EPISD internal audit office proposes $93,600 operating budget and 14-engagement plan for 2026–27

Myra Martinez, Chief Internal Auditor for the El Paso Independent School District (EPISD), presented the internal audit organization, a proposed operating budget of about $93,600 and a 14-engagement audit plan to the district’s Audit Committee on April 9.

Martinez said the department’s organizational independence stems from functional reporting to the Board of Trustees and safeguards such as board approval of the audit charter and audit plan, quarterly reporting and the board’s sole authority to appoint or remove the Chief Internal Auditor. "Our internal audit department's organizational independence comes from our functional reporting to the Board of Trustees," Martinez said.

The proposed operating budget covers audit-management software, data analytics, the district’s fraud, waste and abuse hotline and professional development. Martinez said the proposal represents roughly a 6.3% reduction from the current/prior year and is intended to align with district-wide funding constraints.

Martinez detailed staffing and qualifications: Internal Audit has seven budgeted auditor positions and one clerical position, with one vacancy at the time of the presentation. She said the filled auditor positions hold relevant professional certifications and that the team includes IT, operational and compliance audit expertise.

The FY 2026–27 audit plan was developed through a documented risk-assessment process that Martinez described as including management questionnaires (42 returned this year), leadership interviews, state and federal performance reports, external audit results, internal findings and consideration of emerging risks in public education. Risks are scored on a 1–3 scale and auditable units are ranked to prioritize engagements.

The proposed plan includes 14 engagements in total: six audits, one advisory engagement, six corrective-action follow-up reviews and one review focused on dyslexia coding. Martinez listed sample audit topics that will be pursued if approved, including contracted services, financial-services travel, monitoring graduation requirements (the district’s 90% rule), teacher-retention coding tied to state funding, PEIMS economic-disadvantage coding, software licensing and inventory/maintenance work.

Martinez said roughly 70–71% of available audit hours will be allocated to engagements (up slightly from 69% in the prior year) after accounting for leave, administrative duties, professional development and hotline management. The plan includes contingency hours so Internal Audit can pivot if district priorities change; Martinez said the charter and policy permit amending the plan and that she coordinates with district leadership to make adjustments when needed.

On the current-year status, Martinez reported that Internal Audit has completed 74% of projects in the existing audit plan (14 of 19 engagements) and that the remaining five engagements are in progress. She said vacancies have slowed report completion in some cases but that drafts and exit meetings are underway for work such as the activity funds audit and a special-education audit now in reporting.

Martinez described collaboration on a maintenance corrective-action plan (CAP) spearheaded after operational leadership changes: her office and maintenance staff worked together to review evidence and revise activities. That collaboration resulted in seven of nine CAP activities being closed, two activities being refined (training and access to the FMX maintenance work-order system) and two new activities being added. Martinez said Internal Audit will present the revised activities and timelines to district leadership before moving forward.

The audit plan will be submitted to the full Board of Trustees for approval at the April 21 board meeting; if approved, the plan would apply to the fiscal year beginning July 2026. The Audit Committee adjourned at approximately 5:27 p.m.