PSD Audit Committee Minutes 08 10 2005

Deb Boileau

Description

Poudre School District Audit Committee MINUTES August 10, 2005 Members Present Debbie Bostak, Community Member, Chairperson Ross Cunniff, President, Board of Education Molly Janzen, Controller, Poudre School District Jim Sarchet, Assistant Superintendent of Business Services/CFO, Poudre School District Terri Sunset, Community Member Cheryl Zimlich, Co Member Updates Questions raised at the first Audit Committee meeting held July 12, 2005, were addressed. Molly Janzen reported that she had a conversation with attorney Tom Crabb related to the establishment of a board policy and/or resolution in relation to the Audit Committee. Tom suggested that the policy and/or resolution could include some language addressing Committee members’ liability/responsibility since that concern was expressed at the first meeting. He agreed that given the responsibilities of the Audit Committee as well as the Committee’s association with the Board of Education, a board policy and/or resolution would be advantageous. A summary of audit expenditures with Poudre School District was also distributed in response to a question asked at the July 12 meeting. Total expenditures paid to Sample and Bailey (the District’s auditors) during fiscal year 2005 was $114,645: $75,000 for the fiscal year 2004 audit, $8,360 for a HIPPA audit, and $31,285 for consultations/site visits/EAS audits and preliminary fiscal year 2005 audit work. Audit Committee Charter ...

Informations

• Publié par: Sawyung
• Nombre de lectures: 21
• Langue: English

Extrait

Preliminary Minutes

August 10, 2005

Page 1

Poudre School District Audit Committee

MINUTES

August 10, 2005

Members Present

Debbie Bostak, Community Member, Chairperson

Ross Cunniff, President, Board of Education

Molly Janzen, Controller, Poudre School District

Jim Sarchet, Assistant Superintendent of Business Services/CFO, Poudre School District

Terri Sunset, Community Member

Cheryl Zimlich, Community Member

Updates

Questions raised at the first Audit Committee meeting held July 12, 2005, were

addressed. Molly Janzen reported that she had a conversation with attorney Tom Crabb

related to the establishment of a board policy and/or resolution in relation to the Audit

Committee. Tom suggested that the policy and/or resolution could include some

language addressing Committee members’ liability/responsibility since that concern was

expressed at the first meeting. He agreed that given the responsibilities of the Audit

Committee as well as the Committee’s association with the Board of Education, a board

policy and/or resolution would be advantageous.

A summary of audit expenditures with Poudre School District was also distributed in

response to a question asked at the July 12 meeting. Total expenditures paid to Sample

and Bailey (the District’s auditors) during fiscal year 2005 was $114,645: $75,000 for

the fiscal year 2004 audit, $8,360 for a HIPPA audit, and $31,285 for consultations/site

visits/EAS audits and preliminary fiscal year 2005 audit work.

Audit Committee Charter

Following the updates, further discussion occurred regarding the Audit Committee’s role,

responsibilities, and structure. The provisions of the Sarbanes-Oxley Act were

considered and it was suggested there might be some best practices to follow.

Also discussed was the membership of the Committee. One idea presented was the

concept of vested versus non-vested interest in the District, and that perhaps it would be

beneficial to have non-vested membership (i.e., an attorney and/or a representative from

the bond industry). Since currently there is an even number of voting members (with Jim

Sarchet and Molly Janzen considered as ex-officio members), Ross will ask for a second

board member to participate as a member of the Committee.

Preliminary Minutes

August 10, 2005

Page 2

Further discussion related to the board’s objectives for the Committee took place. Ross

Cunniff indicated that the Board would be looking for recommendations from the

Committee as well as some indication of confidence in the processes and procedures

involved in the District’s financial accountability and reporting. A suggestion was made

to investigate the possibility of a Section 404 audit of internal controls. Pros and cons

related to auditor rotation were also discussed.

Suggestions for inclusion in the Audit Committee’s charter were: purpose of Committee,

annual performance evaluation of Committee, and duties and responsibilities. The

charter will also be reviewed annually. The expectation is that the charter will evolve

over time as the Committee further defines its objectives.

Prepare for Entrance Conference With Sample & Bailey

The last topic was to prepare for the next meeting on August 12, 2005, which will be an

entrance conference with the District’s independent external auditors in preparation for

the fiscal year 2005 audit. Committee members evaluated what questions should be

asked. Important to the Committee is obtaining information related to the auditors such

as: peer review of audit, auditor quality/qualifications, control procedures, and assurance

of auditor independence.

Specific questions might relate to such issues as: audit approach (i.e., sample size, risk

assessment); auditors’ opinions related to Sarbanes-Oxley, specifically partner rotation;

accounting policies; comparisons with other districts/industry standards, the auditors’

view of what the Audit Committee’s role is; and a letter grade the auditors would

associate with the District’s finance department. Also important to address with the

auditors is any knowledge of what is expected to be unusual or different in the upcoming

audit.

Future Meetings

Finally, the Committee discussed a tentative timeline for meeting during the remainder of

the fiscal year. After the meeting next Wednesday, August 17, 2005, 4:00 to 6:00 p.m.,

meeting dates will occur on Tuesdays, at 7:00 a.m., at the Johannsen Support Services

Center. Meetings are currently scheduled for the following days:

October 18, 2005

November 15, 2005

January 17, 2006

March 21, 2006

May 16, 2006