EDLD 5342 Week 4; Part 5

Even though district financial experts are working to deal with the upcoming budget shortfall, I was able to interview our CFO (chief financial officer).  The information he shared was very helpful.  The external auditor is selected by requesting proposals from interested audit firms.  Once the proposals are received, the final selection is then made based on expertise, experience, staffing capabilities, and services offered.  Our district CFO stated that the auditor then conducts an interim audit during the year to make sure financial policies and procedures are followed.  The auditors pull sample transactions for verification.  The year-end audit is completed after the books are closed in August, which is the end of the fiscal year.  The internal control is audited throughout this time to look for any possible wrong doing.  The auditors then make conclusions and complete a report to determine how accurately financial procedures are being followed.  During this process, the auditors make recommendations, if necessary, on how the district can improve financial record keeping processes.  The findings are then reported to the district and shared with the Board of Trustees and TEA (Texas Education Agency.)

In reflecting on the information obtained during my interview with the CFO, it seems as though the audit process is very systematic and purposeful.  I believe that this is one of the most important components of the district’s financial system in order to identify areas that need improvement.  When you have people dealing with very detailed financial policies and procedures, there must be an awareness of the accountability that comes with legally required auditing.  Humans are going to make mistakes, and I believe being pro-active to identify potential problems before they occur is fiscally responsible.  Large districts have large numbers of people that deal with the finances, which requires sound financial procedures in order to eliminate misuse of funds.