Audit

By law, every school district must have an independent auditor who reviews its financial records once the books are closed for a given school year. Each district must submit its audit report to the state controller.

The audit is an after-the-fact look at how the district operated. It tells the governing board and the public about the integrity of the district's financial systems and practices. Formally presented at a public meeting, the report includes a management letter that highlights any concerns or problems the auditors found- including serious "audit exceptions"- plus recommendations for addressing them. Districts must then provide information on whether the findings have been addressed and the conditions corrected.

An audit is an advisory document intended to help a district improve its financial management. The absence of audit exceptions does not neccessarily mean a district has no financial worries. Similarly, a long list of recommendations does not mean that district staff members are acting irresponsibly. The audit is intended to provide important information with which to help to evaluate a district's operations and its future financial health, but it is just one of many tools for doing that evaluations.

From Understanding School District Budgets January 2005