Thought provoking response, Lilly, thanks.
I thought for a moment about calling Bob, but I realized I could have done that before posting this here. And then I thought some more, and wrote a response to your suggestion about getting the answer to my question.
After I wrote it, I previewed it, and found it upsetting even to myself. So I deleted what I wrote and decided to sleep on the matter. A better response was in my head this morning:
We have five members on the BoE. There are no qualifications for BoE service other than age, residency, and citizenship. So, at any given time any school board will be populated with people of widely differing backgrounds, talents, and capabilities, all subject to change over the three-year span of the terms of office of each member.
Even if some Board of Education somewhere had 4 CPA's each of whom worked for a different one of the Big Four accounting firms, and all of them either as auditors or audit managers, and the 5th member was either an attorney or a financier, as far as that board serving as their own audit committee I would say no, not an appropriate arrangement.
Wantagh has exceptional Board members. They are collectively responsible for well over $100 Million of combined revenue, operating expenses, short- and long-term debt, and other reportable financial obligations. Regardless of who the Board members are, individually and presently, I do not agree that they should continue to serve as their own audit committee.
The Wantagh Board of Education should form a citizen Audit Committee to replace themselves in that vital role.
Please feel free to disagree.
For the purpose of clarity, and especially for the benefit of any BoE members who joined the Board after 2006, below is the NYSED encapsulation of Chapter 263 of the Laws of 2005, (A6082-A/S5050-A)...
Audit Committee – Effective January 1, 2006
The law was amended to require every school district, except those employing less than eight teachers, to establish by board resolution an audit committee to advise and make recommendations to the board. The primary role of the audit committee is to assist the board in its oversight role in order to ensure financial accountability. The audit committee’s charge should be enumerated in a charter and should include:
(1) providing recommendations regarding the appointment of the external auditor and internal auditor for the district;
(2) meeting with the external auditor prior to commencement of the audit;
(3) reviewing and discussing with the external auditors their risk assessment of the district’s fiscal operations;
(4) receiving and reviewing the draft annual audit report and accompanying draft management letter, working directly with the external auditor, and assisting the trustees or board of education in interpreting such documents;
(5) making a recommendation to the trustees or board of education on accepting the annual audit report;
(6) reviewing every corrective action plan developed by the district in response to any findings identified in an audit report or management letter;
(7) assisting in the oversight of the internal audit function;
(8) reviewing the findings and recommendations of the external auditor and internal auditor;
(9) monitoring the school district’s implementation of such recommendations; and
(10) evaluating the performance of the internal audit function.
The members of the audit committee should collectively possess knowledge in accounting, auditing, financial reporting, and school district finances. The audit committee should consist of at least three members and it may be structured as a committee of:
(1) some board members,
(2) the whole board,
(3) all non-board members, or
(4) any combination, thereof.
Each member of the audit committee should be independent and not be employed by the school, or be an individual who previously provided or currently provides contractual services to the district, or be the owner of a company providing goods or services to the district, or be a family member of an employee or contractor providing services to the district. The member need not be a resident of the district, but is considered an officer of the district for purposes of Sections 3811 through 3813 of the Education Law related to liability for actions arising out of the exercise of authorized powers or the performance of duties of the position.
The audit committee should 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 should address or include:
(1) the activities of the audit committee;
(2) summary of the minutes of the meetings;
(3) significant findings brought to the attention of the audit committee;
(4) any indications of suspected fraud, waste, or abuse;
(5) significant internal control findings; and
(6) activities of the internal audit function.
(Source:
www.p12.nysed.gov/mgtserv/accounting/accountability_legislation05.htm)Regards
Chris Wendt