A presentation from internal auditors Lumsden McCormick highlighted the June 21 regular meeting of the Pioneer Board of Education.

Seth Hennard, CPA, presented an overview of the annual audit, to be conducted onsite over the summer. He said a major purpose of the state-mandated audit is to express opinions on the district's financial statements.  

Mr. Hennard said his firm would also provide recommendations for process improvements and internal controls in a written letter to Pioneer's fiscal officials.

He said his firm would not only test routine areas of the budget and fiscal practices, but also temporary processes and procedures such as those related to federal aid for Covid-19 and stimulus/recovery programs.

Mr. Hennard discussed the scope of the audit, which can include:

  • State aid, property and sales tax revenue, and related receivables/unearned revenues

  • Property and equipment, capital projects, related payables, and outstanding debt

  • Payroll

  • Compensated absences, pensions, and other post-employment benefits

  • Commitments and contingencies

  • Uniform guidance related to federal Covid-19 relief funds

  • Extraclassroom activities

Upon completion of the audit and a meeting of the audit committee, Mr. Hennard said his firm would be in contact with the district with regard to:

  • Auditor responsibility

  • Planned scope and timing

  • Compliance with ethics requirements regarding independence

  • Significant accounting policies, estimates, and financial statement disclosures

  • Difficulties encountered during the audit and disagreements with management

  • Uncorrected and corrected misstatements/adjustments

  • Circumstances affecting the form and content of the auditors’ report

  • Representations requested from management

  • Management’s consultation with other accountants

  • Other significant matters, findings, or issues