I'm not sure of the answer to the questions, but I would think that audits would be done whether there are red flags or not. Speaking as a church treasurer, I know that the books need audited by an outsider every year and it's not because there are red flags -- it is simply a measure of accountability and making sure things are done as they are supposed to be done. I can't imagine that educational facilities would be any different (other than the frequency of the audit)-- but I could be making wrong assumptions. I, too, would like to know the answer to these questions.
