WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING

Transcription

1 WashM- County School District WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING Thursday, June 28, 2018 WCSD Administration Building 425 East 9th Street, Board Room Reno, Nevada OPENING ITEMS AGENDA 1.01 Call to Order 3:30 p.m., WCSD Administration Building, 425 East 9th Street, Board Room, Reno, Nevada Roll Call 1.03 Public Comment - Comments from the public are invited at this time on topics not specifically addressed elsewhere in the agenda. A Citizen s Request to Speak card should be filled out and submitted to the Recording Secretary before speaking during the Public Comment section. All persons are limited to three minutes per item. In accordance with Open Meeting Law and on the advice of legal counsel, the public body is discouraged from discussing and precluded from deliberating and/or acting on items raised by Public Comment which are not already on the agenda. The public body may impose reasonable content-neutral restrictions on public comment such as willfully disruptive comments that are irrelevant, repetitious, slanderous, offensive, inflammatory, irrational, or amounting to personal attacks or interfering with the rights of other speakers. Correspondence or written materials submitted for public comment by the general public shall be attached to the minutes of the meeting Action to Adopt the Agenda (For Possible Action) - Items on this agenda may be taken out of order; the public body may combine two or more agenda items for consideration; and the public body may remove an item from the agenda or delay discussion relating to an item on the agenda at any time. 2. DISCUSSION, PRESENTATION, AND ACTION ITEMS (Public comment: any individual may address the public body concerning any item listed below. A completed Citizen s Right to Speak card must be submitted to the public body at the meeting. During the discussion of each item on the agenda, the Chair will invite the individual to come forward to speak. Individuals are limited to three minutes per item.) 2.01 Approval of the Minutes of the Audit Committee Meeting Held February 8, 2018 (For Possible Action) 2.02 Presentation and Discussion of the Planned Scope and Timing of the 2018 External Financial Audit of the Washoe County School District, New Governmental Accounting Standards Board ( GASB ) Standards to be Implemented, and the Interaction of the External Auditor with the Internal Auditor and Audit Committee (For Discussion Only) 2.03 Discussion and Possible Action to Forward to the Board of Trustees for Their Consideration and Acceptance the Audit of Nutrition Services - Unpaid Balances to Include No-Limit Negative Charging and Parent Accountability for Unpaid Meal Balances, and Community Eligibility Provision that Allows Schools to Provide Free

2 Audit Committee Meeting Agenda June 28, 2018 Pg. 2 Meals to Students, Totaling $450,000 in Potentially Untapped Federal Benefits. (For Discussion and Possible Action) 2.04 Discussion and Possible Action to Forward to the Board of Trustees for Their Consideration and Acceptance the Update of the Transportation Audit Which Includes the Findings, Recommendations, and Responses Related to District-Owned Vehicles, Athletic Transportation Fees, and Internal Controls Over the Collection of Trip Payments (For Discussion and Possible Action) 2.05 Discussion and Possible Action to Forward to the Board of Trustees for Their Consideration and Acceptance the Annual Follow-up of Internal Controls Over Payroll Audit Which Includes the Findings, Recommendations, and Responses Related to Three Recommendations Not Yet Fully Implemented From Internal Audit s 2011 Audit Report (For Discussion and Possible Action) 2.06 Discussion and Possible Action to Forward to the Board of Trustees for Their Consideration and Acceptance the Fiscal Year 2019 Internal Audit Department Risk- Based Audit Plan (For Discussion and Possible Action) 2.07 Discussion and Possible Action to Assign a Member of the Audit Committee to Create the 2018 Annual Report of the Activities of the Audit Committee (For Discussion and Possible Action) 2.08 Presentation of Report Fraud, Waste, and Abuse Hotline Concerns and Outcomes since February 8, 2018 Meeting of the Audit Committee (For Information Only) 2.09 Presentation of the Audit Committee Annual Calendar (For Information Only) No discussion among the members will take place on this item 2.10 Chief Auditor s Report (For Information Only) No discussion among the members will take place on this item 3. CLOSING ITEMS 3.01 Announcement of Next Meetings: Thursday, August 9, 2018 at 3:30 p.m.; Thursday, November 8, 2018 at 3:30 p.m.; Thursday, February 14, 2019 at 3:30 p.m.; Thursday, May 9, 2019 at 3:30 p.m. WSCD Board Room 3.02 Public Comment - Comments from the public are invited at this time on topics not specifically addressed elsewhere in the agenda. A Citizen s Request to Speak card should be filled out and submitted to the Recording Secretary before speaking during the Public Comment section. All persons are limited to three minutes per item. In accordance with Open Meeting Law and on the advice of legal counsel, the public body is discouraged from discussing and precluded from deliberating and/or acting on items raised by Public Comment which are not already on the agenda. The public body may impose reasonable content-neutral restrictions on public comment such as willfully disruptive comments that are irrelevant, repetitious, slanderous, offensive, inflammatory, irrational, or amounting to personal attacks or interfering with the rights of other speakers. Correspondence or written materials submitted for public comment by the general public shall be attached to the minutes of the meeting Adjourn Meeting

3 Audit Committee Meeting Agenda June 28, 2018 Pg. 3 Forum Restrictions and Orderly Conduct of Business: The Audit Committee conducts the business of the Washoe County School District during its meetings. The presiding officer may order the removal of any person whose statement or other conduct disrupts the orderly, efficient or safe conduct of the meeting. Warnings against disruptive comments or behavior may or may not be given prior to removal. The viewpoint of a speaker will not be restricted, but reasonable restrictions may be imposed upon the time, place and manner of speech. Irrelevant and unduly repetitious statements and personal attacks which antagonize or incite others are examples of speech that may be reasonably limited. Members of the public wishing to request supporting materials for this meeting or who are disabled and require special accommodations at the meeting should contact Paula Ward, Chief Auditor, prior to the date of the meeting. Ms. Ward can be reached in writing at PO Box 30425, Reno Nevada , by telephone at or by at committees@washoeschools.net. This agenda and supporting materials, when appropriate, have been posted at the following locations: State of Nevada website (notice.nv.gov) WCSD Central Administrative Building Washoe County Administration Building Washoe County Courthouse Reno City Hall Sparks City Hall Sparks Library Pyramid Lake Paiute Tribe Administration Building Reno Sparks Indian Colony Administrative Office

4 ~... >>~ EideBaill~ CPAs & BUSINESS ADVISORS WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE Pre-audit Update June 28, 2018

5 WCSD AUDIT COMMITTEE PRE-AUDIT UPDATE Agenda Planned Scope and Timing New for fiscal year 2018 Interaction of Internal Auditor and Audit Committee with the External Auditor

6 PLANNED SCOPE AND TIMING Audit of the Financial Statements and Single Audit Entrance conference with management May 3 rd Scope: Financial Statement Audit Single Audit OPEB Plan and Trust Audit Planning April-May Interim audit procedures June-July Year end fieldwork September Presentations October-November

7 PLANNED SCOPE AND TIMING Audit of the OPEB Plan and Trust Fund Planning and fieldwork March 2019 Presentation Subsequent Board of Trustees Meeting Scope: Financial Statement Audit Single Audit OPEB Plan and Trust Audit

8 NEW FOR FISCAL YEAR 2018

9 1 AUDIT OF THE FINANCIAL STATEMENTS Implementation of GASB Statement No Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions 2 SINGLE AUDIT Procurement Standards 3 OPEB PLAN AND TRUST FUND Audit of the Plan and Trust to be completed for fiscal year 2018 Stand alone financial statements of Plan and Trust to be issued Implementation of GASB Statement No Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans

10 INTERACTION OF INTERNAL AUDITOR AND AUDIT COMMITTEE WITH THE EXTERNAL AUDITOR We consider the work of the Internal Auditors during our engagement Update our understanding of the following: Organizational status and policies Primary responsibilities and directives Audit plan and areas of focus Review the work and results of the procedures performed over the student activity funds as well as the performance audits of the various departments and document this in our audit file At this point we are not planning to use the work of the Internal Auditors and/or direct assistance from the Internal Auditors as part of our audit Typical for our Governmental Entities

11 INTERACTION OF INTERNAL AUDITOR AND AUDIT COMMITTEE WITH THE EXTERNAL AUDITOR Considerations the Internal Auditor or Audit Committee has for the External Auditor Questions Concerns Particular areas of increased focus Account balances Transaction classes Physical locations

12 QUESTIONS? This presentation is presented with the understanding that the information contained does not constitute legal, accounting or other professional advice. It is not intended to be responsive to any individual situation or concerns, as the contents of this presentation are intended for general information purposes only. Viewers are urged not to act upon the information contained in this presentation without first consulting competent legal, accounting or other professional advice regarding implications of a particular factual situation. Questions and additional information can be submitted to your Eide Bailly representative, or to the presenter of this session.

