Mister Daniels, chair of the audit committee, told the Manatee County School Board on Jan. 24 that the district has received an engagement letter from Pervis Gray for next year’s external audit and that RSM will begin internal-audit work July 1.

The committee’s report matters because the district relies on outside firms for several audit functions: internal accounts reviews, a mandated sales-surtax audit and the state operational/financial audit. "We've got an engagement letter come to us from Pervis Gray, who is gonna be the outside external auditors for next year," Daniels said. He also told the board CRI remains finalizing a legal-name change before it will sign reports, and that the sales-surtax report is complete but still unsigned.

Daniels said CRI is finishing work under the current contract through June 30 and described the incoming internal-audit engagement: "First thing we're asking them to do when they come in is to do the risk assessment. Every 5 years you're required to do a full deep dive risk assessment." He said that RSM’s engagement letter is scheduled for the board’s March meeting and that RSM will begin work on July 1.

The audit committee also briefed the board on how the CRI firm has been restructured. In response to a board question, Daniels said: "CRI was purchased by an equity fund. What they've done is they've taken the pure audit part of their practice and they've got a CRI, Inc, which is the audit side. And everything else, consulting side, tax side, internal audit side is all under a new banner and a new umbrella." He said the district’s attorney and purchasing staff are reviewing the new legal entity and related paperwork before reports are signed.

Daniels told the board the auditor-general will conduct the annual financial audit this year, and that Pervis Gray will handle the internal accounts audit initially as a regional firm. He described a five-year sequence in which Pervis Gray will perform both internal and external audit functions as proposed.

Board members asked about timing and impact. Daniels said the sales-surtax report is in purchasing but cannot be released until the new CRI legal paperwork is completed; if CRI cannot finish by fiscal-year end the district may push some internal reporting to the July meeting. He also noted there will be follow-up reviews of charter schools’ reporting and consistency with new lease and revenue-recognition standards.

The committee reported a planned recognition of long-serving member Skip Wagner, who is retiring June 30, 2025, and noted the committee is recruiting replacements. No formal board vote was taken on personnel appointments or contract awards during the presentation; Daniels said engagement letters for Pervis Gray and RSM will be routed through purchasing and presented at upcoming board meetings for board action.

Ending: The audit committee presentation ended with committee members signaling continued oversight through the vendor transition and a planned board discussion in March and at the end of the fiscal year. The board recessed later in the meeting to an executive session on pending litigation.