Section TCS 7.08 - District financial audits(1) REQUIREMENTS FOR PROCUREMENT OF AUDIT SERVICES.(a) Each district board shall solicit bids or competitively negotiate with a certified public accountant for financial audits required under s. 38.12(5), Stats. The department of revenue acting under s. 73.10(5), Stats., may be considered a certified public accountant for purposes of this section. The bid specifications shall provide for renegotiation of the scope of the audit.(b) The criteria to be used in selecting a certified public accountant shall include at a minimum the expertise of the staff performing the audit, the cost of the audit, the time frame within which the audit can be performed, and the scope of the audit.(c) No certified public accountant shall be precluded from participating in the procurement process on the basis that the certified public accountant is providing audit services under s. 38.12(5), Stats., at the time of solicitation of bids or competitive negotiation for audit services.(2) AUDIT CONTRACTS. Each district board shall, for annual financial audits under s. 38.12(5), Stats., require the certified public accountant, to conduct the audit in conformance with the audit guide adopted by the board and generally accepted auditing standards.(3) ENGAGEMENT LETTER. For every audit, there shall be an engagement letter that shall include the following: (a) The scope of the audit.(b) An approximate beginning and completion date.(c) The number of reports to be delivered, to whom each report should be delivered, and the date that each report shall be delivered. No report shall be delivered later than December 31, following the end of the fiscal year for which the audit is performed.(d) The extent to which the certified public accountant is responsible for detecting defalcations and other similar matters, and the responsibility of the district to disclose any such matters to the certified public accountant.(e) Terms of compensation, including a provision for possible extended audit procedures not contemplated in the original engagement.(4) CONDUCT OF AUDIT. The audit shall be conducted on district premises at a mutually agreeable time, and the district shall provide adequate space to conduct the examination.(5) EXAMINATION OF INTERNAL CONTROLS. The auditor shall review the adequacy of systems of internal control, including controls over funds from sanctioned district student activities. If material weaknesses are noted, appropriate recommendations shall be reviewed with the appropriate district administrator, and transmitted to the district board by separate management letter or as part of the audit report.(6) PREPARATION OF FINANCIAL STATEMENTS. The district shall prepare appropriate financial statements for all account groups and fund types in accordance with generally accepted accounting principles.(7) TRANSMITTAL OF AUDIT AND MANAGEMENT LETTERS.(a) Each district board shall transmit to the board a copy of any management letter issued to the district as a result of an audit. Board audit staff, the legislative audit bureau, and such persons as mutually determined by the district board and the certified public accounting firm shall be allowed access to and copies of all working papers of the certified public accounting firm conducting the audit.(b) Each district board shall authorize the certified public accountant to communicate directly with the board.Wis. Admin. Code Technical College System Board TCS 7.08
Cr. Register, September, 1983, No. 333, eff. 10-1-83.