13 THANK YOU Dan Carter, CPA Partner CPAs & BUSINESS ADVISORS

14 WASHOE COUNTY SCHOOL DISTRICT AUD IT COMMITTEE MEETING - JUNE 28, 2018 Nutrition Services Unpaid Balances and Community Eligibility March 2018 REPORT PRESENTATION Washoe County School District

15 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''School meal debt hits ne\n $84K high; WCSD weighs changing its lunch policy'' (RGJ, Jan 2018) REPORT PRESENTATION

16 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''School meal debt hits ne\n $84K high; WCSD weighs changing its lunch policy'' (RGJ, Jan 2018) "RI school lunch debt tops $300,000" (WPRI, April 2018) REPORT PRESENTATION

17 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''School meal debt hits ne~ $84K high; WCSD weighs changing its lunch policy'' (RGJ, Jan 2018) "RI school lunch debt tops $300,000" (WPRJ, April 2018) "Nearly $139K in lunch debt owed at Valley school districts" (The Daily Item, May 2018) REPORT PRESENTATION

18 WASHOE COUNTY SCHOOL DISTRICT AUD IT COMMITTEE MEETING - JUNE 28, 2018 ''School meal debt hits ne~ $84K high; WCSD weighs changing its lunch policy'' (RGJ, Jan 2018) "RI school lunch debt tops $300,000" (WPRJ, April 2018) "Nearly $139K in lunch debt owed at Valley school districts" (The Daily Item, May 2018) "With more than $200,000 in school lunch debt, who foots the bill?" (WWAY, June 2018) REPORT PRESENTATION

19 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 Objectives 1) Can unpaid charges be decreased or mitigated? REPORT PRESENTATION

20 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE Objectives 1) Can unpaid charges be decreased or mitigated? 2) Can the food service program financially benefit from school participation in the Community Eligibility Provision (CEP)? REPORT PRESENTATION

21 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''WCSD to give different meal to students with overdue lunch fees'' (RGJ, May 2017) REPORT PRESENTATION

22 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''WCSD to give different meal to students with overdue lunch fees'' (RGJ, May 2017) "U.S. schools rethink 'lunch shaming' policies that humiliate children with meal debts" (PBS, July 2017) REPORT PRESENTATION

23 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''WCSD to give different meal to students with overdue lunch fees'' (RGJ, May 2017) "U.S. schools rethink 'lunch shaming' policies that humiliate children with meal debts" (PBS, July 2017) "Shaming Children So Parents Will Pay the School Lunch Bill" (NY Times, April 2017) REPORT PRESENTATION

24 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 ''WCSD to give different meal to students with overdue lunch fees'' (RGJ, May 2017} "U.S. schools rethink 'lunch shaming' policies that humiliate children with meal debts" (PBS, July 2017) "Shaming Children So Parents Will Pay the School Lunch Bill" (NY Times, April 2017) "Students Face 'Lunch Shaming Over Unpaid Meals - NBC News" (NBC News, Sep 2017) REPORT PRESENTATION

25 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 Ideas from Benchmarking and Research School intervention with a guidance counselor or social worker. Varying levels of outreach from Nutrition Services or administration. Various thresholds and timeframes for outside collections. Carrying-over debt from 'paid' students. Using alternative sources of funding. Utilizing unused meal funds to support unpaid balances. REPORT PRESENTATION

26 WASHOE COUNTY SCHOOL DISTRICT AUD IT COMMITTEE MEETING - JUNE 28, 2018 Recommendations for UnP-aid Balances Enforcing parental accountability when charges are late. Carrying-over unpaid charges from 'paid' students so in-house efforts may continue. Referring bad debt to outside collections once efforts are exhausted. Using alternative sources of funding, such as discretionary SAF. Contacting households about unused meal funds. Development, implementation, documentation of revisions and procedures. REPORT PRESENTATION

27 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE "Most of my parents can pay their balances, however, when they read in the paper that the district covers whatever is owed at the end of the year [... ] the parents have no reason to follow through and pay. [... ] A couple of the families always have the best clothes, etc and don't pay their bill... we are at a loss... REPORT PRESENTATION

28 WASHOE COUNTY SCHOOL DISTRICT AUD IT COMMITTEE MEETING - JUNE 28, 2018 "Most of my parents can pay their balances, however, when they read in the paper that the district covers whatever is owed at the end of the year [... ] the parents have no reason to follow through and pay. [... ] A couple of the families always have the best clothes, etc and don't pay their bill... we are at a loss. A few of our worst offenders are actually parents that are employees of our district, they know that they can get away without paying." REPORT PRESENTATION

29 WASHOE COUNTY SCHOOL DISTRICT AUD IT COMMITTEE MEETING - JUNE Community Eligibility Provision Meals are offered at no charge to all students at participating schools, groups of schools, or entire districts. Categorical eligibility of a school site's student population determines the Identified Student Percentage (ISP), e.g., students receiving benefits from SNAP and TANF. This ISP determines the level of reimbursement. Sites can re-enroll in CEP if their ISP increases in subsequent years, but the rate is locked in for a four-year cycle otherwise. REPORT PRESENTATION

30 WASHOE COUNTY SCHOOL DISTRICT AUDIT COMMITTEE MEETING - JUNE 28, 2018 CommunitY. EligibilitY. Provision Recommendations Annually analyze the potential benefits of participation in CEP, by individual school site, with considerations for Title I impact. Provide the annual analysis of CEP participation to management and request a determination. Develop and implement a procedure detailing the annual analysis, with consideration for NDA data. REPORT PRESENTATION

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32 Washoe County School District

33 Washoe County School District Internal Audit Department Audit Report March 2018 Nutrition Services Unpaid Balances and Community Eligibility Nutrition Services provides access to meals for students in a healthy and safe environment while generally maintaining a high-level of fiscal responsibility. However, much of the food served to students throughout the year is charged as a negative balance under the current no-limit meal charge policy. As a result, parental accountability for student meal funds is removed and unnecessary burden is placed on the budget. Allowing negative balances to accrue without limit may ultimately have a negative impact on federal reimbursement by decreasing the amount of qualified students applying for free-and-reduced priced meals. Additionally, Aramark and Nutrition Services incorrectly analyzed the Community Eligibility Provision, leaving supplementary federal benefits potentially untapped.

34 CONTENTS OBJECTIVES AND BACKGROUND 01 COMMENDATIONS 01 WHAT WE FOUND Unpaid Meal Account Balances Climbing Exhibit I Delinquent Debt Prematurely Deemed Uncollectible Excess Meal Funds Unclaimed and Unused Community Eligibility Provision Not Adopted SCOPE AND METHODOLOGY APPENDIX A Administrator Responses 14 APPENDIX B Major Contributors and Report Distribution 20 Management Responses APPENDIX C 21 OBJECTIVES Can unpaid charges be decreased or mitigated? Can the food service program financially benefit from school participation in the Community Eligibility Provision? BACKGROUND Nutrition Services, in partnership with Aramark, administers child nutrition programs to over 64,000 students at 97 sites throughout Washoe County School District (WCSD). The Sparks-based Nutrition Services Center features a central production kitchen and food distribution warehouse which provides breakfast and/or lunch to all school cafeterias including some charter schools. During the school year, an average of over 48,000 meals/meal equivalents were served daily. COMMENDATIONS Multiple schools utilize Provision 2, easing the administrative burden associated with free and reduced meal programs. Nutrition Services widely and timely publicizes the online meal payment system and meal application process. Low-balance and negative-balance notifications are triggered automatically. Share tables to decrease school food waste are in the pilot-phase. 01

