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(l) Internal auditor.- May or, in the case of a school district receiving annual federal, state, and local funds in excess of $500 million, shallemploy an internal auditor.

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The scope of the internal auditor shall not be restricted and shall include every functional and program area of the school system.

1. The internal auditor shall perform ongoing financial verification of the financial records of the school district, a comprehensive risk assessment of all areas of the school system every 5 years, and other audits and reviews as the district school board directs for determining:

a. The adequacy of internal controls designed to prevent and detect fraud, waste, and abuse.

b. Compliance with applicable laws, rules, contracts, grant agreements, district school board-approved policies, and best practices.

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c. The efficiency of operations.d. The reliability of financial records and reports.e. The safeguarding of assets.f. Financial solvency.g. Projected revenues and expenditures.h. The rate of change in the general fund balance.2. The internal auditor shall prepare audit reports of his or her

findings and report directly to the district school board or its designee.

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The SCOPE of the internal auditor shall not be restricted and shall include every functional and program area of the school system.

▷ Scope defines what will and will not be included in the engagement. It sets the boundaries within which the internal auditors will work. Internal auditors establish the engagement scope.

▷ Examples of factors considered when establishing the scope are time period and in-scope versus out-of-scope locations.

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The internal auditor shall perform…a comprehensive RISK ASSESSMENT of all areas of the school system every 5 years…

▷ Risk is the possibility of an event occurring that will have an impact on the achievement of objectives.

▷ Risk is commonly measured in terms of impact and probability.

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The internal auditor shall perform…OTHER AUDITS and reviews as the district school board directs…

COMPLIANCE

Review of financial and operating controls to assess conformance with established laws, rules, regulations, policies, procedures, contracts, and other requirements.

OPERATIONAL

Review of a function or process to appraise the efficiency and economy of operations and the effectiveness with which those functions achieve their objectives.

INFORMATION TECHNOLOGY

Review and testing of IT to assure the integrity of information. May be performed in conjunction with other audits since IT has been integrated in most organizational processes.

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The internal auditor shall…REPORT DIRECTLY to the district school board or its designee.

RECOMMENDATIONS:

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1. ESTABLISH AN INTERNAL AUDIT CHARTER.IT SHOULD INCLUDE INTERNAL AUDIT’S:

▷ MISSION & PURPOSE

▷ AUTHORITY

▷ RESPONSIBILITY

▷ INDEPENDENCE & OBJECTIVITY

▷ SCOPE

▷ QUALITY ASSURANCE & IMPROVEMENT PROGRAM

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RECOMMENDATIONS:2.

RECOMMENDATIONS:

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3. REVIEW THE AG’S RELEASED OPERATIONAL REPORTS

▷ Review the org. chart, audit plans, and audit agendas for the audit period to determine whether the internal auditor reported directly to the board or its designee as required by section 1001.42 (12)(l), F.S.

▷ Determine whether the internal auditor developed audit work plans based on annual risk assessments considering input from other finance and administrative management.

▷ Evaluate board policies and job descriptions of the internal audit department personnel to determine whether the department operated as intended by the board.

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Thank you for your time and attention!

You can find me at: Bladesl@duvalschools.org

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10RECOMMENDATIONS:Slide Number 12RECOMMENDATIONS:Slide Number 14Thank you for your time and attention!