Windham Ashland Jewett Central School

WAJ Audit Finance Committee

Audit Finance Committee

 

RESOLVED, in compliance with Chapter 263 of the Laws of 2005 and Education Law section 2116-c, commonly referred to as the Five Point Plan Legislation, the Windham-Ashland-Jewett Central School District Board of Education shall hereby establish an audit committee to serve at the pleasure of the Board. The committee shall be established annually and shall report directly to the Board. BE IT FURTHER RESOLVED that:

1. The powers, duties and functions of such committees shall be determined by the Board, in accordance with applicable laws and regulations.

2. The committee is advisory only and shall have no power to act for the Board.

3. The committee shall consist of two Board of Education members and up to two community members as selected by the Board of Education. Neither school district employees nor their immediate relatives shall be eligible to serve on this committee.

4. The term of service will be one year unless reappointed by the Board, with appointment to the committee, along with its’ establishment occurring annually.

5. The superintendent retains the authority and duty to advise the board on all matters. It would be expected that the superintendent will take part in board discussions related to audit committee recommendations.

6. For the remainder of the 2005-06 school year, Board members A.J. Savasta and William Haltermann will remain on the Audit Finance Committee as appointed at the reorganizational meeting.

7. This resolution replaces all previous language establishing an Audit Finance Committee.

The WAJCSD established an audit finance committee at its’ regular BOE meeting on November 18 2004, and reorganized at a special BOE meeting on December 21, 2005. The Audit Finance Committee structure was established at a maximum of 5 members for the remainder of the 2005-06 school year, with two seats for BOE members, appointed to the post by the BOE president, and three seats for non-BOE members, up to three community members and the Superintendent of Schools. The Audit Finance Committee will have a Chairperson, one of the BOE members, and a recorder to establish written record of the topics discussed at the meetings where appropriate.

The Audit Finance Committees is an advisory group to the BOE. Their recommendations are not binding. Under the direction of the superintendent, the board retains control and legal authority over financial matters. For example, acceptance of an annual audit report prepared by an independent auditor shall not be deemed binding until accepted by the board. Specific duties the Audit Finance Committee is charged with include:

(i) Recommend external auditors to the board;

(ii) Meet with the external auditors prior to commencing an audit of the district;

(iii) Review and discuss with the external auditor any risk assessment of the district’s fiscal situation;

(iv) Receive and review the draft annual audit report and accompanying draft management letter; interpret these documents working directly with the board and the external auditor;

(v) Make recommendations to the board on accepting the annual audit report; and,

(vi) Review every corrective action plan developed and assist with implementation.

Additionally, the Audit Finance Committee, upon recommendation and direction of the superintendent, with BOE consent, may work as an advisory panel in areas such as annual budget preparation, review and presentation to the public.

At the annual District reorganization meeting, the composition and specific membership on the Audit Finance Committee, along with the goals for the committee will be established. The term of service for committee members will be renewable each year upon the discretion of the Superintendent and the BOE. Members may be removed or added to the committee as necessary by majority rule of the BOE.

Previous Resolution Authorizing the Audit Finance Committee on 11/18/04:

Resolved, upon the recommendation of the Superintendent, that the Board approves the formation of the Audit Finance Committee comprising two board members, William Haltermann and A. J. Savasta, and the Superintendent, John Wiktorko on motion by John Gulino and seconded by William Haltermann.

Potential AFC Policy Review Items for 2006-07

Although this list will be modified upon completion of our initial risk assessment conducted by an independent auditor (following the required SED and BOE independent audit function resolution action), the following items are areas of suggested review by the Comptroller’s Office and by recent advice from the NYSSBA Twelfth Annual School Law Conference.

Suggested Items not officially reviewed by BOE or AFC recently:

· Extra-classroom Activities Funds

· Petty Cash, collection and deposit

· Fraud Prevention

· ‘Whistleblowing’ Protection

· Bonding of Employees and Officers

· Code of Ethics

· Fundraising

Suggested items currently being reviewed by AFC:

· Travel and Conference Attendance and Expense Reimbursement

· Meals and Refreshments

· Credit Cards

· Internal Audit Function

· Claims Auditor

· Cell Phones

· Inventory and Capitalization of Assets

Suggested items already reviewed by the BOE and AFC:

· Audit finance Committee

· Budget Transfers

· Claims Processing

· Fiscal Accounting and Reporting

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