35 WHAT WE FOUND Summary Can unpaid charges be decreased or mitigated? Unpaid meal charges can be mitigated by enforcing parental accountability, providing the district with options to reduce the mounting meal debt. Currently, WCSD allows no-limit negative charging at the elementary school level and does not enforce parental accountability for unpaid meal balances. Benchmarking research and responses revealed that the majority of similarly-populated school districts limit negative charges at the elementary school level and impose tiered parental consequences for failures to pay. WCSD s unpaid balance from the school year was nearly four times the average total of unpaid balances reported from districts that limit charges. Enforcing parental accountability helps mitigate and recoup negative charges and shifts the focus from students to parents. Unused meal account funds may reduce the growing meal debt in particular circumstances. Per United States Department of Agriculture (USDA) requirements, the district must contact parents/guardians regarding unused funds after separating from the district. Currently, Nutrition Services does not contact households to return remaining funds once students separate from the district. Families may choose to donate their unused funds or receive a refund. Unclaimed refunds can then be used to further reduce meal debt. If the district contacted parents/guardians regarding unused meal account balances, approximately $32,000 (2017 year-end balance) could reduce unpaid meal balances. Can the food service program financially benefit from school participation in the Community Eligibility Provision? The Community Eligibility Provision (CEP) allows schools and local educational agencies located in low-income areas to provide free meals to students while eliminating the burden of collecting household applications for eligibility determinations. Although Aramark and Nutrition Services have concluded participation in CEP as non-beneficial, analysis showed a financial benefit connected to thirteen schools if adopting CEP during the school year and carried through October 31, The total of potentially untapped federal benefits topped $450,000. FINDING 1 Unpaid Meal Account Balances Climbing WCSD parents and guardians accrued over $66,000 in negative meal charges during the school year and over an additional $84,000 six months into the school year (as of December 29, 2017). The increase in negative charges may be attributed to the no-limit meal charge policy for elementary school students. Although the district distributes weekly notifications to parents and guardians regarding outstanding balances, the district does not enforce parental accountability for negative charges. NO-LIMIT NEGATIVE CHARGING AT ELEMENTARY SCHOOLS Beginning July 2017, the USDA required all school food authorities provide their meal charge policy in writing to all households at the start of each school year. As a result, the Nutrition Services Department sent a letter to parents stating: Elementary School Students without money on account or in hand can charge USDA reimbursable meals to their student meal account as a negative balance. It is the intention of WCSD that each household will pay off the negative balance by the end of the school year. The District will keep families informed by sending weekly notifications to the parents and guardians regarding outstanding balances. Every elementary-aged child will receive the same meal as their peers receive, regardless of their ability to pay. (Auditor emphasis) 02

36 Allowing unlimited negative charges lets parents and guardians avert financial responsibility for school meals, places financial burden on the district, and reduces the willingness of paying parents and guardians to continue paying. Benchmarking research and responses from similarly populated school districts revealed fourteen of twenty-two districts (64%) limit negative charges at the elementary school level. Of those fourteen, six provided their unpaid balances for the school year, averaging approximately $17,600 in unpaid balances. 1 WCSD s negative charges were nearly fourtimes that amount for the same year. FORECASTING THE FUTURE San Francisco Unified School District (SF Unified) reported over $155,000 in accrued charges during the school year and over $84,000 as of September 30, Similar to WCSD, SF Unified allows parents and guardians to accrue negative charges without limit or consequence. Therefore, both districts feed students regardless, but the affordances granted by their meal charge policies are unguarded from possible abuse. FOLLOW-UP AND COLLECTIONS PROCESS Benchmarking research and responses also provided insight on peer school districts follow-up and collection process for unpaid meal charges. For example: Seminole County Public Schools (FL) distributes reminders for low or negative balances and, if payment is not received within ten days, the campus restaurant manager contacts the parent or guardian directly and notifies the school s guidance counselor or social worker, citing the student's well-being as the priority. Granite School District (UT) details a five-step communication process and refers to collections when the account has held a negative balance for ninety business days. Virginia Beach City Public Schools (VA) sends weekly negative balance notices to parents and guardians, turning over all unpaid balances to the City of Virginia Beach for collection at the end of the school year. Davis School District (UT) includes a debt collection agreement with other school policies that are signed by the parent/guardian. From there, the meal charge policy details several means of communication and all remaining unpaid charges are handled the same as other school debt: sent to collections on June 1 of each year with a 33.3% fee. Despite referring unpaid balances to collections upon year-end, they reported a 4% decrease in their free-and-reduced student population. No-limit charging "affects the free and reduced students," stated their Nutrition Services Director, Why fill out an application if everyone gets fed[?] In response to school administrator outreach, one WCSD elementary school principal stated, I don t think the school has enough clout behind us for these big balances. (See Appendix A for additional administrator responses.) Enforcing parental accountability when meal charges become delinquent will help mitigate negative charges and incentivize qualifying parents and guardians to submit meal benefit applications. WE RECOMMEND 1. Enforcing parental accountability when meal charges become delinquent. SEE EXHIBIT I on the following page for an example of a tiered parental accountability system. 1 These six school districts offer courtesy meals for students without funds. 03

37 EXHIBIT I POSSIBLE TIERED PARENTAL ACCOUNTABILITY SYSTEM FOR UNPAID CHARGES Student arrives at POS with only $10 remaining. Low balance notification is triggered. Parent or guardian replenishes funds, submits meal benefit application, or communicates hardship. Unresponsive Student arrives at POS with no remaining funds on account or in hand. Student charges meal and negative balance notification is triggered. Parent or guardian replenishes funds, submits meal benefit application, or communicates hardship. Unresponsive If a s uaent charges meals for 5 consecutive days, or the equivalent of 5 breakfasts & lunches, a negative balance phone call from admin. is triggered. Parent or guardian replenishes funds, submits meal benefit application, or communicates hardship. Un responsive ~ ~ --< If as udent charges meals for 1 0 consecutive days, or the equivalent of 10 breakfasts & lunches, another admin. phone call is triggered. Unresponsive If a student Unresponsive charges meals for 15 consecutive days, or the equivalent of 15 breakfasts & lunches, a formal letter from admin. is triggered. Warning that the school's guidance counselor/social worker may be contacted if balances continue to accrue without a response. Parent or guardian replenishes funds, submits meal benefit application, or communicates hardship. If charges remain unpaid at the end of the school year but communication was established indicating intended repayment, the debt will carry over to the following school year so repayment/inhouse collections may continue. 9 arning that habitual negative charging may warrant contacting a guidance counselor/social worker, and the balance may be sent to collections at year-end without response Parent or guardian replenishes funds, submits meal benefit application, or communicates hardship. School's guidance counselor or socia I worker is contacted, citing the student's well-being as the district's top priority. Parent or guardian replenishes funds, submits ( meal benefit application, or communicates hardship... ' OR Unresponsive 04

38 During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: We accept the recommendation. Nutrition Services agrees that enforcing parental accountability when meal charges become delinquent is important. Nutrition Services will draft a proposed Tiered Parental Accountability Plan which pending approval by the board of trustees will be presented as a recommendation for amendment to Board Policy 7546, School Nutrition Services. The proposed Tiered Parental Accountability Plan will include multiple opportunities, consisting of multiple communication platforms, for households to replenish funds, submit meal applications, and/or communicate a hardship. The plan will be compassionate and at no time will the District shame a child. The plan will specify tiered communication action based on a negative dollar account balance verses a set number of charged meals. Utilizing this approach will streamline reporting, data analysis, and is more in line with our POS reporting features. The District will work with any parent that claims hardship for any reason to set up a payment plan and to determine if the household qualifies for Free or Reduced Prices Meal Benefits. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval the draft will be finalized by June 30, OUTSIDE COLLECTIONS Once internal collection efforts have been exhausted, many organizations use attorneys or collection agencies to continue pursuit of unpaid balances. However, the district currently does not pursue unpaid meal charges. According to NRS Chapter 353C, the State Controller s Office (SCO) holds the overall responsibility for debt collection for all state agencies after accounts receivable reach the 60-day aging level. State agencies provide delinquent debts to the State Controller s Office for collection, which may be contracted out by the Controller s Office to professional debt collection agencies. The SCO has contracted with three private collection agencies that the school district may use to provide assistance in the recovery of delinquent debt owed. These private collection agencies perform collection services for the SCO for a contingency fee. If the private collection agencies don t collect, then the district will not pay collection fees. RECORDKEEPING Upon the conversion of delinquent debt to bad debt, records related to the unpaid meal charges must be maintained. Recordkeeping requirements for bad debt were outlined in the USDA guidance updated May 2017, Overcoming the Unpaid Meal Challenge: Proven Strategies from Our Nation s Schools: Once delinquent debts are converted to bad debts, records relating to those charges must be maintained in accordance with the record retention requirements outlined in 7 CFR 210.9(b)(17) and 7 CFR (b). The following records should be maintained to document the appropriate establishment and handling of bad debt: Evidence of efforts to collect unpaid meal charges in accordance with the State or local unpaid meal charge policy; Evidence the collection efforts fell within the timeframe and methods established by the State or local meal charge policy; Financial documentation showing when the unpaid meal charge(s) became an operating loss; and Evidence any funds written off as bad debt were restored to the [nonprofit school food service account] using non-federal sources. 05

