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Board debates next audit: internal accounts, P-cards or timekeeping; cost and timing divide members
Summary
Board members and staff debated which area should receive the district's single outside audit next year. Some members urged auditing internal accounts and P-cards as highest risk; staff recommended waiting until new procedures are trained and implemented. The board agreed to pursue a timekeeping audit starting in September and revisit payroll in February.
A prolonged discussion at the Clay County School Board May 26 workshop centered on which topic the board should commission for next year's outside audit.
Board member Miss Hansen urged the board to prioritize internal accounts and payment card (P-card) controls, saying those areas are "very high on the risk side for us" and that other districts repeatedly advised internal accounts as the place to find savings. She also flagged previous audit findings: "Flaggler Hospital was unable to produce background checks for our mental health counselors. All right, we're not saying they didn't do it, but they were unable to produce it," she said, describing a red finding that preceded the district's decision not to renew that contract.
District staff and other board members pressed for caution. Staff described a comprehensive rewrite of the internal-accounts handbook with 14 chapters, scheduled principal training in June and July, and said the district will only start external audit work in September to give the new processes time to settle. "If you have them come in and audit it, I'm simply going to say to the auditors that's great that you find that, but we've already corrected it," a staff member said, arguing that auditing a brand-new process risks producing predictable findings tied to the rollout rather than underlying misconduct.
Cost was a recurring theme: multiple participants said outside audits typically run about $60,000–$75,000 each; the board discussed that doing both timekeeping and payroll would roughly double that cost and could be unaffordable under current budget constraints. One board member noted a prior cyber-security audit was lower cost.
Outcome: The board reached consensus to schedule a timekeeping audit to start in September (auditors would then likely complete fieldwork toward February) and to revisit a possible payroll audit in February if the budget allows. The internal audit committee will continue to advise the board on priorities and structure; some board members suggested increasing board presence at internal-audit committee meetings to support volunteer auditors.
Why it matters: External audits shape where the district invests limited oversight dollars and can uncover process improvements or compliance gaps that affect how public funds are managed. The board’s choice balances risk focus, value for money and the timing of local reforms.
Next steps: Staff will request cost detail from the audit firm (RSM was cited in interviews) and confirm whether timekeeping and payroll audits can be combined; the board will revisit the question in February and the committee will offer prioritized recommendations.
