P&C Accounting Manual > Procedures and Processes >

Audits

Appointing an auditor

You must appoint the auditor at the P&C's AGM or at a special meeting. Appoint your auditor from someone on the list below. Try to get someone who, as far as possible, is a local person aware of the activities of the P&C.

an accountant in public practice
a qualified accountant
a public sector employee or an employee of an insurance company, financial institution or other financial or commercial organisation who has the maturity, commercial skills and experience to examine the books and accounts of the association.

A P&C member may audit the P&C only with the approval of the Director–General of Education.

If possible, appoint an auditor in an honorary capacity. If this is not possible, negotiate and confirm the auditor's fees prior to appointment.

After the meeting at which an auditor is appointed, the P&C secretary must advise the district Executive Director (Schools) of the name, address and qualifications of the auditor.

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After completion of the audit

The financial statements, with all signed certificates appended, are to be presented to the P&C president. Members of the executive should read the documents before they are presented at the P&C AGM. Example 6 new window 59k shows the certificates that are appended to audited financial statements.

Qualified audit

The auditor has a duty to form an opinion on the financial statements. In some circumstances it may be necessary to qualify the audit report:

If there is a disagreement of opinion between the auditor and the P&C on any aspect of the account and the auditor is of the opinion that the statement should reflect or highlight these aspects.
If the auditor has been denied access to any information, thereby preventing the completion of the audit to the satisfaction of the auditor.
If the P&C has failed to keep proper accounting records or provide satisfactory explanations to questions raised.
If, in the opinion of the auditor, any of the financial reports are not in agreement with the P&C's accounting records.

Where the auditor concludes that no reliance can be placed on the accounting records because there is little or no internal control, the auditor may disclaim any overall opinion on the statements. Example 6a shows the type of disclaimer that an auditor may append when these problems have been encountered.

On receipt of a qualified audit report, the Treasurer must include a response addressing the reasons for the qualification when logging the audited financial statements with the District Office.

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