Escambia County School District staff on Friday presented three related items to the school board: the audit office’s five-year quality assurance review, a recommendation from the district’s audit committee for a new internal-audit director, and the outcome of a binding arbitration with FEMA over disaster debris reimbursement.

The audit office’s external review found the office “generally complies with the standards,” and recommended formalizing an annual internal assessment process so the office conducts a mini-quality check each year. “The highest level of conformity that you can get is that you generally comply with the standards,” a staff presenter told the board, adding the reviewers recommended more frequent, formalized annual self-assessments.

Appointment recommendation: The audit committee interviewed seven candidates over two days and recommended McKenzie Lane, a former member of the audit office who the committee said holds a bachelor’s and master’s degree and a certified fraud examiner credential. The committee told the board Lane had prior experience auditing school internal accounts, performing inventories and conducting exit conferences with principals. Lane addressed the board and said, “The district feels like home,” and expressed gratitude to the interview and audit committees. The audit committee chair, Todd Wilson, and other committee members were present to support the recommendation. The board did not take a formal appointment vote during the workshop; the item was moved from the regular agenda for discussion and will appear for formal approval at a later meeting.

FEMA arbitration: District staff also reported that the district pursued binding arbitration with FEMA after the agency questioned more than a million dollars in debris costs. The arbitration panel found for the district and ordered FEMA to obligate the funds in the Florida Public Assistance system. “They dismissed all of FEMA's administrative arguments… when it came to the merits they said, ‘Look, you’ve documented your debris so many different ways… you’re entitled to all of it,’” a district presenter said. The staff added there is no precise timeline for when the remaining obligations and subsequent reimbursements will flow but described the arbitration outcome as a favorable final step before the standard invoice-and-reimbursement process.

Why it matters: The quality-assurance finding supports the audit office’s reliability; the recommended director is an internal candidate familiar with district operations; and the arbitration result could make more than $1 million in federal reimbursement available to the district once FEMA enters the order and the district completes the normal reimbursement paperwork.

Board input and next steps: Several board members thanked outgoing audit director David Bryant for his service. The audit committee’s recommendation will be placed on the board’s regular meeting agenda for formal action. Staff said they will develop the annual internal-assessment process recommended by the reviewers and return the management letter and district response to the board as required by standards.