39 WE RECOMMEND 2. Referring bad debt to outside collections once in-house collection efforts are exhausted. Maintain records upon converting unpaid meal charges to bad debt. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: Business and Finance agrees with this change. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval a process will be finalized by June 30, FINDING 2 Delinquent Debt Prematurely Deemed Uncollectible Unpaid meal charges are considered delinquent debt when payment is overdue. The debt is classified as delinquent as long as it is considered collectible and efforts are made to collect it. When an organization determines delinquent debt uncollectible, the organization must reclassify the debt to bad debt. Bad debts must be written-off as operating losses. Any operating loss incurred as a result of unpaid meal charges may not be absorbed by the nonprofit school food service account and must be reimbursed from a non-federal source of funds. CARRYOVER UNPAID BALANCES Each year, the district reclassifies unpaid meal charges to bad debt then writes it off as an operating loss. As a result, WCSD reclassified over $66,000 in unpaid meal charges from fiscal year 2017 as bad debt and wrote it off as an operating loss. Although the district received a small donation, the general fund largely absorbed this loss, which equated to over 126% of the average WCSD teacher's salary during the same year. The district s meal charge policy states the student s parent/guardian must pay the negative balance by the end of the school year. However, a USDA memo from July 2016 offered clarification on the collection of unpaid meal charges (negative balances). The memo noted: Unpaid meal charges may be carried over at the end of the school year (i.e., beyond June 30) as a delinquent debt and collection efforts may continue into the new school year. This allows [School Food Authorities] to work with families to establish longer repayment plans and to continue pursuing collection efforts [School Food Authorities] must make reasonable efforts to collect unpaid meal charges classified as delinquent debt and the cost of these efforts is an allowable use of [nonprofit school food service account] funds. 2 2 Expenditures from the nonprofit school food service account must meet the standards for allowable costs set out in the Federal cost principles at 2 CFR Part 200, Subpart E. Section of the subpart states Bad debts including losses arising from uncollectable accounts and other claims, are unallowable. Related collection costs, and related legal costs, arising from such debts after they have been determined to be uncollectable are also unallowable. 06

40 One creative approach to handling unpaid meal charges includes a distinction between which balances carry forward. Katy Independent School District (TX) carries forward any charges attributed to paid students (who are ineligible to receive meal benefits) so in-house collection efforts may continue, while the general fund covers charges attributed to free and reduced students (whose meal benefits lapsed). WE RECOMMEND 3. Carrying over delinquent debt (unpaid meal charges) attributed to paid students each year so in-house collection efforts may continue. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: Business and Finance agrees with this change as long as the Board of Trustees School Nutrition Policy allows for collection efforts or a meaningful change in the notification/communication process. Otherwise, based on the results of the current process, simply carrying over delinquent debt without a significant change in policy or approach would only have the effect of overstating assets of the fund in the current fiscal year and deferring the write off of uncollectible debt. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval the draft will be finalized by June 30, CONSIDER ALTERNATIVE FUNDING SOURCES Benchmarking responses from similarly populated school districts also provided insight on the different sources of non-federal funds used to reimburse bad debt resulting from negative charges. 07

41 Aside from the general fund, alternative sources of funding are allowable per the same USDA guidance updated May 2017, such as local contributions provided by the community, a la carte revenue, and catering revenue. One district designates separate sources of reimbursement for separate negative charges. At North East Independent School District (TX), the general fund reimburses the nutrition services fund for charges attributed to free and reduced students, while individual schools provide reimbursement for charges attributed to paid students. Analysis of schools student activity funds revealed a substantial amount of discretionary funds remained at the close of the school year, which could have supported each school s own collectible unpaid balance. If individual schools utilized discretionary student activity funds remaining at year-end (e.g., principal s discretionary, general donations, and photos), schools could have decreased their unpaid meal balances by over 73% (while also reducing the amount of schools holding a negative balance from 63 sites to 6 sites). WE RECOMMEND 4. Considering alternative sources of funding to restore any operational loss incurred from unpaid meal charges. 3 During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: Do not accept. Currently the Nutrition Services a la carte and catering funding sources are not capable of subsidizing the district negative balance totals, especially with unlimited charging at all elementary schools. Further, schools should not be required to use their student activity funds (SAF), which are funds raised and collected by the school to improve the overall educational experience of children. Typically, SAF are generated through specific fundraising activities by the entire school for specific purposes and should not be used to pay for a select sub group. REVISE MEAL CHARGE POLICY According to the USDA, in establishing policies regarding collection of delinquent debt, school food authorities should ensure efforts do not have a negative impact on the children involved, but focus primarily on the parents or guardians responsible for providing funds for meal purchases. School food authorities are also encouraged to consider whether the benefits of potential collections outweigh the costs which would be incurred to achieve those collections. Policies regarding the collection of unpaid meal charges should be included in the written meal charge policy. 3 From Nutrition Services Customer List with Account Balances report (Negative Balances) which excludes certain accounts that either wouldn t be collected due to categorical circumstances or are not tied to an individual, such as CIT, withdrawn students, and Generic Accounts. (Unaudited) 08

42 While the district s meal charge policy briefly addresses collecting outstanding meal charges, it does not detail the methods or quantify the timeframe for collection. The meal charge policy states, The District shall take appropriate steps to notify the parent/guardian and collect any outstanding balance, to include sending notification to the home and making follow-up phone calls. WE RECOMMEND 5. Documenting revisions to collections procedure. 6. Developing and implementing a charge policy that communicates the district s expectations regarding parental accountability and unpaid meal charges. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: We accept the recommendation. Nutrition Services agrees, and as stated above under Recommendation 1, Nutrition Services will draft a proposed Tiered Parental Accountability Plan which will be presented as a possible addition to the current Meal Charge Policy laid out in Board Policy 7546, School Nutrition Services. The plan will communicate expectations regarding parental accountability with regards to unpaid meal charges. Furthermore the plan will be compassionate and at no time during the plan execution will the District shame a child. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval the draft will be finalized by June 30, FINDING 3 Excess Meal Funds Unclaimed and Unused The district held approximately $32,000 in unclaimed meal account funds approaching the end of the school year. Nutrition Services currently has no standard procedure detailing the handling of unused funds attributed to students who have departed the district; as such, parents/guardians have not been notified about refunds or donations and unclaimed meal funds are unused. As a result, $32,000 of unclaimed meal funds remained tied-up as unearned revenue, while they could either have been redistributed to parents/guardians or potentially allocated towards unpaid meal charges. USDA guidance says: When any child leaves the district or graduates, SFAs must attempt to contact the child s household to return any funds remaining in the student s account. Households approved for reduced price meal benefits must receive a refund. However, SFAs may allow families who are not approved for free or reduced price meals to donate the funds remaining in their account rather than receiving a refund when their child leaves the school. These funds then could be used to cover unpaid meal charges that were uncollectible. (Auditor emphasis) 09

43 If any refunds sent by the district to parents remain unclaimed, NRS would exclude payments made by the district from being presumed legally abandoned these stale checks would be void and written-off. Research regarding the surrender of unused funds was inconclusive and the matter is still under review. Using unclaimed funds to reduce unpaid meal charges further reduces the burden placed on the general fund. WE RECOMMEND 7. Contacting households about returning or donating any unused meal funds when any child leaves the district or graduates. 8. Developing and implementing a procedure detailing the handling of unused meal funds upon a student s departure from the district. During the February 27, 2018 Board Meeting, the Chief Operating Officer stated that the Office of Business and Finance is working to initiate a process to reach out to account owners of the inactive accounts where the student is no longer enrolled in the WCSD and has a material balance still on their account [ ] to see if they would be willing to donate their unused balance to partially offset the meal account delinquent debt. MANAGEMENT RESPONSE: We accept the recommendation. Business and Finance is developing a process for notifications to account owners of inactive/dormant accounts. TIMELINE FOR IMPLEMENTATION: We are still researching, tentatively a process will be finalized by December 31, 2018 FINDING 4 Community Eligibility Provision Not Adopted The Washoe County School District (WCSD) potentially missed opportunities of over $450,000 in federal benefits related to school meals from the school year through October 31 of the school year. These benefits originate from participation in the Community Eligibility Provision (CEP) and show similarities to Provision 2 reimbursement. Aramark, the school district s food service management company, and Nutrition Services both concluded that participation in CEP was non-beneficial. Twenty-four WCSD schools participated in Provision 2 during the school year. Provision 2 allows schools to serve meals to students at no charge for up to four years and reduces administrative burden by simplifying meal benefit application requirements and counting/claiming procedures. 10

