XYZ SCHOOLS
Internal Audit Department
Audit of School Activity Accounts FY xx
Audit Planning Memorandum
June, xxxx

The purpose of this Memorandum is to lay out in sufficient detail the key tenants of the audit of XYZ schools (XYZ) FY xx School Activity Accounts. They are as follows:

BACKGROUND:
Activity Account funds are defined as all monies collected and disbursed by personnel within a school for the benefit of the school or a school-sponsored activity. These funds are considered both budgeted and unbudgeted funds under the control and supervision of the School Board with the principal having responsibility as prescribed by the School Board. School Activity Accounts that received and expended monies during the year for various student activities (i.e., National Honor Society, Student Government, and Athletics) are required to have a budget on file. Trust Accounts (i.e., General Fund, Field Trips, and Foundation Grants) which received and expended funds for a specified purpose are unbudgeted funds.

OVERSIGHT/GOVERNANCE/ENABLING LEGISLATION:
This engagement will be performed in accordance with; the board approved internal audit plan, XYZ policy xx, State Statutes, various XYZ policy and procedures (i.e., which refer to all relevant State Statues and State Board of Education rules), State Administrative Code rule 1234, and the Financial and Program Cost Accounting and Reporting for the State Schools manual Chapter x published by the State Department of Education. Sound business practices shall be observed in all transactions.

KEY CLIENT PERSONNEL AND CONTACT INFORMATION:
The bookkeeper and the principal at each school, the XYZ Chief of Administration, and the Superintendent are responsible for the management of School Activity Accounts,

AUDITOR PERSONNEL:
The School Accounting Specialist will perform the audit field work under the supervision