R277-113-5. LEA Audit Responsibilities

  (1) An LEA governing board shall designate board members to serve on an audit committee, consistent with Subsection 53G-7-401(1).

  (2) An LEA audit committee shall:

  (a) if required by Section 53G-7-402, establish an internal audit program that provides internal audit services for the programs administered by the LEA;

  (b) receive a report of the risk assessment process undertaken by the LEA management in collaboration with the internal audit department;

  (c) monitor the internal and external audit process by:

  (i) determining the appropriate scope of the independent external audit;

  (ii) determining the appropriate scope of non-audit services to be performed by the independent auditor;

  (iii) managing the audit procurement process in compliance with Title 63G, Chapter 6a, State Procurement Code;

  (iv) making recommendations to the LEA board on the results of the procurement process;

  (v) facilitating regular direct communication with independent external auditors;

  (vi) receiving independent external audit report and financial statements;

  (vii) ensuring management implements corrective actions;

  (viii) assessing performance of the independent auditors;

  (ix) reviewing disagreements between independent auditors and management;

  (x) prioritizing the internal audit plan based on risk;

  (xi) receiving audit reports from internal auditors, contractors providing internal audit services, and other regulatory bodies; and

  (xii) providing an independent forum for internal auditors, internal audit contractors, and other regulatory bodies to report findings of fraud, waste, abuse, non-compliance, or control weaknesses, particularly if management is involved;

  (d) conduct or advise the LEA board in an annual evaluation of internal audit personnel or contractors providing internal audit services;

  (e) ensure that issues and exceptions reported by internal auditors, or other regulatory bodies are resolved in a timely manner;

  (f) present the audit reports of external auditors, internal auditors or other regulatory bodies to the LEA board;

  (g) receive reports of reviews or audits conducted by the Superintendent and ensure appropriate corrective actions is taken in a timely manner; and

  (h) advise the local LEA board in the appointment of an audit director or in contracting services for internal audit services in accordance with Subsection 53G-7-402(3).

  (3)(a) An LEA shall follow the internal auditing requirements of Title 53G, Chapter 7, Part 4, Internal Audits.

  (b) An LEA internal audit director may not have responsibilities for management or operations of the LEA.

  (c) If an LEA internal audit director contracts with a consultant, any contractual agreement with the consultant shall comply with the LEA's procurement policy.

  (4) An LEA shall obtain all audits and financial reports required by Section 51-2a-201.