Utah Admin. Code R277-113-4 - LEA Audit Responsibilities
(1) The presiding
officer of an LEA governing board shall ensure that the members of the
governing board and audit committee are provided with training on the
requirements of Title 53G, Chapter 7, Part 4, Internal Audits, and this Section
R277-113-4 as part of the member on-boarding process.
(2) The training described in Subsection (1)
shall:
(a) comply with Title 63G, Chapter 22,
State Training and Certification Requirements; and
(b) use the online training and informational
materials provided by the Superintendent in accordance with Subsection
R277-113-3(3).
(3) An
LEA governing board shall:
(a) designate board
members to serve on an audit committee, consistent with Subsection
53G-7-401(1); and
(b) maintain the
following information on the LEA's website:
(i) names of the governing board members who
serve on the audit committee; and
(ii) if required by Subsection 53G-7-402(2);
(A) the name and contact information of the
internal audit director; and
(B) a
copy of the LEA's annual audit plan.
(4) An LEA audit committee shall:
(a) ensure the LEA obtains all audits,
agreed-upon procedures, engagements, and financial reports required by Section
51-2a-201 and Subsection 53G-5-404(4);
(b) provide 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 LEA administration is involved;
(c) ensure that corrective action on
findings, concerns, issues and exceptions reported by independent external
auditors, internal auditors, or other regulatory bodies are resolved in a
timely manner by LEA administration;
(d) present, as appropriate, information and
reports from the audit committee's meetings to the LEA board; and
(e) receive, as appropriate, reports of
reviews, monitoring, or investigations conducted by LEA administration and
ensure appropriate corrective action is taken in a timely manner.
(5) With regards to engagements
completed by an independent external auditor, an LEA audit committee shall:
(a) manage the audit procurement and quality
process in compliance with Title 63G, Chapter 6a, State Procurement Code and
Rule R123-5;
(b) ensure that the
independent external auditor has access to directly communicate with the audit
committee;
(c) review disagreements
between independent external auditors and LEA administration;
(d) consider LEA responses to audits or
agreed-upon procedures; and
(e)
determine the scope and objectives of other non-audit services, as
necessary.
(6) An LEA
audit committee shall if required by Section 53G-7-402:
(a) establish an internal audit program that
provides internal audit services for the programs administered by the
LEA;
(b) advise the LEA board in
the appointment of an audit director or in contracting for internal audit
services in accordance with Subsection 53G-7-402(3);
(c) conduct or advise the LEA board in an
annual evaluation of the internal audit director or contractors providing
internal audit services;
(d)
prioritize the internal audit plan based on risk;
(e) receive regular updates on the internal
audit plan and internal audit project progress; and
(f) receive final internal audit reports from
internal auditors or contractors providing internal audit services.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(1) The presiding officer of an LEA governing board shall ensure that the members of the governing board and audit committee are provided with training on the requirements of Title 53G, Chapter 7, Part 4, Internal Audits, and this Section R277-113-4 as part of the member on-boarding process.
(2) The training described in Subsection (1) shall:
(a) comply with Title 63G, Chapter 22, State Training and Certification Requirements; and
(b) use the online training and informational materials provided by the Superintendent in accordance with Subsection R277-113-3(3).
(3) An LEA governing board shall:
(a) designate board members to serve on an audit committee, consistent with Subsection 53G-7-401(1); and
(b) maintain the following information on the LEA's website:
(i) names of the governing board members who serve on the audit committee; and
(ii) if required by Subsection 53G-7-402(2);
(A) the name and contact information of the internal audit director; and
(B) a copy of the LEA's annual audit plan.
(4) An LEA audit committee shall:
(a) ensure the LEA obtains all audits, agreed-upon procedures, engagements, and financial reports required by Section 51-2a-201 and Subsection 53G-5-404(4);
(b) provide 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 LEA administration is involved;
(c) ensure that corrective action on findings, concerns, issues and exceptions reported by independent external auditors, internal auditors, or other regulatory bodies are resolved in a timely manner by LEA administration ;
(d) present, as appropriate, information and reports from the audit committee's meetings to the LEA board; and
(e) receive, as appropriate, reports of reviews, monitoring, or investigations conducted by LEA administration and ensure appropriate corrective action is taken in a timely manner.
(5) With regards to engagements completed by an independent external auditor, an LEA audit committee shall:
(a) manage the audit procurement and quality process in compliance with Title 63G, Chapter 6a, State Procurement Code and Rule R123-5;
(b) ensure that the independent external auditor has access to directly communicate with the audit committee;
(c) review disagreements between independent external auditors and LEA administration ;
(d) consider LEA responses to audits or agreed-upon procedures; and
(e) determine the scope and objectives of other non-audit services, as necessary.
(6) An LEA audit committee shall if required by Section 53G-7-402:
(a) establish an internal audit program that provides internal audit services for the programs administered by the LEA;
(b) advise the LEA board in the appointment of an audit director or in contracting for internal audit services in accordance with Subsection 53G-7-402(3);
(c) conduct or advise the LEA board in an annual evaluation of the internal audit director or contractors providing internal audit services;
(d) prioritize the internal audit plan based on risk;
(e) receive regular updates on the internal audit plan and internal audit project progress; and
(f) receive final internal audit reports from internal auditors or contractors providing internal audit services.