(1) In all school districts of the first class, by the school controller.

(2) In all school districts of the second, third and fourth class, except as hereinafter otherwise provided, by the controller or auditors of the city, borough, incorporated town, or township in which the whole or the greater or greatest portion of the area of the district is located.

(3) When in any school district of the second class the annual expenditures, exclusive of moneys received from the sale of bonds, exceeds the sum of five hundred thousand dollars ($500,000), such district may employ a certified public accountant within sixty days from the close of the fiscal year.

(4) Any school district of the second, third or fourth class and any joint school board may employ an independent auditor who shall be a certified public accountant or competent public accountant prior to the end of the fiscal year, and when so employed, such independent auditor shall audit the finances of such school district or such joint school board for such fiscal year instead of the controller or auditors hereinbefore referred to, and shall have all the powers and duties of such auditors, except that the audits shall be made in accordance with generally accepted auditing standards. The compensation of the independent auditor shall be fixed by the employing board of directors and shall be paid from the funds of the school district or of the joint school board, as the case may be.

(5) In any school district constituted of two or more municipal divisions by reason of the creation of a new city, borough or township, and the fact that such new city, borough or township, or a part of the original school district remaining after its separation, would constitute a fourth class school district, and the creation of such fourth class school district has not been approved, the auditors or the controllers of the cities, boroughs, towns, or townships last created and which do not form a separate school district shall meet annually with the auditors of the school district and participate in the audit of the school accounts, and such auditors or controllers shall have the same rights and powers as are conferred by this act upon the auditors of school accounts.

(6) In all independent school districts, by the proper auditors, herein provided for school districts of the class in which they belong, and where an independent school district of the fourth class is taken from two or more school districts, its accounts shall be audited by the auditors of the school district in which its buildings are located.

(7) In union or merged school districts the court of common pleas of the county in which the district is located, upon petition of the board of school directors of such union or merged school district, shall, as soon as convenient after the creation of the district, appoint three persons to audit the financial accounts of the district. The auditors so appointed shall, on the first day of July, at the time of organization, or within five days thereafter, and within thirty days, carefully audit and adjust the financial accounts of the school district for the preceding school year. At the first municipal election after a union or merged school district is created there shall be elected three school auditors, one for a term of two years, one for a term of four years, and one for a term of six years, and their successors thereafter shall be elected for terms of six years each. When a vacancy occurs in the office of auditor in any union or merged school district by reason of death, resignation, removal from the school district, or otherwise, the court of common pleas of the county in which the district is located, upon petition of the board of school directors of such union or merged school district, shall appoint a person to hold such office for the unexpired term of the person whose place he is appointed to fill. The compensation of both the appointed and elected auditors shall be ten dollars ($10) per day for each day necessarily spent by each auditor. The total expense of such auditing, including the cost of filing the report, advertising, and other necessary costs, shall be paid by the union or merged school district.

The board of school directors of any union or merged school district may employ a certified public accountant to audit the finances of such school district for such fiscal year instead of the auditors, hereinabove referred to, and such certified public accountant shall have all the powers and duties of said auditors and shall receive the compensation fixed by the board of directors of the union or merged school district and shall be paid by the said district.

(8) Deleted by 2019, Oct. 30, P.L. 460, No. 76, § 59, effective in 60 days [Dec. 30, 2019].

(9) The financial accounts of each annual county or district teachers' institute shall be audited by three auditors, two to be elected by the teachers' institute and one by the directors' association for a county institute, and by the board of school directors for the district institute.

(10) The financial accounts of the directors' association shall be audited by the county auditors or county controller.

(11) In all school districts established as a result of the provisions of the act of August 8, 1963 (P.L. 564),¹ by a certified public accountant, a firm of certified public accountants, a competent independent public accountant or a firm of competent independent public accountants who shall be named prior to the end of the fiscal year and shall have all the powers and duties of such other auditors hereinbefore provided, except that the audit shall be made in accordance with generally accepted auditing standards. The compensation of the accountant or firm of accountants shall be fixed by the employing board of school directors and shall be paid from the funds of the school district.

The accountant or firm of accountants may be designated for a term of years and, at the discretion of the board, may be authorized to conduct a monthly audit of accounts.