The general purpose of the Audit and Finance Committee is to review and monitor the district external audit process and to provide outside professional expertise to the Board of Education and Superintendent. The Committee will review and monitor the timing and scope of internal and external audit activities, the implementation of effective internal controls by district management and thorough management response to audit findings on a timely basis. The Committee may review the district’s provisional and final budgets, interim financial reports and other financial documents as needed and as deemed appropriate by the Committee. It will make recommendations to the board regarding the adequacy of such documents and processes and the need for changes to them.
The members of the Audit and Finance Committee are as follows:
- Two Board of Education Trustees appointed by the full Board of Education;
- Three community representatives who are trained and experienced in financial practice.
Outside members should have direct management experience such as a chief executive officer, chief financial officer, chief technology officer, chief auditor or similar responsible role. Prior experience on a corporate audit and finance committee is highly desirable. All persons appointed to the Audit and Finance Committee must meet the district’s conflict of interest requirements.
The members of the Audit and Finance Committee will designate a Chairperson and Vice-Chairperson from among themselves. The Chairperson and Vice-Chairperson shall be a community representative.
Terms of Service
Each Committee member will be appointed to a two-year term (see Appendix A for current Committee list). The terms will be staggered and overlapping: one board member’s term will coincide with two of the community representatives and the second board member’s term will coincide with the remaining community representative. There are no term limits.
Appointments of board members to the committee may be changed each year but a two-year commitment is encouraged to provide continuity.
All committee members will serve at the pleasure of the Board of Education.
Scope of Activities and Duties of the Board of Education Audit and Finance Committee
Scope of Activities
The Audit and Finance Committee will review on an annual basis the audit plans, audit scope and findings of the district’s internal and external auditors, and recommend whether the external auditors should be retained or changed. The Audit and Finance Committee will designate a member to participate with staff in the audit exit meeting.
The Committee may review the district’s provisional and final budgets, interim financial reports and other financial documents as needed and as deemed appropriate by the Committee. It may make recommendations to the board regarding the adequacy of such documents and processes and the need for changes to them.
The Audit and Finance Committee is advisory in nature. Its recommendations regarding audit exceptions and other items will be provided in writing to the Board of Education and the Superintendent.
The Committee shall review the Scope of Activities and Duties of the Committee and recommended changes to the Board of Education if such changes would improve the Committee’s ability to do its job effectively.
The Committee will meet 3-4 times a year. Additional meetings may be scheduled as recommended by staff, requestedby the committee itself, and/or as requested by the Board of Education.
The Board Office is responsible for arranging staff and clerical services to assist the committee.
Responsibilities of Committee Members
- Attend all meetings in person or electronically.
- Review the agenda and advance materials thoroughly prior to each meeting.
- Maintain the confidentiality of certain legal and personnel issues as required by law.
- Maintain ethical standards regarding conflict of interest.
- The board trustees appointed to this committee are encouraged to pursue training in financial oversight and governance.
Responsibilities of Committee Chairman
- Establish the Committee’s annual schedule of meetings.
- Set the agenda for each meeting with the advice of designated district staff and committee members.
- Maintain an open line of communication with the district’s external auditors and with district management regarding issues within the purview of the committee.