44 Provision 2 schools may benefit from transitioning to the Community Eligibility Provision. The Community Eligibility Provision is a non-pricing meal service option for schools and school districts in low-income areas which allows schools and districts to serve breakfast and lunch at no cost to all enrolled students without collecting household applications. Instead, schools that adopt the Community Eligibility Provision are reimbursed using a formula based on their Identified Student Percentage (ISP), the percentage of students categorically eligible for free meals based on their participation in other specific programs, such as the Supplemental Nutrition Assistance Program and Temporary Assistance for Needy Families. Programs operating under Title I often use National School Lunch Program (NSLP) data to carry out certain Title I requirements. Because the district often uses school lunch data to help implement aspects of Title I, changes to the school lunch program, such as CEP, can affect Title I. Although implementation of CEP may affect Title I, Aramark and Nutrition Services have not provided an impact analysis. In a USDA webinar pertaining to CEP and Title I, the Deputy Assistant Secretary, Office of Elementary and Secondary Education, stated, the benefits of this program definitely outweigh any of the growing pains that one might experience. According to the USDA, participation in CEP is available to qualifying individual schools, as well as groups of schools or entire districts. Although Nutrition Services analyzed schools individually, there is no standard procedure detailing the annual analysis of CEP participation they utilized incomplete/incorrect student enrollment data and also combined calculations to include schools that would not benefit from the transition, which resulted in a net loss. Using student enrollment data provided by the Nevada Department of Agriculture and including only schools that would benefit from CEP participation yielded different results. 4 Analyzing the Past If individual schools elected to enroll in CEP during the school year, they would have received: Over $347,000 in additional federal reimbursement when compared to federal reimbursement from Provision 2 during the school year. Over $106,000 in additional federal reimbursement when compared to federal reimbursement from Provision 2 during the school year as of October 31, 2017, considering baseyear ISPs carry through for a four-year cycle. 6 4 Analyzing the Present If individual schools elected to enroll in CEP during the school year, they would have received: Over $45,000 in additional federal reimbursement when compared to federal reimbursement from Provision 2 during the school year as of October 31, Analysis of implementing CEP at individual schools did not include the impact on Title I funding or ranking. 5 All schools with positive results operated under Provision 2, with the exception of Turning Point (benefit of $46.49 during the school year). 6 Once enrolled in CEP, the base-year ISP carries through for a four-year cycle at individual sites sites may re-apply if their ISP increases during the cycle but the base-year ISP is locked-in for the cycle otherwise. 7 The calculated benefits are attributed to the same schools Nutrition Services identified in their March 2017 analysis. 11

45 WE RECOMMEND 9. Annually analyzing the potential benefit from Community Eligibility Provision participation, by individual school site, with considerations for Title I impact Providing the annual analysis of Community Eligibility Provision participation to management each year and request a determination. Document and maintain records of management determinations. Developing and implementing a procedure detailing the annual analysis of participation in Community Eligibility Provision, with considerations for Nevada Department of Agriculture student enrollment data. MANAGEMENT RESPONSE: We accept the recommendation. Nutrition Services is committed to analyzing potential benefits of Community Eligibility Provision, by individual school site, on an annual basis. Nutrition Services will draft a detailed procedure to include timelines and data sources so CEP analysis is performed following the same procedure year over year. Analysis data and recommendations will be shared with management each year no later than May 15. All recommendations and subsequent determinations will be maintained on file by Nutrition Services. Impact to Title 1 may be more difficult to assess. Traditionally Nutrition Services has provided income data via Free and Reduced Priced Meal applications for Title 1 reporting. Implementing a new provision which will remove this traditional data source could carry undue risk to Title 1 funding and may add additional administrative costs to the general fund. If Nutrition Services is no longer collecting this information, Title 1 schools may need to develop a process by which to collect, analyze, and report household financial data. There are currently multiple options for gathering this data, yet no clear recommendation from NDA and/or NDE on preference and/or potential impact. If schools decided to collect income data on their own this could increase administrative costs. Additionally, many households may not complete an application or income survey seeing as free meals are provided without one. This could result in lower numbers of economically disadvantaged households reported, and overall Title 1 funding may be negatively impacted as a result TIMELINE FOR IMPLEMENTATION: In collaboration with Nutrition Services and Internal Audit a process has been identified and Nutrition Services will utilize NDA direct certification and enrollment data to analyze potential benefits of provisions to include Provision 2 and CEP annually. Recommendations will be provided to management by May 15 of each school year. A more detailed process will be documented by December 31,

46 SCOPE The audit scope included July 1, October 31, METHODOLOGY To accomplish the audit objectives, we: Interviewed management and staff. Reviewed the Meal Charge Policy and unpaid balances. Analyzed CEP reimbursement compared to current procedures. Surveyed similarly-populated school districts to establish industry standards. Reviewed year-end student activity fund balances for available discretionary funds. AUDIT STANDARDS We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. 13

47 APPENDIX A Administrator Responses We contacted district administrators at all schools asking for input regarding the growing problem of unpaid meal balances. Below are the responses, organized by main focus for readability. We thank those administrators who were able to respond and appreciate their feedback. (Any details that might identify a school or person have been redacted.) Parental Communication and District Support 1. I think the district needs to draft a policy letter to parents that explains the action steps for unpaid balances. As a school we have no leverage. Some suggestions for action steps might include: free/reduced application required for all hot lunch families (to prevent families with low incomes from having negative balances front the start), informing parents of the possibility of missing out on school-wide activities for unpaid balances, etc... It also might be a good idea to have every parent set up a myschoolbucks account from the start or have them pay or get issued an IOU on the day they don t have $ and for every IOU that is not paid it changes the food items offered to them. But, it has to come from the district to build consistency and equitable practices. Thanks for the opportunity to respond to this question. It is extremely frustrating because although I call and send s, for most families I don t see any response and the unpaid balances keep accruing I think there are a lot of opinions, but the reality, I believe, is that there are many nuances to this debate. Our current structure does not provide any real incentives to people to quickly submit FRL applications, nor does it provide incentives for people to pay down or clear outstanding balances. Likewise, there no real leverage to bring when a family continues to build up larger and larger balances, or cannot pay down a balance, even after qualifying for FRL. I do not believe in meal shaming or denying a hungry child a meal I could go on and on. I think we could use more assistance in educating families with the importance of the completing the FRL application. Including when they are transferring from one school, to another and bringing a carryover balance. Hi Our cafeteria staff work closely with our office staff to let them know whenever a student requests a lunch, but has no money. Our office staff then calls the parent and tells the parent that we covered their child out of our own personal money for the day, as there is no school money to cover this, and we ask if they could pay us back. We send a follow up note and call every single day. Using this process, we have a relatively low balance of unpaid meals. If you d like more details, <<redacted>> would be a great contact. An important piece is the positive relationships she has built with families throughout the years. I think that our lunch balance is around $1,000 right now. I believe that we should make sure students eats, we do contact parents about lunch debts, but most parents are not sending in money. As a stand alone administrator, I honestly do not have time to follow up with families. We do have parents that either haven't filled out the lunch form or have filled it out correctly. Maybe if there was a group that could do home visits and bring the paperwork to sign that would help? 14

48 6. At <<redacted>>, our office staff and admin team are constantly working with parents/guardians to clear unpaid meals. We feel it is the parents responsibility to keep up with the account balances, and the NS site-team provides regular balance information to parents. We don t want students to be shamed because of an account balance that is beyond their control. Students are fed in our lunchroom even when they owe money, as we won t let a student go hungry. We could use helpful suggestions for working with parents, as we want account balances to remain low, as well. 7. We have had good success with asking our kitchen manager to send kids who don t have money to the office with a blank sticky note. We have them call parents to let them know they are borrowing from the office and then send them in with money. Parents are mostly good about paying us back and then the balances don t grow. It is handled easily and discretely. For the few kids whose parents won t pay, we just feed them. 8. We currently have an $1800 lunch balance. With current policies this debt will rise. We take A LOT of time to call parents and remind them of balance, and they also know we will feed their students for free no matter what. It seems to be a losing battle. We would never shame the kids, and I also feel we are teaching them and allowing parents to work this broken system we have. 9. We have seen an increase in students who do not have an account or do not have money for meals. Primarily, it is students who were on free or reduced lunch and the application expired. It would be nice to have a better way to communicate with families (I know there are letters that go out). Many of the kids have no idea their parent did not renew their application. Our Kitchen staff does an excellent job to ensure kids are fed and truly care about the well-being of our students. I appreciate them very much for all they do!!! I know this isn t much information, but hope it helps a little. 10. Most of my parents can pay their balances, however, when they read in the paper that the district covers whatever is owed at the end of the year, and we can t keep the report cards until balances are paid, etc., the parents have no reason to follow through and pay. My AP and I have both called for the past 6 years when the balance is over $50, s over $10 weekly. I have had parents say oh yes I ll sign up online and never do, etc. A couple of the families always have the best clothes, etc and don t pay their bill we are at a loss. A few of our worst offenders are actually parents that are employees of our district, they know that they can get away without paying. That might have been a tad to blunt and honest I m going to cc <<redacted>> to see if she wants to add anything. 15

