Citizens of Brevard County

Transcription

1 2010 ANNUAL REPORT Audit Committee Activities Art Edwards Audit Committee Chairman April 2011

2 2010 ANNUAL REPORT SBBC Financial Oversight Audit Committee Members Finance Reporting Structure Internal/External Auditing External Auditors Internal Audit implementation Internal Auditors 2010 Highlights- Internal Audits Completed Corrective Actions & Remediation Status 2011 Internal Audits Objectives Audit Committee Goals & Highlights

3 AUDIT COMMITTEE EXTERNAL AUDITORS INTERNAL AUDITORS DISTRICT STAFF working together to maintain and increase public confidence with the fiscal and administrative responsibilities of the Brevard County School Board.

4 Audit Committee Members Art Edwards, Chairman District 1 Tim Skeldon, Vice Chairman District 4 Don Lusk District 2 Frank Zilaitis District 3 Wayne Cooper District 5 Dr. Barbara A. Murray, School Board Chair - Ex-Officio Dr. Brian T. Binggeli, Superintendent Sandra Demmon, Area III Superintendent

5 Reporting Structure Citizens of Brevard County School Board of Brevard County Superintendent School Board Management & Staff Audit Committee Internal & External Audit

6 External Auditing External auditing is the process not only of examining the most recently completed fiscal year financial statements, but also of testing the underlying accounting records and internal controls of the organization. An objective opinion is expressed regarding the fairness of the presentation and information contained in the financial statements. Internal Auditing Internal auditing is an independent objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

7 External Auditors Florida Auditor General is responsible for the external audit every 3 years which includes fiscal year Ernst & Young, LLP was selected via a competitive source selection process at a February 9, 2006 public meeting to interview and select an external auditor from a total of four firms. Contract term for audits for fiscal years (not including fiscal year 2007 and 2010). Fiscal year 2009 audit presented to Audit Committee in December 2009 with a Board approved budget of $130,000.

8 Internal Audit Implementation Functions with High Exposure and High Priority are included in the audit plan they are areas that Keep Senior Leadership and the Board up at night. Moderate Exposure High Exposure Risk Impact Risk Coverage Periodic Low Exposure Risk Coverage Monitoring only Moderate Exposure Risk Coverage High priority Risk Coverage Self-assessment/ rotational Likelihood of Occurrence

9 RSM McGladrey Internal Auditors Initial competitive source selection via request for proposal process. Negotiation of contract renewal through July 2014 discussed at the February 2011 meeting. Fiscal year 2011 budget approved $199,500. Regular reporting at quarterly meetings.

10 Cycle Audits: Full Time Equivalent Property Control Internal Accounts Maintenance Additional Quarter Mill Levy (Critical Operating Needs) Follow-up 2010 Highlights Internal Audits Completed Charter Schools: Overview Palm Bay Academy American Recovery and Reinvestment Act (ARRA) Individuals with Disabilities Education Act (IDEA) Title 1 Stimulus/Stabilization Funds

11 Corrective Actions & Remediation Status Follow-up procedures are conducted and reported to the audit committee annually Audits included Cycle Audits, Entity-Wide Audits and Individual Audits covering significant High Risk Areas Significant improvements through Lessons Learned & Sharing Best Practices. The total corrective actions reported since the inception of the audit committee is three hundred and nineteen. Eighty-eight percent of those have been validated and closed through the Formal Follow-up Process.

12 2011 Internal Audits Objectives Cycle Audits: Full Time Equivalent Property Control Charter Schools: Imagine of West Melbourne Patriot High School and K-8 Follow-up Palm Bay Academy Fraud Awareness Training Class Size Reduction Compliance Certification Internal Accounts 2011 Follow-up Completed In progress

13 2010 Audit Committee Goals & Highlights Reviewed School Board Policy pertaining to internal audit. Recommended the formal Audit Committee Charter for approval by the Board. Conducted an ongoing review of audit reports and recommendations to the School Board. 100% of 2010 Objectives Met 2011 Focus on Strategic Plan & Audit Committee Processes (begun in 2010) Half day off-site workshop and training to be conducted in September Continuity in Internal Audits through retention of RSM Goal of 100% completion of planned 2011 Internal Audits

14 Questions