KPMG Peat Marwick LLP, a national certified public accounting firm, performed the district's annual financial and compliance audit for the past four years and issued acceptable audits with unqualified opinions. Auditors have included recommendations to strengthen various internal controls and operating procedures. Although law requires external audits, many Texas school districts also recognize the need for an internal audit function. TEA recommends districts maintain internal audit staff. Internal auditing is considered an essential function in both government and corporate organizations.
Internal auditors carry the work of external auditors a step further.
While external auditors are considered primarily with the financial aspects of the organization, internal auditors help management improve the organization's performance through compliance with organizational policies and procedures, evaluation of internal controls, and identification of inefficient, unproductive, and fraudulent processes. The Internal Audit unit was created to review and appraise the reliability and integrity of the district's internal control systems, evaluate the accuracy and reliability of its accounting and reporting systems, and determine the extent to which district resources are employed economically and efficiently. The senior auditor reports directly to the superintendent. For the 1999-2000 school year, the Internal Audit office plans to allocate 5 percent of its audit hours to assisting the external auditors. The Financial Services Department provides extensive assistance to the external auditors.