Newburgh audit committee selects accounting policies and judgment-and-claims as internal-audit priorities

The Audit and Financial Committee of the Newburgh City School District met Tuesday, Feb. 11, and agreed to recommend that the board direct the internal auditor to focus this year on the accounting department’s policies, procedures and reporting and on judgment and claims.

Committee members said the recommendation follows issues raised in the district’s recent external audit report and is intended to align internal controls and reports with professional standards. A staff member offered to prepare a formal resolution for the full Board of Education meeting on Feb. 25; the committee agreed.

Committee discussion centered on scope and look-back periods. Members settled on auditing accounting policies and procedures for the current fiscal year and reviewing judgment-and-claims activity over a multi-year period. One committee member said a three-year look-back on judgment and claims would be useful; others noted that the accounting review is typically performed for the current fiscal year unless the board specifies otherwise.

Committee members noted the decision to nominate these two special areas is a preliminary selection; a board resolution will be required to authorize the internal auditor’s work formally. The staff member who manages the RFP and audit schedule said he would prepare the proposed resolution and return it to the board on Feb. 25.

The committee did not adopt a formal motion recorded with a roll-call vote during the meeting; members instead reached agreement on the items to propose to the board.

Next steps: staff will prepare a resolution for the Feb. 25 Board of Education meeting to authorize the internal auditor to proceed with the two selected focus areas.