Internal Audit History

On April 20, 1978, the School Board, City of Richmond, adopted policy 3.19, Internal Auditors. The auditors’ duties were established as support to the accounting staff and to audit the student activity funds. They also performed other duties such as reconciliation of the payroll and cafeteria checking accounts, and prepared financial statements for the Food Services Department. The three auditors were assigned to the Department of Finance and reported to the Director.

The external auditors recommended more independence for the Internal Audit staff. The Internal Audit Department was established for Richmond Public Schools in 1987. An audit manager was appointed allowing the audit staff to perform more audit functions and internal
control system reviews for the school division. However, independence was still a concern. The audit manager and two auditors continued to report to the Director of Finance.

In 1988, the Internal Audit Manager began to report to the Assistant Superintendent for Business Services. Then in 1989, the manager reported directly to the Superintendent. On June 17, 1991, internal audit’s reporting line changed again. The Audit Manager reported
administratively to the Superintendent and functionally to the audit committee. At that time, the Internal Audit Department was auditing student activity funds, training the finance officers on the student activity fund accounting software, and advising schools on
any questions pertaining to the compliance of the rules and regulations of the School Board. On June 26, 1991, the School Board adopted the Internal Audit Charter. The charter identifies the purpose, authority, and responsibility of the Internal Audit Department. It establishes the Internal Audit authority to have full, free and complete access to any of the school division records, properties and personnel.

On September 20, 1994, the Budget/Audit Committee recommended that the audit manager report directly to the School Board. By this time, the department’s audits had expanded to include compliance audits, financial audits, and performance audits. The Department of
Internal Audit also examined and evaluated the adequacy and effectiveness of the division’s system of internal control and the quality of performance in carrying out assigned responsibilities.

On February 20, 1996, School Board policy 3.19 was revised and adopted to ensure the department’s independence, promote comprehensive audit coverage and assure adequate consideration of audit recommendations.

On June 21, 1999, the School Board, City of Richmond, adopted policy 7.58, Fraud, Waste, and Abuse Hotline. Internal Audit Services shall establish and maintain a fraud, waste and abuse hotline to which individuals may report fraud, waste and abuse of Richmond Public Schools
resources.