2007                      5572

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          Non-Instructional/Business

          Operations

/EB

 

 

 

SUBJECT:     AUDIT COMMITTEE

 

            On an annual basis, at the annual meeting, an Audit Committee shall be established by board resolution. The Audit Committee may consist of:

 

a)      The Board of Education as a whole;

 

b)      A subcommittee of the Board of Education; or

 

c)      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.

 

Persons other than board members who serve on the advisory committee shall be independent and shall not:

 

1.            Be employed by the District;

 

2.            Be an individual who within the last two (2) years provided, or currently provides, services or goods to the District;

 

3.            Be the owner of, or have a direct and material interest in, a company providing goods or services to the District; or

 

4.            Be a close or immediate family member of an employee, officer, or contractor providing services to the District. A "close family member" is defined as a parent, sibling or nondependent child; an "immediate family member" is a spouse, spouse equivalent, or dependent (whether or not related).

 

         The Audit Committee shall consist of at least three (3) members who should collectively possess knowledge in accounting, auditing, financial reporting, and school district finances. They 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.

 

         The role of the Audit Committee shall be advisory unless the Audit Committee consists of at least a quorum of board members, and any recommendations it provides to the Board shall not substitute for any required review and acceptance by the Board of Education.

 

         The Audit Committee shall develop and submit to the Board for approval a formal, written charter which includes, but is not limited to, provisions regarding the committee's purpose, mission, duties, responsibilities and membership requirements.

 

 

(Continued)

 

2007                      5572

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Non-Instructional/Business Operations

/EB

 

 

 

SUBJECT:     AUDIT COMMITTEE  (Cont'd.)

 

         The Audit Committee shall hold regularly scheduled meetings and report to the Board on the activities of the Committee on an as needed basis, but not less than annually. The report will address or include at a minimum:

 

a)            The activities of the Audit Committee;

 

b)            A summary of the minutes of the meeting;

 

c)            Significant findings brought to the attention of the Audit Committee;

 

d)            Any indications of suspected fraud, waste, or abuse;

 

e)            Significant internal control findings; and

 

f)              Activities of the internal audit function.

 

         The responsibilities of the Audit Committee include the following:

 

a)      Provide recommendations regarding the appointment of the External (Independent) Auditor for the District;

 

b)      Meet with the External (Independent) Auditor prior to commencement of the audit;

 

c)      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;

 

d)      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;

 

e)      Make a recommendation to the Board on accepting the annual audit report; and

 

f)       Review every corrective action plan developed by the School District and assist the Board in its implementation.

 

Corrective Action Plan

 

         Within ninety (90) days of receipt of the report or management letter, the Superintendent shall prepare a corrective action plan approved by the Board in response to any findings contained in:

 

 

(Continued)

 

2007                      5572

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Non-Instructional/Business Operations

/EB

 

SUBJECT:     AUDIT COMMITTEE  (Cont'd.)

 

a)            The annual external audit report or management letter;

 

b)            A final audit report issued by the District's internal auditor;

 

c)            A final report issued by the State Comptroller;

 

d)            A final audit report issued by the State Education Department; or

 

e)            A final audit report issued by the United States or an office, agency or department thereof.

 

The corrective action plan must be filed with the State Education Department, and if appropriate, must include the expected date(s) of implementation. To the extent practicable, implementation of the corrective action plan should begin no later than the end of the next fiscal year.

 

         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; monitoring the School District's implementation of such recommendations; and participating in the 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:

 

a)      To meet with the External (Independent) Auditor prior to commencement of the audit;

 

b)      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

 

c)      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, including an executive session, if authorized by a board resolution. However, if such board member's attendance results in a meeting of a quorum of the full Board, any action taken by formal vote may constitute official board action.

 

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)

Adoption Date: January 14, 2008