DIE - LRSD Board Policy

Published by jackbgarvey on Mon, 07/29/2013 - 14:16




It is the policy of the Board of Education to conduct auditing and monitoring of District finances.  This will be accomplished through a yearly audit by an independent accounting firm or a legislative audit, the establishment of an audit committee, and through the continual services of the Internal Auditor.

The Board will execute a three-year contract with an accounting firm to conduct the annual audit.  The audit will be conducted in accordance with generally accepted auditing standards, government auditing standards, state department of education regulations, and state and federal regulations.

The independent auditor’s report will cover all funds of the Little Rock School District and will render an opinion on the financial statements prepared at the close of the fiscal year.

A copy of the annual audit report, approved by the Board, will be filed with the appropriate state agency.

Internal Auditor

The office of internal auditor is established to provide additional assurance of the soundness, adequacy, and extent of compliance with Board policies, financial systems and controls, and operational procedures and practices within the school district.


Audit Committee

The audit committee of the District will provide oversight of the District’s financial reporting processes, internal controls, the external audit process, and compliance with laws, regulations, District policies, rules and procedures.  

The audit committee will:  oversee the Request for Proposal process to recommend the selection of an external auditor to audit the District’s financial records as required by statute; review all services to be rendered by the external auditor; review the findings and communications regarding any financial issues provided by the external auditor; mediate any disagreements between District and the external auditor; review, modify and approve the District’s Internal Audit Plan; provide a communication link between the Board, Superintendent,  and the external auditor; and perform other responsibilities as requested by the full School Board.

The audit committee will be composed of one Board member, two representatives from the financial and audit community, two representatives from the business community and two community representatives. The Board member will be appointed by the Board president on an annual basis.  All other members will be appointed by majority vote of the Board to staggered three year terms that correspond to the District’s fiscal year.  The initial appointments will be randomly staggered so that two non-board appointees’ terms will expire each year. No term limits will apply. Replacements to the committee will be to fill the unexpired term of any retiring member.   

The Audit Committee will meet four times each fiscal year, with the authority to convene additional meetings as necessary.

The committee will report to the full School Board at a regularly scheduled School Board Meeting.



Revised: July 24, 2008

Adopted:  June 22, 2000

Legal Reference:  A.C.A. 6-20-311