School Board Audit Committees Now Mandatory

Nova Scotia's school boards are now required by law to establish audit committees. The requirement was introduced in the 2002 Financial Measures Act to strengthen accountability for taxpayers' money that is spent on student education. The change in regulation was passed today, Nov. 21, to make it law.

The new regulation means that all boards will have a committee to focus specifically on the board's audit responsibilities. The committee members will have full access to all school board records including reports, documents, books and accounts. They will also have the opportunity to speak directly with third party reviewers like the board's auditors to ensure they are well- informed and can effectively monitor the board's internal controls.

The new regulation also recognizes that board members might not always have expertise in financial management. It gives the board the option of including one member on the committee who is not a board member to supplement that financial expertise.

"These new audit committees will provide another check to ensure that money that's meant for the classroom is spent in the classroom," said Education Minister Jamie Muir. "School board members will be in a better position to take immediate action at the earliest sign of financial trouble."

Some school boards have already started to create audit committees in anticipation of the new regulation. They will now have the terms of reference needed to ensure consistency provincewide.

"We have had a positive experience in the Strait with the new audit committee," said Ken Meech, CEO, Strait Regional School Board. "It's a good and welcome addition to our school board."

Staff from the Department of Education consulted chief financial officers from all the school boards on the new audit committee regulation.