Act 1563 of 1999 has established new requirements concerning school district audits. Effective June 15, 1999, all school districts using an independent CPA firm to perform their annual audit must file their annual audit with Legislative Audit and the Department of Education within eighteen (18) months of the end of the fiscal year. Additionally, audit contracts with independent CPA firms are required to contain a provision requiring the completion and filing of the audit report with Legislative Audit and the Department of Education within eighteen (18) months of the end of the fiscal year.
THE ABOVE PROVISION MUST BE IN YOUR CONTRACT FOR THE FISCAL YEAR 98/99 AUDIT.
The FY 98/99 audit and every audit thereafter will be subject to this requirement. The annual audit for FY 98/99 must be filed with Legislative Audit and the Department of Education no later than December 31, 2000. Any school district failing to comply with this requirement will automatically be placed in fiscal distress.
Rules and regulations implementing the new requirements and establishing procedures are being developed and will be presented to the State Board of Education in August.