H. AUDITING
1. External Audits
H.1.01 Independent Auditor:
An independent auditor shall be approved and retained by the Board. Following retention, the independent auditor shall function in cooperation with, but independent of, the Chief Financial Officer and staff.
H.1.02 Scope of Services:
The independent auditor is engaged to conduct an examination of the financial statements of the System in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General, and to express an opinion as to the fairness of the financial statements in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, the independent auditor shall also issue a report on his/her consideration of the System’s internal control over financial reporting, and his/her tests of its compliance with certain provisions of law, regulations, contracts and grants.
The independent auditor may meet with the Board Audit Committee to discuss the audit plan, results and other related matters.
The independent auditor may not be engaged to perform the non-audit services listed below:
i. Bookkeeping;
ii. Financial information systems design, implementation or operation;
iii. Appraisal or valuation services;
iv. Actuarial services;
a. Internal audit outsourcing services;
v. Management functions or human resources services;
vi. Investment banking services; and
vii. Legal services
H.1.03 Term of Service:
The Board shall periodically competitively procure independent audit services.
The Board shall engage independent auditors for a maximum period of five years. However, the Board shall retain the right to terminate the engagement at any time, upon due notice.
An independent auditor engaged in a current term is eligible to respond to a request for proposal for a subsequent term.
The Board, in consultation with the Chief Financial Officer and staff, shall evaluate the independent auditor annually.
H.1.04 Annual Audit Report Filing:
An annual audit report for the fiscal year ending August 31 shall be filed with the Coordinating Board on or before January 1 following the close of the fiscal year for which the audit was made. A minimum of three copies of the audit shall be submitted to the Coordinating Board. Copies of the audit shall be submitted to any other agency or individual requesting such report.
LSCS Policy Manual Section adopted by the Board of Trustees on August 7, 2008