Financial Audits

I interviewed the Director of Finance and the Superintendent of Orangefield ISD to learn more about the Annual External Financial Audit process.  An auditor is selected by the Board of Trustees.  The Board selects independent auditors based on proposals submitted.  Mr. Welch, the Superintendent, stated that there aren’t very many local firms that still audit school districts.  When the auditor is selected, the school district can use them as long as they want without getting proposals each year.  According to Mrs. Hickman, the Director of Finance, the auditors test various aspects of finance based on samples.  Sample size would depend on the scope of work they predetermine based on information the school district provides.  The auditors come to the district during the summer for interim work and again after the close of the fiscal year.  They review the general ledger, special programs and grants.  They spend quite a bit of time with personnel from the business office.  They also select some personnel records to review along with their payroll records.  The audit reveals any areas that need to be corrected.  Mr. Welch stated that when he became Superintendent, he hired a Finance Director that was a CPA, which was a recommendation from a previous audit.  The bookkeeper and payroll clerk previously did not have much oversight because the Assistant Superintendents did not have a finance background and were not able to adequately oversee the business department.  Mrs. Hickman stated that if we receive a clean audit opinion, which we always do, it means that they have found no material problems with our procedures.  The results of the audit are shared with the Superintendent and the Director of Finance first.  Then the auditor gives a report to the Board that is in a public meeting.  The audit is sent to TEA ad the district must publish a summary of the audit in the local newspaper.

I believe that Mrs. Hickman has been a very positive addition to our staff.  She is very knowledgeable about school finance and has helped me immensely while taking this course.  Mr. Welch is also very knowledgeable in school finance and has been very helpful.