CHICAGO PUBLIC SCHOOLS

Memo
To: To Whom It May Concern From: Tomas Janulevicius CC: Lenard Moody Date: 16 October 2012

After three months of my internship at Chicago Public Schools Audit Services I was able to develop a general understanding of the organization and its functions. Being the third largest school district in the United States, Chicago Public Schools (CPS) has a vision to transform lives by building a foundation for excellence and a pathway for every member of the CPS community to dream, achieve and contribute to a global society. It manages 600 public elementary and high schools with more than 400,000 students in Chicago area. CPS programs provide all students regardless of race, gender or ethnicity, opportunities to develop academically and physically, mentally and emotionally in controlled, safe activities inside and outside of the traditional classes. Every student is unique and special that is why the goal of CPS is to provide programs that put each and every student on his or her pathway of success. Besides educational and sport programs, the CPS transportation program ensures safe, timely, and cost-effective transportation for all eligible students. Just several days ago, Barbara Byrd-Bennett became the new Chief Executive Officer of the Chicago Public Schools. Her 40 years experience in public schools will bring new changes that would make an effective impact on existing and future programs provided by Chicago Public Schools. As a not for profit organization, Chicago Public Schools have to ensure an efficient control of existing assets and more effective controls on expenditures and revenue collections. Due to a continuous budget deficit, internal control policies should be reevaluated and responsible employees should implement new policy changes to better manage resources. It would lead in reduction of the budget deficit and surpluses could be used to improve and expand learning programs. Recent teacher strike has caused our students seven days of classes. In order to provider our students with better standards of education and same time guarantee our teachers fair benefits, it is vital to put all our assets in a more efficient use. Our main objective is to provide our students with the best possible education and set new standards that will ensure a promising future for every student in Chicago.
ADDRESS 125 South Clark Street, Chicago, IL PHONE 312.428.1853 FAX 312.428.1853 WEB www.cps.edu

Being a member of a CPS internal audit team, I had a perfect opportunity to evaluate the internal controls used in some Chicago public elementary and high schools. Due to a small internal audit staff, CPS uses several external auditors from public accounting firms. It would be less costly and more efficient for CPS to expand its audit services staff department and use its own resources in conducting of all levels of audit. In order to conduct all necessary audits and place proper controls, CPS has to consider a possibility of hiring more internal auditors than all external auditors combined. This team of internal auditors will be better coordinated from a single office and it will add value to the organization in a more efficient way. A bigger team of auditors would not directly reduce audit costs, but a better efficiency will be achieved in a long run because of implementation of new policies, higher standards, and recommendations. As a matter of fact, the purpose of the internal auditors is not just to look for the findings before they become exception, but through follow-up and repeated audits to ensure that all issues are resolved. The audit process involves advisory and recommendations for staff training that are necessary for higher standards to be achieved (Sebastian, 162). A highly professional internal audit team is a crucial factor that would help CPS to achieve a financial stability. The new candidates should be recruited with a high academic standing and a CPA certification would be a requirement. A human resources officer should at least plan recruitment campaigns in the universities in Chicago area. In order to recruit dedicated and ambitious candidates, incentives and career development programs should be established. CPS is a government funded organization and has no real competitors in the area that would help to establish comparable benchmarks. Currently, the only way to measure its operations is to compare them with similar size school districts around the country. Reorganized audit department would be able to establish our own standards that would become an efficiency benchmark for similar size school districts. We are on a constant motion of improvement and the value added by a more efficient audit department would add a second gear. Most importantly, resulting benefits would directly be transferred to improve school programs and ensure the best possible education for our students.

Works Cited Flotoiu, Sebastian. "The Objective Of The Public Internal Audit "The Value-Added." Revista Academiei Fortelor Terestre 17.2 (2012): 162-166. Academic Search Complete. Web. 17 Oct. 2012. Link http://www.cps.edu/About_CPS/The_Board_of_Education/Pages/TheChicagoBoardofEducation.aspx