CFO recommends one-year extension with current auditor; board presentation requests approval at upcoming meeting

Dana Shaw Moseley, Lancaster ISD's finance chief, presented the engagement letter and internal-control overview for the district's financial audit during the March 27 session and asked the board to consider a one-year extension with the incumbent auditing firm Whitney Penn.

Moseley summarized the district's internal controls for accounts payable, procurement and payroll and said the finance team follows board procurement policies and applicable state and federal laws, including the Texas Education Code. She described a three-way invoice verification process (purchase order, invoice, receiving documentation) and segregation of duties designed to prevent fraud or misuse.

Moseley said Whitney Penn has served as Lancaster ISD's auditor since 2021 and that the district previously issued a competitive RFQ in 2022 (the RFQ closed with four respondents after an extension). She said the district is requesting approval at the upcoming board meeting for a one-year audit engagement with a not-to-exceed fee of $67,000.

Asked about the possibility of another extension, Moseley said she will investigate and bring options back to the board but indicated a preference to continue with Whitney Penn in the near term. No formal board vote on the engagement was recorded in the March 27 work session transcript.

Trustees asked procedural questions about accounting basics such as the difference between a general ledger and a check and about controls for checks and system-generated payments; Moseley described the ERP-based workflow and said the district does not use physical checkbooks for ad hoc payments and that blank checks are not possible in the system.

The item was presented for board consideration and staff recommended bringing the engagement letter to the board meeting for action.