Oct
14
Who is doing the school audits?
Filed Under Uncategorized
Every school district is required to have an independent audit, but who are the people doing the audits? The simple answer is that it can be anyone who meets a certain set of criteria. This is Article XXII, Section 453 of the Oklahoma School Code:
Section 453. Standards - Qualifications of Accountants Liability Insurance.
A. The audit of each public school shall be made in accordance with generally accepted auditing standards as
defined by the American Institute of Certified Public Accountants and shall comply with the most recent Government
Auditing Standards issued by the United States Government Accountability Office, except in those instances in which such
standards are in violation of the laws of the State of Oklahoma or the rules and regulations of the State Board of
Education.
B. All accountants or partnerships of accountants, before entering into audit contracts required under this article,
shall satisfy the State Board of Education that such accountant or at least one partner of a partnership of accountants is
a resident of the State of Oklahoma with at least two (2) years of public accounting experience and is currently maintaining
an office in the State of Oklahoma. Any certified public accountant who is also an attorney licensed to practice law in
the state and has engaged in the private practice of law for at least two (2) years shall be deemed to meet the experience
requirement of this section.
C. Accountants or partnerships of accountants shall submit their application with the most recent peer review and
any letter of comment for approval or disapproval by the State Board of Education for the current audit year on or before
the first day of January of each calendar year. If and when the State of Oklahoma requires all auditors to be licensed by
the Oklahoma Accountancy Board, each accountant or partnership of accountants shall also satisfy the State Board of
Education that such accountants or partnership of accountants has been so licensed and is held in good standing by the
Oklahoma Accountancy Board during the period in which the audit was conducted before being placed on the list of
approved school auditors. Provided, that any accountant approved prior to the requirement of such license and who is
still in good standing with the State Board of Education shall continue to be eligible for approval and inclusion on the list
of approved auditors.
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D. All accountants or partnerships of accountants entering into audit contracts required under this article shall carry
a minimum of Two Hundred Fifty Thousand Dollars ($250,000.00) accountants’ professional liability insurance or the
total amount of the budget being audited, whichever is less. (70-22-104)
It’s interesting to note that nowhere in there does it state that the auditor cannot be related to a school board member or the superintendent. In fact, it would appear that a school board member or the superintendent could actually do the “independent” audit if they also happened to be a CPA with an office in Oklahoma.
Certainly there should be stricter guidelines in place for oversight of the more than $4-billion in tax dollars spent in Oklahoma’s public schools every year.
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GAO-07-162G Government Auditing Standards
3.07, and I qoute: “Auditors participating on an audit assignment must be free from personal impairments of auditors to independence. Personal impairments of auditors result from relationships or beliefs that might cause auditors to limit the extent of injury, limit disclosure, or weaken or slant audit findings in any way. Individual auditors should notify the appropriate officials within their audit organizations if they have any personal impairments of individual auditors include, but are not limited to, the following:
a. immediate family or close family member who is a director or officer of the audited entity, or, as an employee of the audited entity, is in a position to exert direct and significant influence over the entity or the program under audit;”
You are really really misinformed and refuse (apparently) to do your own research! The next time you decide to open your mouth you might want to consult a real “subject matter expert” in regards. It’s covered bud-covered with all kinds of accounting regulations. They can’t be an employee of the district, kin, or anything of the sort.