Committee moves R277-113 on LEA fiscal and auditing policies to full board

The Utah State Board of Education finance committee voted to continue R277-113, the Local Education Agency fiscal and auditing policies rule, on first reading and forward it to the full board for continuation and approval on second and final reading.

Policy changes presented by staff remove an "oversight" category and clarify that the internal audit department will provide training and materials previously referenced to the superintendent. "Historically, the internal audit department has been delivering and continues to deliver and provide these training materials for LEAs of all sizes," said Sam Urie, school finance director, describing the change as a clarification of practice rather than a new requirement.

Members asked whether state code requires an internal audit function for large LEAs. Debbie Davis (Chief Audit Executive) clarified the statutory requirement: LEAs with more than 10,000 students must have an internal audit function and every LEA must maintain an audit committee. "Yes, Utah code specifies for the LEA internal audit that, if you have more than 10,000 students, you are required to have the internal audit function," Davis said.

Vice Chair Cole Kelly moved the continuation. The committee recorded the motion and approved it unanimously; staff will forward the rule to the full board for the next reading. The committee noted member Boggess was absent for earlier votes but no formal objections were raised for this motion.