Audit Committee Authority

The Board of Education of the Pine Bush Central School District unanimously adopted a resolution at its December 13, 2005 meeting establishing an audit committee to assist the Board of Education in the oversight of the internal and external audit functions. The requirement to create an audit committee was established by Education Law § 2116-c (4). According to § 2116-c (4), the role of an audit committee shall be advisory and any recommendations it provides to the Board shall not be substituted for any required review and acceptance by the Board of Education. The District’s original resolution also states that the district’s audit committee shall consist of the Board of Education as a “whole” in accordance with Chapter 263 of the Laws of 2005. Any recommendations established by the audit committee will be brought forward and acted upon during regular session of the Board of Education. In July 2007, the Board of Education decided to change the makeup of the committee. Effective with the 2007-08 school year, the audit committee will consist of three (3) board members and approximately four (4) community members.

Mission 

The Board of Education of the Pine Bush Central School District has established an audit committee to provide independent assistance to the Board in the oversight of the following matters:

• Assist the Board in providing oversight of the internal and external audit functions, including the appointment of the internal and external auditors.
• Oversee the competitive Request for Proposal Process (RFP) used to solicit quotations for the District’s annual external audit.
• Review the scope, plan and coordination of the external audit.
• Review corrective action plans and necessary improvement based on audit findings and recommendations received from external and internal auditors.
• Provide a communications link between the external and internal auditors and the Board.

The audit committee will provide oversight of the internal and external audit functions, oversee the competitive request for proposal (RFP) process for the external auditor, oversee the competitive request for proposal (RFP) process for the internal auditor, review the scope and plan of the external audit, review corrective action plans and make necessary improvements based upon recommendations from internal and external auditors.

Composition  and Requisite  Skills 

The Pine Bush Central School District Audit Committee is comprised of three (3) Board members and approximately four (4) community members. Each audit  committee  member  will  serve  a  one-year term.

The audit committee members collectively should possess the expertise and experience in accounting, auditing, financial reporting and school district finances needed to understand and evaluate the school district’s financial statements, the external audit of those statements and the district’s internal audit activities.  Accordingly,  the audit committee’s  members  should:

• Possess  the  requisite  skills  and  experience  necessary  to  understand  technical   and   complex financial  reporting issues.
• Have the ability to communicate with, and offer advice  and  assistance  to,  public  finance  officers  and auditors.
• Be knowledgeable about internal controls, financial statement audits  and  management/ operational  audits.

• Seek explanations and advice from the internal auditor, external auditor, internal claims auditor, school business official, and any other staff and consultants as needed to provide an understanding of the technical and complex financial reporting requirements and allow for informed and comprehensive decisions about internal controls, financial statement audits and management/operational audits.

Duties  and Responsibilities

The duties and responsibilities of the Pine Bush Central School District Audit Committee include the following:

External  Audit Focus

• Recommend  selection of the external  auditor to the Board of Education.
• Meet with the external auditor prior to commencement of the audit to  review  the  engagement letter.
• Review and discuss with the external auditor any risk assessment of the district’s fiscal operations developed as part of the auditor’s responsibilities under governmental auditing standards  for a financial  statement  audit and  federal single audit standards,  if applicable.
• Review the external auditor’s assessment  of the district’s  system of internal    controls.
• Receive and review  the  draft  annual  audit  report  and  accompanying  draft  management  letter and, working directly with the external auditor, assist the Board of Education m interpreting  such documents.
• Make a recommendation  to the Board  of Education  on accepting the annual  audit  report.
• Review any corrective action plan developed by the school district and assist the Board of Education  in the implementation  of such plans.

Internal Audit Focus

• Make recommendations to the Board of Education regarding  the  appointment  of  the  internal auditor.
• Assist  in the oversight  of the internal audit function.
• Review the annual internal audit plan to ensure that high risk areas  and key  control activities are periodically evaluated and tested.
• Review the results of internal audit  activities and significant  recommendations and findings of the internal auditor.
• Monitor  implementation of the internal auditor’s recommendations  by management.
• Provide input on the performance evaluation of the internal   auditor.

Administrative Matters

• Hold regularly scheduled meetings.
• Administer other related duties as prescribed  by the Board of Education .
• Review and revise the Audit Committee Charter.

