Services

A district-wide risk assessment is completed annually by the Internal Auditor. All areas of the district are considered. The audit universe is comprised of the district's departments, processes, services, and/or functions.

Internal Audit will meet with each department/area head to review the Risk Assessment process. All department/area heads are required to complete a Risk Assessment. The risk assessment requires identifying the department/area goal, as well as the more significant risk or events that could prevent them from accomplishing those goals. Each risk is then assigned an Impact Score, to determine the impact if the risk was realized and a Likelihood Score to determine how likely it is that this risk will be realized. The Total Risk Score for each risk is computed by adding the Impact Score and the Likelihood Score.

Department/area heads submit the completed risk assessment to their supervisor for review. Internal Audit combines all department/area risk assessments to construct the Annual District Risk Assessment. The Relative Risk Ranking is calculated and used, along with the risks and controls noted in the Risk Assessment, by Audit Management to determine the areas that will be audited the following year. The Annual Audit Plan will reflect the audits determined from the risk assessment as well as audits that are required by District guidelines. The Annual Audit Plan will be reviewed and approved by the Governance Committee. 

The same process is completed at a campus level to evaluate what areas will be audited during a campus audit. However, since all campuses are not audited every year, the campus risk assessment will be completed every 2-4 years.

Internal Audit used a risk-based methodology to schedule audits. The Annual Risk Assessments are used to determine which departments have the highest risk percentages. Those with the highest risk percentages will be audited first.  

For scheduling of campus audits, a risk-based methodology rubric is used to determine High/Moderate/Low risk campuses. The rubric is based off four criteria: materiality of annual cash receipts, time since last audit, change in principal or secretary/bookkeeper at the campus, and internal control environment at the campus. Data for all criteria is pulled from Munis, Internal Audit records, and conversations with the campus and rated a 1-3 with 3 being high risk. Those risks are then multiplied by weighted factors to get a risk percentage. The risk percentage is used to determine if the campus is High/Moderate/Low risk. High risk campuses are audited every 2 years, moderate risk campuses are audited every 3 years, and low risk campuses are audited every 4 years.  

All District operational departments may be subject to internal audit per local policy (CFC). However, Superintendent Regulations (CFD) require all campus activity accounts to be audited.

Audits may be performed in response to requests and provide the independent appraisal and assurances as described above.

Follow-up reviews are performed to appraise management of post audit corrective actions and provide assurance that implemented changes adequately resolved audit findings.  These reviews also ensure that upper management has been properly notified on the school district’s exposure related to unresolved audit findings.

An independent appraisal of school district operations is provided through the verification of accountability, physical safeguards, and valid use of the school district’s assets.

Internal Audit commonly addresses a variety of issues concerning school district policies, procedures and internal controls as questions arise.  Before agreeing to provide nonaudit services a determination should be made whether providing the service would create a threat to independence, either by itself or in aggregate with other nonaudit services provided.

Loss/fraud investigations are conducted to determine existing control weaknesses, assist in determining the amount of the loss, and recommending corrective measures to prevent subsequent recurrences.

Some believe that Internal Audit’s primary function is to uncover employee fraud or theft.  Actually, Internal Audit seeks to determine that the school district’s internal control function promotes efficient and effective processes and provides reasonable assurance that errors or irregularities will be detected during the normal course of operations.

The most successful audit projects are those in which the client (an organizational unit) and Internal Audit have a constructive working relationship.  Our objective is to have continued involvement at every stage, so that everyone involved in the audit process understands what we are doing and why we are doing it.