Be it resolved:

BCCPAC urge the Ministry of Education to make an amendment to the School Act to update and expand the requirements of school districts in reference to audit committees.

Purpose:

The principal function is to oversee the School District’s financial reporting process and its internal control structure and report its findings to the Board of Education. This task is facilitated by asking questions about the quality of work done by management, participating in the audit planning and reporting processes, understanding and reviewing the aspects of the operation that put the School District at risk, and the District’s preparedness to face that risk. It summarizes its findings and makes recommendations so that the Board can make informed decisions.

An audit committee shall:

• Review the audited financial statements and, where appropriate recommend approval of the audited financial statements by the Board;
• Oversee the internal control structure with a focus  on safeguarding districts assets;
• Review audit results with external auditor and follow up on the implementation of the auditor’s letter of recommendations;
• Review the nature and extent of other services provided by the auditor in relation to the auditor independence;
• Monitor the development of and changes to accounting principles and practices and financial reporting standards, and their impact on the School District’s financial reporting;
• Oversee engagement of external auditors including the terms of the audit engagement and appropriateness of proposed fees;
• Meet at least once per fiscal year with the external auditor at an In-Camera meeting, without any staff members or management present.

Meetings:

• The Audit Committee shall, meet at least four times a year and as often as necessary to adequately discharge their responsibilities
• The Audit Committee, when required, will report at public meetings.

Audit Committee Composition:

• The Audit Committee shall be comprised of one to three trustees appointed by the Chair of the Board of Education, two positions can be held by independent persons (these persons could be a Secretary Treasure and/or a Superintendent from another district or designated accountants or business people from the community).

• All members of the Committee shall be financially literate and at least one member must hold a professional accounting designation.
• The Committee Chair shall be one of the trustee members, appointed by the Chair of the Board of Education.
• Any trustee may attend any Audit Committee meeting as a guest.
• The District’s Secretary Treasurer and/or Assistant Secretary Treasurer, and Superintendent of Schools may attend some Audit Committee meeting as a guest, as requested by the members of the Audit Committee.
• All committee members shall commit to: ethical conduct, proper use of authority, decorum and professional conduct.

Carried at the January 2011 meeting.