6690-E

Audit Committee Charter

Audit Committee Authority

Pursuant to resolution, dated December 19, 2005, the Board of Education of the Yorktown Central School District (YCSD) has established an audit committee to assist the Board in the oversight of both the internal and external audit functions. The requirement to create an audit committee was established by Education Law §2116-c. According to §2116(4), the role of an audit committee shall be advisory and any recommendations it provides to the Board shall not be substituted for any required review and acceptance by the Board of Education. The District’s resolution also states that the committee shall be established annually and shall report directly to the Board.

Mission

The Board has established an audit committee to provide independent assistance to the Board in the oversight of the following matters:

Assist the Board in providing oversight of the internal and external audit functions, including the appointment of the internal and external auditors.
Oversee the competitive Request for Proposal (RFP) Process used to solicit quotations for the District’s annual external audit as required by law.
Review the scope and plan of the external audit annually
Review corrective action plans and necessary improvement based on audit findings and recommendations received from external and internal auditors annually.
Provide a communications link between the external auditors and the Board, and the internal auditors and the Board

Composition and Requisite Skills

The District’s Audit Committee is comprised of a minimum of three members and a maximum of five members including a minimum of two Board Trustees and a minimum of one resident from the community.

The Committee members collectively should possess the expertise and experience in accounting, auditing, financial reporting and school district finances needed to understand and evaluate the school district’s financial statements, the external audit of those statements and the district’s internal audit activities. Accordingly, the Audit Committee’s members should:

Possess the requisite skills and experience necessary to understand technical and complex financial reporting issues.
Have the ability to communicate with, and offer advice and assistance to, public finance officers and auditors.
Be knowledgeable about internal controls, financial statement audits and management/operational audits.

Duties and Responsibilities

The duties and responsibilities of the District’s Audit Committee includes the following:

External Audit Focus

Recommend selection of the external auditor to the Board.
Meet with the external auditor prior to commencement of the annual audit to review the engagement letter.
Review and discuss with the external auditor any risk assessment of the district’s fiscal operations developed as part of the auditor’s responsibilities under governmental auditing standards for a financial statement audit and federal single audit standards, if applicable.
Review the external auditor’s assessment of the district’s system of internal controls.
Receive and review the draft annual audit report and accompanying draft management letter and, working directly with the external auditor, assist the Board in interpreting such documents.
Make a recommendation to the Board on accepting the annual audit report.
Review any corrective action plan developed by the school district and assist the Board in the implementation of such plans.
Oversee the filing of the Auditor’s Management Letter and the District’s Management Response Letter with the NYS Comptroller’s Office.

Internal Audit Focus

Make recommendations to the Board regarding the appointment of the internal auditor.
Assist in the oversight of the internal audit function.
Review the annual internal audit plan and consult with the internal auditor to ensure that high risk areas and key control activities are periodically evaluated and tested.
Review the results of internal audit activities and significant recommendations and findings of the internal auditor.
Monitor implementation of the internal auditor’s recommendations by management.
Provide input on the performance evaluation of the internal auditor.

Administrative Matters

Hold at least one scheduled meeting annually and prepare minutes of all meetings.
Review the Audit Committee Charter and recommend revisions to the Charter as needed for approval by the Board.
Administer other related duties as prescribed by the Board.

Membership

The membership duties of the Yorktown Central School District (YCSD) Audit Committee include the following:

Good Faith – Members of the Committee shall perform their duties in good faith, in a manner they reasonably believe to be in the best interests of the Committee and the District with such care as a generally prudent person in a similar position would use under similar circumstances.

Independence – The following individuals would be precluded from being an Audit Committee member:

Someone currently or previously employed by the District during the past 12 months.
Someone currently or previously providing services contractually to the District during the past 24 months.
Someone of the immediate family (husband, wife & any children and their spouses) of an individual who is, or has been in any of the past 24 months, employed by the district, providing services contractually to the District or contractually related to the District as a board member or an administrator.
Someone who is a partner in, a controlling owner or an executive of, any for-profit business to which the district made, or from which the district received, payments that are or have been significant $5,000 to the district or the for-profit business entity in any of the past five years.

Confidentiality – During the exercise of duties and responsibilities, the Committee members may have access to confidential information. The Committee shall have an obligation to the district to maintain the confidentiality of such information.

Oath of Office - All non-board members, who are members of the Audit Committee, should be administered the district’s oath of office by the District Clerk and sign a confidentiality statement.

Meetings and Notification

The Yorktown Central School District (YCSD) Audit Committee shall hold at least one scheduled meeting annually and other meetings as needed. . An agenda of each meeting should be clearly determined in advance and the Audit Committee should receive supporting documents in advance, for reasonable review and consideration. Any member of the Board, who is not a member of the Audit Committee, may attend audit committee meetings if authorized by a resolution of the Board.

The Audit Committee shall prepare minutes of each meeting. At a minimum, the minutes will include the following:

Copies of the meeting agenda
Date, attendance and location of the meeting
Brief summary of the topics discussed
A record of all actions or recommendations agreed to by the committee

Decision-Making Process

A quorum constitutes a simple majority of the total membership and meetings will not be conducted unless a quorum is present. All decisions/recommendations shall be reached by consensus of those members present at the meeting. Consensus is defined as an acceptable solution that all can agree to support. If consensus cannot be reached, polling of the voting membership will take place and simple majority will rule.

Reporting Requirements

The Yorktown Central School District (YCSD) Audit Committee has the duty and responsibility to report its activities to the Board at its regularly scheduled Board meetings. The Audit Committee’s reporting requirements are to:

Report on the scope and breadth of committee activities so that the Boardis kept informed of its work.
Provide minutes of meetings which clearly record the actions and recommendations of the Committee.
Report on the accompanying management letter and their review of significant findings and recommendations of the internal and external auditors.
Report on suspected fraud or abuse or material defects in the internal control systems.
Report on material or significant non-compliances with laws or District policies and regulations.
Report on any other matters that should be disclosed to the Board.

Review of the Charter

The Yorktown Central School District (YCSD) Audit Committee shall assess and report to the Board on the adequacy of this Charter no less than an annual basis or as necessary. Charter modifications, as recommended by the Audit Committee, should be presented to the Board in writing for their review and action.