49 11. We have about <<redacted>> kids who we have an issue with at this time. We give students who need meals credit on their account. Letters then go home if they are not paid for. Students are sent home with applications when it becomes an issue. Hope this helps! 12. I and call parents once they reach $10.00 owed. This takes a ton of time. I do ask parents to send in a cold lunch with their child until the balance is paid. I also send home a lunch application with each student with high balances. What can we do if a family refuses to pay? If a student does not bring a lunch but owes money, we ask the student to call the parent and then we give them the meal. Let me know if other schools are having success with a strategy that we aren t doing I work at <<redacted>> which is a Title I School. We have accumulated a very large debt for meals. We have tried every avenue we can to get parents to pay. It has gone out in newsletters, amount owed notices to parents from the cafeteria, personal phone calls, and s. We encourage all parents to fill out free/reduced lunch apps at back to school nights, registration, and evening events. I m not quite sure how to handle the problem, but it has taken a lot of time away for my staff and myself to continue to track down parents. With our parents that continue racking up debt, I think they have stopped answering the phone. Parents don t tend to follow up with the payments, even when they say they will bring money in that week. My fear is that they know their child will get to eat, so they just aren t paying. I completely understand the initiative of giving every child the same lunch, but it is turning into quite the problem. Any suggestions that you get on handling this would be much appreciated! Here at <<redacted>>, we continue to feed our students (only have <<redacted grade levels>>) and do not let them know if they do not have money on their account or if they are in debt. Students between the age of <<redacted>> that we service really do not need that stress in their life. That said, we do send home the overdue balance notes and send out connect ed calls along with personal calls for overdue accounts. It is a lot of time that is spent by my clerk doing so and our recovery rate for the time spent in making the personal calls is very low. For a school with <<redacted>> students and a clerk that is only 4.2 hours per day, it is not always feasible to call every day. Thank you for asking for the input. 15. My vote is that all kids should eat, because their basic needs should be met before they can be expected to learn. We, at <<redacted>>, do make phone calls weekly to try and remind parents of their balances and to fill out forms if they wish 16

50 Parental Communication, District Support, and Courtesy Meals 16. I believe our biggest problem are parents with high balances who continually assure us they will pay but don t. I have one parent close to $200. She does not qualify for FRL and tells me she can pay. I don t think the school has enough clout behind us for these big balances. I also wish it were possible to provide a simple sandwich and milk for those who owe more than $ It may make the parents pay attention more. A bigger push in the beginning of the year to get lunch applications completed may also be helpful I m not sure what the answer is. It is definitely a problem. The letters home seem to work for a small portion (the ones who have the money and forgot or didn t realize) but for the families who don t have the money it is just another notice in the mail that they owe money. I assume they will be paying the electric bill first and us last. I have been able to work out payment plans for some and parents have changed their lunch plan (go to cold lunch) in other cases. Most, however are another thing on my list of people to call and things to do that don t have anything to do with instructional leadership. It d be financially responsible to add a few hours each week to the nutrition service manager so they can call. I don t see cheese sandwiches as lunch shaming as long as we re doing a good job of informing the specific parents of the consequences to lunch debt. I d hate for it to be a surprise to parents. I m not sure what the answer to the growing debt is. I talk to my parents (back to school assembly, monthly newsletter, robo-calls) from the beginning of the year forward about hot lunches. I put a link on [our] website for the online hot lunch application. I make personal phone calls when time permits, but many parents just think it s the school s (or district s) responsibility to pay for their child s lunch. I never want to see a child go hungry but I also don t like being taken advantage of and that s how it feels. I don t agree with the lunchshaming but if there is a less expensive lunch a non-payer can receive then I am all for that, just to keep costs down. Thanks for asking for input from administrators, 19. We are noticing that we are having a much more difficult time collecting since it was made public that we wouldn t deny meals. The office staff is very diplomatic in following up and communicates that any amount families could send in would be appreciated. In an <<redacted>> school, the goal is to make sure kids have a nutritious lunch- it doesn t need to be the same meal as everyone else s- the kids may be sad about the option-but not because they have been shamed. Each school is unique in their population. Unfortunately we have many families on the cusp of qualifying for FRL, and some not comfortable filling out the form. 17

51 Alternative Funding 20. I don t really have a solution that is realistic. We try really really hard to get parents to see if they qualify for FRL and call weekly about balances. I wonder if a business partner can help pay for the funds?? We make it a policy to serve all students with no questions. We have a local church that collects money for our unpaid lunches at the end of the year. If that were not in place, our school would be unable to pay for the unpaid balances. I always feed all of our students if they don t have any money. I work with the NS staff and pay out of my principal s account. It is a small number. I did the same when I was principal at <<redacted>>. I set aside a few hundred dollars a year to cover kids who couldn t pay, and then I worked with the parents to apply for FRL. We just call home when kids forget money and pay off balances when they start adding up (me personally) but we never have much of a problem and never a big balance! Definitely no hungry kids or separating them/not feeding them etc...that s pretty crazy in my mind. Combination of Options 24. At <<redacted>>, we send home weekly notices and quarterly balance letters asking for payments. My PIF and I both make phone calls and I have started sending out s. My PIF has also acquired monetary donations to help pay off FRL balances prior to applications being approved. My counselors and staff bring up meal balances when talking with families. It is a lot and I never thought we would become debt collectors. I have a couple suggestions: Kitchen Managers or on-site food service workers make phone calls every week and keep a log of who was contacted. When a balance hits over $25, then the PIF or office staff will make calls. When the balance hits over $50, then administration can call Nutrition Services - send home individual letters reminding families to apply for FRL each year and when balances will start to accumulate. This might have to happen a few times. Nutrition Services - send out Connect Ed messages to specific families, if possible. 4. Limit food choices to the main meal and one alternative. This will reduce food waste and ensure students receive the lunch item they really want. I often see the kitchen run out of the favored item (chicken nuggets), but once a class or two go through, the workers put out more nuggets. This creates discontent and students have learned to fall out of line and join another class who haven t come through yet just so they have a chance of getting the food they want. It would be nice to have share buckets where we can openly share unopened food items AFTER students have gone through the lunch line. This would help address number 4. The bigger problem I see are with the 5th and 6th graders who choose not to eat at all. They don t bring food from home and they don t go through the lunch line. We address it by saying they have to eat something, but I hear too often their parents tell them not to eat because they can t afford the daily cost and to get food from friends. By the afternoon, kids are hangry. Hope this helps and thank you for asking for feedback, 18

52 Reduced Office Follow-up 25. School teachers, admin and secretarial staff cannot be the ones responsible for collecting lunch debt. Miscellaneous 26. We are 100% free and it is the greatest thing ever. I can t imagine having to chase down lunch debt on top of everything else I understand the issue from previous positions. At <<redacted>> we feed 100% of our students so we do not have this issue <<Redacted>> is a Provision 1 school. I am in the same boat at <<redacted>> as <<redacted>>. We feed 100% of our students. We feed 100% of our students. There are occasions where I feel that parent follow-up or lunch shaming occasionally occur this is rare. Let us know if you require anything further from us We are a Prov 2 school We do not have Nutrition Services, so I don t know. Sorry. Good luck. 19

53 APPENDIX B Major Contributors to this Report and Report Distribution Major Contributors to this Report Matt McMahon, Auditor in charge Paula Ward, CPA, Chief Auditor Report Distribution Traci Davis, Superintendent Pete Etchart, Chief Operations Officer David Lasic, Chief of Staff Mark Mathers, Chief Financial Officer Lianka Soliz, Nutrition Services Director Michael Supple, Nutrition Services Assistant Director 20

54 APPENDIX C Management Responses and Timelines for Implementation 1. Enforcing parental accountability when meal charges become delinquent. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: We accept the recommendation. Nutrition Services agrees that enforcing parental accountability when meal charges become delinquent is important. Nutrition Services will draft a proposed Tiered Parental Accountability Plan which pending approval by the board of trustees will be presented as a recommendation for amendment to Board Policy 7546, School Nutrition Services. The proposed Tiered Parental Accountability Plan will include multiple opportunities, consisting of multiple communication platforms, for households to replenish funds, submit meal applications, and/or communicate a hardship. The plan will be compassionate and at no time will the District shame a child. The plan will specify tiered communication action based on a negative dollar account balance verses a set number of charged meals. Utilizing this approach will streamline reporting, data analysis, and is more in line with our POS reporting features. The District will work with any parent that claims hardship for any reason to set up a payment plan and to determine if the household qualifies for Free or Reduced Prices Meal Benefits. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval the draft will be finalized by June 30, Referring bad debt to outside collections once in-house collection efforts are exhausted. Maintain records upon converting unpaid meal charges to bad debt. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: Business and Finance agrees with this change. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval a process will be finalized by June 30,

