Current through August 26, 2024
(1) REQUIREMENTS
FOR PROCUREMENT OF AUDIT SERVICES.
(a) Each
district board shall solicit bids or competitively negotiate with a certified
public accountant for financial audits required under s.
38.12(5),
Stats. The department of revenue acting under s.
73.10(5),
Stats., may be considered a certified public accountant for purposes of this
section. The bid specifications shall provide for renegotiation of the scope of
the audit.
(b) The criteria to be
used in selecting a certified public accountant shall include at a minimum the
expertise of the staff performing the audit, the cost of the audit, the time
frame within which the audit can be performed, and the scope of the
audit.
(c) No certified public
accountant shall be precluded from participating in the procurement process on
the basis that the certified public accountant is providing audit services
under s. 38.12(5),
Stats., at the time of solicitation of bids or competitive negotiation for
audit services.
(2)
AUDIT CONTRACTS. Each district board shall, for annual financial audits under
s. 38.12(5),
Stats., require the certified public accountant, to conduct the audit in
conformance with the audit guide adopted by the board and generally accepted
auditing standards.
(3) ENGAGEMENT
LETTER. For every audit, there shall be an engagement letter that shall include
the following:
(a) The scope of the
audit.
(b) An approximate beginning
and completion date.
(c) The number
of reports to be delivered, to whom each report should be delivered, and the
date that each report shall be delivered. No report shall be delivered later
than December 31, following the end of the fiscal year for which the audit is
performed.
(d) The extent to which
the certified public accountant is responsible for detecting defalcations and
other similar matters, and the responsibility of the district to disclose any
such matters to the certified public accountant.
(e) Terms of compensation, including a
provision for possible extended audit procedures not contemplated in the
original engagement.
(4)
CONDUCT OF AUDIT. The audit shall be conducted on district premises at a
mutually agreeable time, and the district shall provide adequate space to
conduct the examination.
(5)
EXAMINATION OF INTERNAL CONTROLS. The auditor shall review the adequacy of
systems of internal control, including controls over funds from sanctioned
district student activities. If material weaknesses are noted, appropriate
recommendations shall be reviewed with the appropriate district administrator,
and transmitted to the district board by separate management letter or as part
of the audit report.
(6)
PREPARATION OF FINANCIAL STATEMENTS. The district shall prepare appropriate
financial statements for all account groups and fund types in accordance with
generally accepted accounting principles.
(7) TRANSMITTAL OF AUDIT AND MANAGEMENT
LETTERS.
(a) Each district board shall
transmit to the board a copy of any management letter issued to the district as
a result of an audit. Board audit staff, the legislative audit bureau, and such
persons as mutually determined by the district board and the certified public
accounting firm shall be allowed access to and copies of all working papers of
the certified public accounting firm conducting the audit.
(b) Each district board shall authorize the
certified public accountant to communicate directly with the board.