Membership

The membership duties of the Pine Bush Central School District Audit Committee include the following:

• Good Faith – Members of the Committee shall perform their duties in good faith, in a manner they reasonably believe to be in the best interest of the Committee and the District  with  such  care as a generally prudent  person  in a similar position  would  use under  similar circumstances.
• Independence – The following individuals would be precluded from being an audit committee member:
• Someone currently  or previously  employed  by the District during the past  five years.
• Someone currently or previously providing services contractually to the District during the past five years.
• Someone who is a partner in, a controlling owner or an executive of, any for-profit business to which the district made, or from which the district received, payments that are or have been significant [$10,000] to the district for the for-profit business entity in any of the past five years.
• Confidentiality – During the exercise of duties and  responsibilities,  the  Committee  members may have access to confidential information. The Committee shall have an obligation to the district to maintain the confidentiality of such information.
• Oath of Office – All non-board members, who are members of the audit committee, should be administered  the  district’s oath of office by the District  Clerk.

Meetings and Notification 

The Pine Bush Central School District Audit Committee shall meet a minimum of two (2) times  each year. An agenda of each meeting should be clearly determined  in  advance  and  the  audit committee should receive supporting documents in advance, for reasonable  review  and  consideration. Any member of the Board of Education, who is  not  a member  of  the  audit  committee,  may  attend  audit committee meetings  if authorized  by a resolution  of the  Board.

The audit committee shall prepare minutes  of each  meeting.  At  a minimum,  the minutes  will  include the following:

• Copies of the meeting agenda
• Date, attendance and location of the meeting
• Brief summary of the topics discussed
• Copies of materials discussed or presented at the meeting
• A record of all actions or recommendations agreed to by the committee

Decision-Making  Process 

All decisions shall be reached by consensus of those members present at the meeting. Consensus is defined as an acceptable solution that all can agree to support. If consensus cannot be reached, polling of the voting membership
will take place and simple majority will rule. A quorum constitutes a simple majority of the total membership and meetings will not be conducted unless a quorum is present.

Reporting  Requirements 

The Pine Bush Central School District Audit Committee has the duty and responsibility to report its activities to the Board of Education. Periodic written reports of audit committee activities are an important communication link between the audit committee and the Board on key decisions and responsibilities. The Audit committee’s reporting requirements are to:

• Report on the scope and breadth of committee activities so that the Board of Education is kept informed of its work.
• Provide minutes of meetings and work sessions which clearly record the actions and recommendations of the Committee.
• Report on their review of the District’s draft annual audit report and accompanying management letter and their review of significant findings and recommendations of the internal auditor.
• Report on suspected fraud or abuse or material defects in the internal control systems.
• Report on material or significant non-compliances with laws or District policies and regulations.
• Report on any other matters that should be disclosed to the Board of Education.

Review  of the Charter

The Pine Bush Central School District Audit Committee shall assess and report to the Board of Education on the adequacy of this Charter no less than an annual basis or as necessary. Charter modifications, as recommended by the Audit committee, should be presented to the Board of Education in writing for their review and action will be acted upon by the Board of Education.

Annual Review

• Charter recommended by Audit Committee & Submitted & Accepted by BOE – 11/14/06 Meetings Revised Charter reviewed by the B. OE. – February 26, 2008
• Revised Charter reviewed by Audit Committee – August 4, 2009; Submitted to BOE at August 25, 2009 meeting with no changes recommended; BOE Accepted Audit Committee’s recommendation for  no changes at this time.
• Charter reviewed by Audit Committee on January 27, 2014 meeting with no changes recommended; Submitted to BOE to on April 8, 2014.
• Charter reviewed by Audit Committee on June 20, 2016. Submitted to BOE on June 28, 2016.
• Charter reviewed by Audit Committee on June 18, 2018. Submitted to BOE on June 26, 2018
• Charter reviewed by Audit Committee on April 29, 2019. Submitted amended to BOE on May  14, 2019
• Charter reviewed by Audit Committee on Oct. 5, 2020. Submitted to BOE Oct. 13, 2020 (actual Nov 24, 2020)
• Charter reviewed by Audit Committee on Oct. 12, 2021. Submitted to BOE Oct. 26, 2021
• Charter reviewed by Audit Committee on Oct. 11, 2022. Submitted to BOE Oct. 25, 2022.
• Charter reviewed by Audit Committee on Oct. 2, 2023/Submitted to BOE Oct. 10, 2023.
• Charter reviewed by Audit Committee on Oct. 1, 2024/Submitted to BOE Oct. 8, 2024.
• Charter for review by Audit Committee on June 16, 2026 / Submit to BOE June 23, 2026
• Charter for annual review by Audit Committee on October 6, 2026/ Submit to BOE October 13, 2026