Audit Committee Meeting 6/10/2026

The Scottsdale Unified School District Audit Committee meeting on June 10, 2026, focused primarily on the audit of the district's prescription drug benefits managed under a group purchasing organization (Kyros) and the pharmacy benefit manager (Maxor). The audit reviewed financial guarantees, rebate pass-throughs, and contract compliance related to pharmacy claims totaling over $5.5 million. The committee discussed a shortfall of approximately $59,000 to $66,000 in guaranteed discounts and the challenges in verifying rebate payments from manufacturers due to bulk invoicing practices. The audit also confirmed that rebate payments from Maxor to Kyros matched those passed through to Scottsdale, though the completeness of rebates received was not fully verifiable. The committee emphasized the importance of establishing stronger internal controls and tracking mechanisms with the new direct contract with Blue Cross Blue Shield and its PBM starting July 1, 2026. Additionally, the meeting included a detailed cash handling audit report with recommendations to improve training, documentation, and controls across district sites to safeguard resources. Future agenda items were proposed to include follow-up on the PBM transition, compensation study presentations, and potential audits of medical claims.