About This Resource
Imagine you open your inbox and find an email from a regulatory agency. They want to conduct an audit.
Would you feel confident that your school district could handle it?
If that email would make your heart skip a beat, you’re not alone. Many HR and payroll school district administrators would have
the same reaction. The complexity of school district employment and funding makes the idea of an audit daunting, to say the least.
In addition to complying with labor laws, the Family Medical Leave Act and the Affordable Care Act, school districts also manage complex budgets, grants and Title 1 activities that can come under scrutiny.
But with the right tools and internal processes, you can avoid some stress by preparing yourself should an audit occur.
Types of Audits that Affect School Districts
Since many schools are public institutions, federal and state agencies use audits to confirm and ensure appropriate usage of funds. To continue receiving funding, district administrators must track resource use and funding source allocation, and regularly review the information to ensure school and district activities funds are utilized in accordance with regulations.
The CPA Journal recommends referring to your state’s education agency (SEA) website as a resource for information about your state’s funding protocol and what data an audit might require.
“School districts are the largest category of state and local entities,” according to the CPA Journal. “This makes them subject to a great deal of public scrutiny, resulting in complex compliance and reporting requirements.”
This article will focus on how to prepare your district for an employment or funding-related audit.
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