Audit timeliness of school district audits

We examined 36,367 school district audit results from the Federal Audit Clearinghouse data base for the five-year period from 1998 to 2002. We found that school districts have a high level of internal control and grant compliance findings. School districts are slow in filing their financial reports and delayed financial reports are positively associated with larger district size, government auditors, sole practitioner auditors, and problems with internal controls and qualified reports. We found a negative association between audit delay and a low-risk classification. Continuing material weaknesses in financial reporting and grant compliance could result in funding losses for those districts not meeting proper financial reporting standards. Timelier reporting would identify problem areas sooner and promote remedial action and greater compliance.