55 3. Carrying over delinquent debt (unpaid meal charges) attributed to paid students each year so in-house collection efforts may continue. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: Business and Finance agrees with this change as long as the Board of Trustees School Nutrition Policy allows for collection efforts or a meaningful change in the notification/communication process. Otherwise, based on the results of the current process, simply carrying over delinquent debt without a significant change in policy or approach would only have the effect of overstating assets of the fund in the current fiscal year and deferring the write off of uncollectible debt. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval the draft will be finalized by June 30, Considering alternative sources of funding to restore any operational loss incurred from unpaid meal charges. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: Do not accept. Currently the Nutrition Services a la carte and catering funding sources are not capable of subsidizing the district negative balance totals, especially with unlimited charging at all elementary schools. Further, schools should not be required to use their student activity funds (SAF), which are funds raised and collected by the school to improve the overall educational experience of children. Typically, SAF are generated through specific fundraising activities by the entire school for specific purposes and should not be used to pay for a select sub group. 22

56 5. 6. Documenting revisions to collections procedure. Developing and implementing a charge policy that communicates the district s expectations regarding parental accountability and unpaid meal charges. During the February 27, 2018 Board Meeting, the Board of Trustees provided direction to the Superintendent on possible changes to Board Policy 7546, School Nutrition Services, and included the development of a compassionate process, with clear steps to help families with debt over an appropriate amount that may lead to collections if all other options are exhausted (Agenda Item 3.07). MANAGEMENT RESPONSE: We accept the recommendation. Nutrition Services agrees, and as stated above under Recommendation 1, Nutrition Services will draft a proposed Tiered Parental Accountability Plan which will be presented as a possible addition to the current Meal Charge Policy laid out in Board Policy 7546, School Nutrition Services. The plan will communicate expectations regarding parental accountability with regards to unpaid meal charges. Furthermore the plan will be compassionate and at no time during the plan execution will the District shame a child. TIMELINE FOR IMPLEMENTATION: A draft of the proposal will be presented to board by May 1, Pending board approval the draft will be finalized by June 30, Contacting households about returning or donating any unused meal funds when any child leaves the district or graduates. Developing and implementing a procedure detailing the handling of unused meal funds upon a student s departure from the district. During the February 27, 2018 Board Meeting, the Chief Operating Officer stated that the Office of Business and Finance is working to initiate a process to reach out to account owners of the inactive accounts where the student is no longer enrolled in the WCSD and has a material balance still on their account [ ] to see if they would be willing to donate their unused balance to partially offset the meal account delinquent debt. MANAGEMENT RESPONSE: We accept the recommendation. Business and Finance is developing a process for notifications to account owners of inactive/dormant accounts. TIMELINE FOR IMPLEMENTATION: We are still researching, tentatively a process will be finalized by December 31,

57 Annually analyzing the potential benefit from Community Eligibility Provision participation, by individual school site, with considerations for Title I impact. Providing the annual analysis of Community Eligibility Provision participation to management each year and request a determination. Document and maintain records of management determinations. Developing and implementing a procedure detailing the annual analysis of participation in Community Eligibility Provision, with considerations for Nevada Department of Agriculture student enrollment data. MANAGEMENT RESPONSE: We accept the recommendation. Nutrition Services is committed to analyzing potential benefits of Community Eligibility Provision, by individual school site, on an annual basis. Nutrition Services will draft a detailed procedure to include timelines and data sources so CEP analysis is performed following the same procedure year over year. Analysis data and recommendations will be shared with management each year no later than May 15. All recommendations and subsequent determinations will be maintained on file by Nutrition Services. Impact to Title 1 may be more difficult to assess. Traditionally Nutrition Services has provided income data via Free and Reduced Priced Meal applications for Title 1 reporting. Implementing a new provision which will remove this traditional data source could carry undue risk to Title 1 funding and may add additional administrative costs to the general fund. If Nutrition Services is no longer collecting this information, Title 1 schools may need to develop a process by which to collect, analyze, and report household financial data. There are currently multiple options for gathering this data, yet no clear recommendation from NDA and/or NDE on preference and/or potential impact. If schools decided to collect income data on their own this could increase administrative costs. Additionally, many households may not complete an application or income survey seeing as free meals are provided without one. This could result in lower numbers of economically disadvantaged households reported, and overall Title 1 funding may be negatively impacted as a result TIMELINE FOR IMPLEMENTATION: In collaboration with Nutrition Services and Internal Audit a process has been identified and Nutrition Services will utilize NDA direct certification and enrollment data to analyze potential benefits of provisions to include Provision 2 and CEP annually. Recommendations will be provided to management by May 15 of each school year. A more detailed process will be documented by December 31,

58 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 The Internal Audit Department, within six months after the Audit Committee releases the final audit report, and annually thereafter until all recommendations are implemented, shall evaluate the steps the department has taken to implement the recommendations and shall determine whether the steps are achieving the desired results. The chief auditor shall report the follow-up results to the committee and department officials. To prepare this report, we met with department staff, reviewed department assessments of audit status, and reviewed documentation provided by departments. The Internal Audit Department would like to thank the Transportation Department for their assistance in compiling this report. IMPLEMENTATION STATUS OF OPEN RECOMMENDATIONS: 6 Not Implemented 7 Partially Implemented 14 Fully Implemented The following report contains the status of the recommendations and the follow-up performed by the Internal Audit Department. 1

59 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Create and implement a policy: a. Requiring employees fuel district-owned vehicles at district or other government sites. b. Defining specific circumstances when alternative gas stations would be acceptable. INITIAL MANAGEMENT RESPONSE ACCEPT with some stipulations District procedures and guidelines with stipulations to use the District and designated government fueling facilities are attached. Certain divisions that at times do not use the District and government fueling stations are typically divisions that due to their type of service must at times use public fueling sites (i.e. School Police, Facilities Management, Administration Building Administrative Leadership). Certain District regions do not have access to District facilities or government sites for fueling. Natchez, Gerlach, and Incline are examples of areas with this lack of access. In addition, when buses or other District personnel using white fleet vehicles travel out of Reno/Sparks proper to other counties or states (California), they do not have access to other government entities for fueling and must use public fueling sites. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE On September 22, 2015, the Board of Trustees approved revisions to Board Policy 7505, one of which was the responsibility of employees to fuel at District approved facilities. (1.a.) The Transportation Department has defined specific circumstances when employees can fuel at non-government sites (e.g. when a site is not available, closed, inoperable, or not within a reasonable distance) and sends a monthly reminder to employees. (1.b.) This recommendation is considered fully implemented. This recommendation 2

60 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Require employees use district-owned vehicles when available. INITIAL MANAGEMENT RESPONSE NOT ACCEPTED The only facility that may be able to reasonably require employees to use District-owned vehicles as a primary source of transportation is the Administration Building based on the number of Pool Vehicles there. The other divisions and school sites do not have access to pool cars. The recent deletion of White Fleet vehicles that were sent to auction in October 2014 and April 2015, while reducing District expenditures, left a number of departments without pool car access. Those that do have car pool access are as follows: Administration Building 4 Pool Cars available for all departments except IT and School Police IT has 9 Field Tech cars at the Administration Building Transportation has 3 Standby Driver Cars 1 for each yard Central, North, & South. These are used by Standby Substitute Drivers to go from Yard to Yard to cover bus routes for drivers that called in and are not available to drive their normal route. Items for consideration: Transportation researched in depth to ensure all data was collected pertaining to the cost per mile for pool vehicles as opposed to using mileage for use of an employee-owned vehicle for District business (i.e. attending a meeting off site). It was found that fuel, salary, and repair were designated in the cost per mile and accounted for the.42 per mile. This does not include the cost for employee benefits and administrative costs. This additional cost added.17 to the total which raised the cost to.59 per mile as opposed to the.56 in This cost was raised to 57 per mile charged in 2015 for mileage as set by the IRS. Those vehicles designated in the report that could facilitate a savings are designated for executive level administrative leadership. There are other costs that would offset the use of these vehicles being designated in a vehicle pool. Those costs include time for the Administrator to get the pool vehicle at the designated parking area and then drive to their destination. The hour savings of labor time for an executive level administrator would more than make up for the mileage savings cost at.57 a mile. (i.e. 20 miles from the parking area to their destination and back at.57 a mile would be a cost of $22.80.) FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS For fiscal year , the district reimbursed employees approximately $391,000, up $22,000 from fiscal year As mileage reimbursements rose, actual federal rates declined by two to two and a half cents per mile. Sixty-six percent (66%) of the reimbursements can be attributed to nine district locations, including the Administration Building (greenhouse). Strategically placing white fleet cars at these locations may reduce the amount the district reimburses employees. 3

