Board approval dates:

• Created on: 03/05/2024
• Most recent update: 06/07/2024

Each year, the board shall approve the appointment of an independent auditor to conduct an audit of the college’s finances and financial systems, including a Title IV compliance audit.

A regular independent financial audit serves several important purposes for the Academy:

• Ensure Accuracy and Integrity: The audit verifies the accuracy and integrity of the college’s financial statements. This is crucial for maintaining transparency and accountability to stakeholders, including alumni, students, faculty, staff, patients, regulators, and members of the public.
• Detect and Prevent Fraud: Auditors are trained to detect signs of fraud or financial mismanagement. An audit can help uncover irregularities and prevent future occurrences, protecting the Academy’s reputation and assets.
• Assess Internal Controls: The audit evaluates the effectiveness of the college’s internal controls and financial management processes. This assessment helps identify weaknesses or areas for improvement, allowing the college to strengthen its controls and reduce the risk of errors or fraud.
• Ensure Compliance: Like most other accredited educational institutions, the Academy is subject to various laws, regulations, and accounting standards. E.g., the Department of Education requires specific targeted annual audits of Title IV student loans administered by the Academy. The audit ensures that the organization is compliant with these requirements, reducing the risk of penalties or legal issues.
• Provide Assurance to Stakeholders: An independent audit provides assurance to stakeholders that the Academy’s financial statements are reliable and accurate. This can increase confidence in the organization and its financial management practices.
• Support Decision-Making: Audits provide valuable information to the college’s leadership, helping them make informed decisions about financial management, resource allocation, and strategic planning.

Council of Nonprofits - What is an Independent Audit?