Audit committee hears update on Albuquerque Public Schools external audit; board raises questions about Perkins findings

The Albuquerque Public Schools Board of Education Audit Committee on Aug. 26 heard a status update on the district's external audit, the audit of the district's foundation and audits of charter schools the district authorizes, and asked staff to produce more information about state findings tied to the Perkins grant program.

The update was presented by Renette Apodaca, the district's chief financial officer; Mark Turnbull, executive director of accounting; and auditors Sheila Quintana Filosa and Laura Beltran Schmitz of CliftonLarsonAllen. Apodaca told the committee the district had received a Certificate of Excellence in Financial Reporting from the Association of School Business Officials International. "This award represents a significant achievement and reflects the district's commitment to transparency and high quality financial reporting," she said.

Sheila Quintana Filosa of CliftonLarsonAllen said the audit firm has "wrapped up most of our interim testing" and that many requested items from the district are due Sept. 8, when the firm plans to begin reviewing financial-statement balances that affect schools. She said the firm was on site this week working on single-audit items tied to a draft compliance supplement released by the Office of Management and Budget, and that work on the district's foundation and charter-school audits is progressing on schedule.

Quintana Filosa also said the foundation audit procedures have begun and are expected to start in earnest in early September. She said CliftonLarsonAllen has been on site at charter schools and is coordinating weekly with Roberta Velasquez at APS; charter-school staff have been providing requested documents with two- to five-day turnaround so far.

Board member Josefina Dominguez asked for clarification after learning earlier that day that the state had reported 14 findings from its review of the district's Perkins grant program. "What, if anything, in trying to execute my duties as an audit committee member, could have done or should have asked?" Dominguez asked. Committee chair Courtney Jackson asked Dominguez to consolidate the information she had and submit a request for information so staff and the auditors could respond with details.

District staff explained that William W. and Josephine Dorn Community Charter School had voluntarily closed in the prior fiscal year and that a final audit was required to close out remaining financial transactions. Quintana Filosa said those close-out transactions would comprise the final audit work for that charter school.

The committee did not take any formal action on the audits at the meeting; it received the update, directed staff to respond to a follow-up RFI about the Perkins-related findings, and confirmed its next meeting for Sept. 23 at 5 p.m. virtually.

Background: CliftonLarsonAllen was engaged to audit the district, its foundation and component units that include authorized charter schools. The firm cited a draft compliance supplement from the Office of Management and Budget as guiding work on single-audit procedures; the firm said further work will proceed when the official supplement is released.

The meeting began with the committee adopting the meeting agenda and approving minutes from the July meeting by roll-call votes before the audit update was presented. The committee adjourned after the update and Q&A concluded.