.
Any Board member who is not a member of the Audit Committee may be allowed to attend an Audit Committee Meeting, if it does not result in a quorum of the Board.
Education Law Sections 2116-c and 3811-3813
Public Officers Law Sections 105(b), 105(c) and 105(d)
8 New York Code of Rules and Regulations (NYCRR) Section 170.12 (d)