R277-116-6. Audit Process

  (1) The Audit Director shall develop and recommend an audit plan to the Board and the audit committee based on the results of periodic risk assessments and audits.

  (2) Once approved and adopted by the Board, the Audit Director shall implement the audit plan.

  (3) At the initiation of an audit, the Audit Director shall, as necessary:

  (a) send an engagement letter to the governing board and local administrator of the agency subject to the audit; and

  (b) hold an entrance conference with the agency's governing board.

  (4) After conducting an audit, the Audit Director shall:

  (a) submit a preliminary draft audit report directly to:

  (i) the audit committee;

  (ii) the Superintendent; and

  (iii) the governing board of the audited agency;

  (b) hold an exit conference, if necessary, with the governing board and local administrator of the audited agency and administration to discuss the preliminary draft audit report; and

  (c) edit the preliminary draft audit report, as appropriate, based on feedback received.

  (5) The Audit Director shall submit a revised draft audit report directly to:

  (a) the audit committee;

  (b) the Board;

  (c) the governing board and local administrator of the audited agency; and

  (d) the Superintendent.

  (6) Within fourteen days of the Audit Director's submission of the revised draft audit report to the audited agency governing board, and after the exit conference, if applicable, the auditing agency's governing board shall:

  (a) provide a written response or comment on the draft audit report to the Audit Director and audit committee; or

  (b) file a written request for an extension to the audit committee setting forth:

  (i) the justification for the extension request; and

  (ii) the extension time necessary to provide the response;

  (7) Upon receiving written response and comment from the audited agency governing board, the Audit Director shall:

  (a) incorporate into the draft audit report the written response, if any, received from the audited agency governing board;

  (b) prepare Audit concluding remarks, if appropriate; and

  (c) submit the amended draft audit report to the audit committee for recommendation.

  (8) The audit committee may:

  (a) recommend an amended draft audit report for approval and adoption; or

  (b) send the amended draft audit report back to the Audit Director with instructions for additional review.

  (9) Upon recommendation from the audit committee on the amended draft audit report, the Board may:

  (a) approve and adopt an amended draft audit report as the final audit report; or

  (b) send the amended draft audit report back to the audit committee with instructions for additional review.