School Finance Week 4 Part 5: Financial Audits

LISD uses the audit firm of Maxwell Locke and Ritter LLP.  LISD has recived the ASBO Certificate of Excellence in Financial Reporting and the GFOA Certificate of Achievement for Excellence in Financial Reporting (12 years running).

1. How is the external auditor selected?

            The external auditor is selected by the district Request for Qualifications – through bids.

2.  How does the auditor conduct the audit?

            This is a very tedious process.  The analysis components comprise of Government-wide financial statements, Fund financial statements and notes to the financial statements. The Government-wide financial statements provide long and short-term information about the district’s financial status.  Fund financial statements focus on individual components of the district’s operations. Notes to the statements provide additional information that is essential to a complete understanding of the data provided in the government-wide and fund financial statements.

3.  What does the audit conclude about district procedures and actions?

            The audit determines whether or not the district is in compliance with general accounting procedures as well as with Government Accounting Office standards.

4.  How are the results communicated?

            Audit results are communicated in a public meeting with the board.  They publish a C3 in the paper and also submit the audit to TEA electronically and by mail.  It is also submitted to the department of education and posted on the district website. It is very important that throughout this process the district maintains as much transparency as possible.