PSD Audit Committee Minutes 07 12 2005

Deb Boileau

Description

Poudre School District Audit Committee MINUTES July 12, 2005 Members Present Debbie Bostak, Community Member 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 Notebook Contents Information presented in the Audit Committee notebook was reviewed. Such items included a copy of the initial Insight to the Board of Education regarding the establishment of an Audit Committee within Poudre School District; the Government Finance Officers Association (GFOA) Recommended Practice; some sample Colorado Audit Committee board policies; various articles, guides and checklists; and specific district audit information related to the upcoming 2005 fiscal year audit. Review of Insight—Objectives, Timeline, Committee Membership The Committee had much discussion related to the purpose and role of an Audit Committee and how such a committee would operate within Poudre School District. One of the major objectives agreed upon is that the Committee would assist the Board of Education in fulfilling its financial oversight responsibilities by providing for an independent and objective party to monitor the District’s financial and compliance reporting process and internal control system. Jim Sarchet suggested that additionally, he would welcome input from the Committee related ...

Informations

• Publié par: Odwou
• Nombre de lectures: 55
• Langue: English

Extrait

Preliminary Minutes

July 12, 2005

Page 1

Poudre School District Audit Committee

MINUTES

July 12, 2005

Members Present

Debbie Bostak, Community Member

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

Notebook Contents

Information presented in the Audit Committee notebook was reviewed. Such items

included a copy of the initial Insight to the Board of Education regarding the

establishment of an Audit Committee within Poudre School District; the Government

Finance Officers Association (GFOA) Recommended Practice; some sample Colorado

Audit Committee board policies; various articles, guides and checklists; and specific

district audit information related to the upcoming 2005 fiscal year audit.

Review of Insight—Objectives, Timeline, Committee Membership

The Committee had much discussion related to the purpose and role of an Audit

Committee and how such a committee would operate within Poudre School District. One

of the major objectives agreed upon is that the Committee would assist the Board of

Education in fulfilling its financial oversight responsibilities by providing for an

independent and objective party to monitor the District’s financial and compliance

reporting process and internal control system. Jim Sarchet suggested that additionally, he

would welcome input from the Committee related to how to improve upon processes and

procedures.

Cheryl Zimlich asked a question related to potential liability for members of the Audit

Committee should an issue arise. Ross Cunniff suggested that an option might be for the

Board of Education to indemnify the Committee. Molly Janzen stated that she would

research the issue and respond back to the Committee.

Also discussed was the Committee’s role in confirming and assuring the independence of

the District’s auditors. Such items as focus of audited transactions, sample sizes, etc.,

were thought by the Committee to be appropriate questions to ask the auditors in the

upcoming entrance conference conducted prior to the 2005 fiscal year audit. A question

related to the current cost of our audit was presented, and Molly Janzen agreed to report

this information back to the Committee.

Preliminary Minutes

July 12, 2005

Page 2

At this point, the Committee added one additional meeting to the suggested timeline.

That meeting will occur prior to the entrance conference with the auditors. The

Committee agreed that it would be beneficial to individually review materials, then meet

to discuss conclusions made in that review process.

One other item discussed was whether a board policy establishing the Audit Committee is

necessary. Ross Cunniff suggested consulting with Tom Crabb, PSD attorney, to

determine what should be considered in such a policy.

Committee Chair

The Committee discussed electing a chairperson of the PSD Audit Committee. Molly

Janzen suggested that it would not be appropriate for either her or Jim Sarchet to be the

chair of the committee. Ross Cunniff recommended that since the Audit Committee

reports to the Board of Education, he should not be considered for the chairperson. As a

result of the discussion, Debbie Bostak agreed to represent the Audit Committee as the

chairperson of the Committee.

Establish Charter

Members of the Committee agreed that review of materials and more discussion needed

to occur before establishing a detailed charter. Molly Janzen suggested that the AICPA’s

Toolkit provides a generic template that might be utilized and altered as necessary this

first year. The Committee will discuss this item at the next meeting.

Fraud/Anonymous Submission

Molly Janzen brought up the idea of establishing some sort of confidential and

anonymous mechanism to encourage employees to report potential fraud. Establishing a

hotline was one idea offered. It was also suggested that perhaps this hotline could be

used for more than just potential fraud reporting. The Committee agreed that this is an

area to consider after further review and discussion.

Future Meetings

Wednesday, August 10, 2005 – 4:00 to 6:00 p.m., Johannsen Support Services Center

Committee members only will meet to discuss issues and to prepare for the entrance

conference with District auditors.

Wednesday, August 17, 2005 – 4:00 to 6:00 p.m., Johannsen Support Services Center

Committee members will meet with District’s independent auditors, Vicki Sweet and

Steve Collins, Sample & Bailey, Certified Public Accountants, P.C.