61 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 MANAGEMENT RESPONSE Based on Business and Finance s initial review of take-home vehicles, which was prepared during the FY19 process in response to a question from a Board Trustee, we believe that a comprehensive review and possible change to the District s take-home vehicle practices and other practices with regard to the white fleet is appropriate. This review could result in the creation/expansion of a motor pool at the WCSD administration building or conversely elimination of all motor pool and take-home vehicles, to be replaced with stipends or mileage reimbursement for managers. Until that review is completed, we cannot agree that all employees should be directed to use district-owned vehicles when available, as a policy. It may be appropriate and more cost-effective to eliminate all pool vehicles and reimburse employees at the full IRS rate. Also, the total mileage reimbursements noted above includes reimbursements to personnel at outlying locations in which a District vehicle is not available. We doubt it would be cost-effective to have District vehicles located at all locations in which a District employee travels. This recommendation is considered not implemented. 4

62 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Require employees provide documentation that no cars were available when requesting reimbursement. INITIAL MANAGEMENT RESPONSE NOT ACCEPTED As stated in Recommendation #2, based on the number of pool vehicles in the District, there is only one area (the Administration Building) that has the vehicle resources to require staff to do this. The other divisions have no access or very limited access to pool cars. Also as stated previously the cost per mile of white fleet vehicles in other divisions is.59 per mile as opposed to the.57 per mile for mileage reimbursement. Even if a reasonable documentation enforcement vehicle is presented as Internal Audit has endeavored to do, it would only be viable at the Administration Building in a limited capacity. It would then need to be determined as to what department at the Administration Building would provide oversight of the Pool Vehicles. We do not believe there is a cost effective, reasonable enforcement process for this proposed documentation process. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS No change. MANAGEMENT RESPONSE Based on Business and Finance s initial review of take-home vehicles, which was prepared during the FY19 process in response to a question from a Board Trustee, we believe that a comprehensive review and possible change to the District s take-home vehicle practices and other practices with regard to the white fleet is appropriate. This review could result in the creation/expansion of a motor pool at the WCSD administration building or conversely elimination of all motor pool and take-home vehicles, to be replaced with stipends or mileage reimbursement for managers. Until that review is completed, we cannot agree that all employees should provide documentation that no cars are available when requesting reimbursement. It may be appropriate and more cost-effective to eliminate all pool vehicles and reimburse employees at the full IRS rate. This recommendation is considered not implemented. 5

63 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Create a policy establishing employees using personal vehicles will not be eligible for reimbursement or will only receive half the reimbursement per NRS INITIAL MANAGEMENT RESPONSE NOT ACCEPTED The White Fleet Committee is continuing to work on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: Transportation has been investigating the creation of a stipend program based on current vehicle usage that would be similar to the cell phone stipend program. Transportation has looked at the stipend programs and mileage programs from other public entities in Washoe County and Clark County. All of the identified programs provide full mileage compensation, or a stipend, for use of their private vehicles for work purposes. This information and data has been provided to the Chief Operations Officer and the Superintendent by the White Fleet Committee (representatives from Transportation, Business, School Police, Facilities Management, and Education). FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS On March 30, 2018, the district revised the staff travel policy, Administrative Regulation 3350 Staff Travel Approval and Reimbursement Procedures to align with GSA per diem rates and provide comprehensive procedures for claiming travel expenses. As a general protocol, 2. d. states: The District s travel reimbursement protocols shall comply with the State of Nevada, State Administrative Manual, the United States General Services Administration per diem rates, or the Internal Revenue Service, as indicated and unless otherwise noted. The State Administrative Manual 0218 (page 8) specifically states: Employees may be reimbursed for the following: 6. Using his/her own personal vehicle for his/her own convenience at one-half the standard mileage reimbursement rate. MANAGEMENT RESPONSE NRS does not require that employees receive half reimbursement for use of personal vehicles. It requires the State Board of Examiners to adopt regulations, and shall require other state agencies to adopt regulations, for reimbursement of travel expenses. Section 0206 of SAM allows for agency-specific rules. It states that: Because of the variety of situations faced by State agencies, it is important for State agencies to adopt agencyspecific policies. The Board of Examiners instructs all agencies to carefully review travel requirements and to adopt detailed policies consistent with the Board of Examiners travel policy and within the legislatively 6

64 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 approved travel budget authority. These policies should address, but may not be limited to, the following situations: 1. The hours and conditions during which an employee will be allowed to claim meals; 2. Overnight lodging, vehicles and per diem allowances within fifty (50) miles principal duty station, if approved by the Board of Examiners; 3. Combining State business and personal travel; 4. Out-of-State travel requests; 5. Employees traveling as members of non-state agencies; 6. Use of private aircraft; This recommendation is considered fully implemented. 5. Eliminate take-home vehicles. INITIAL MANAGEMENT RESPONSE NOT ACCEPTED The White Fleet Committee is continuing to work on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: Only divisions designated for emergency response are currently allowed to take a company vehicle home. This would include designated personnel out of School Police, the Emergency Service Manager, and the Child Advocates office. Certain positions on the Executive Leadership Administrative Team need to be considered by the Superintendent or Superintendent Designee to have the authorization to take their assigned vehicle home for operational efficiency. It is inefficient to require Executive Leadership Administrative Team members to first report to their duty station before traveling to school sites or to meetings. Losses in productivity would vastly outweigh any financial savings attributed to this recommendation. 7

65 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS DISTRICT POSITIONS NUMBER OF VEHICLES AS OF NOVEMBER 2015 AUDIT NUMBER OF VEHICLES AS OF DECEMBER 31, 2017 Deputy Superintendent 1 1 Chief of Staff 1 1 Chief Academic Officer 1 1 Senior Director Student Accounting 1 1 Executive Directors Student Support Services 1 2 Chief School Accountability Officer 1 1 Area Superintendents 7 5 School Principal (Incline) 1 0 Chief Capital Projects Officer 1 1 Deputy Facilities Management & Capital Projects Officer 0 1 CIT Coordinator 0 1 Drop-Out Prevention 0 1 Office Of School Performance 0 2 Office Of Student Services/Support Services 0 3 Chief Ombudsman & Strategies Officer 0 1 TOTAL TAKE-HOME VEHICLES Since the release of the Transportation Audit, the district increased the number of take home vehicles for administrative positions from fifteen to twenty-two vehicles. In addition, we found that the same five districts surveyed during the 2015 audit, including Clark County School District, continue to disallow take-home vehicles for area superintendents or other administrative positions. By eliminating take-home vehicles, the district would save approximately $26,000 to $32,000 annually in fuel and maintenance expenses; and free up twenty-two vehicles to better serve district needs while reducing travel reimbursements given to employees. 8

66 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 MANAGEMENT RESPONSE We concur that this issue needs to be reviewed, but we do not agree with elimination of all take-home vehicles at this time. Although we agree that the number of take-home vehicles should be reduced, we do not agree it would be costeffective to eliminate take-home vehicles for all administrative staff and we believe it is premature to consider expansion of a motor pool, as it may be more economical to eliminate all pooled cars. During the FY19 budget process, Transportation and the Office of Business and Finance reviewed usage of non-law enforcement take-home vehicles for FY 16 and FY17. A total of 22vehicles were included in this analysis. A copy of the analysis that was provided to the Board of Trustees is provided. As noted in the analysis provided to the Board, for managers who log a significant number of miles traveling to and from schools during the work week, there would be a net cost to reimburse those managers for mileage, or in some cases, minimal savings. In these cases, the lost productivity of managers traveling past locations to pick up or drop off a motor pool vehicle is another important factor that was not quantified here, but based on break-even analysis, indicates would likely create a net financial loss for the District. We recommend these managers continue the use of a take home vehicle or provide a stipend. However, there were a number of vehicles that had low mileage (less than 5,000 miles per year), and as noted to the Board, we believe further review of these cases is warranted. We concur that for certain positions that log low mileage annually and are located at the administration building, the District should consider eliminating take-home vehicles and use alternative arrangement such as a stipend, mileage reimbursement or possible motor pool vehicles. This will be reviewed by the White Fleet Team beginning this year. We also concur that replacement of vehicles with low mileage for certain positions is not warranted. This recommendation is considered not implemented. 6. Assign vehicles to better serve district needs (i.e. motor pool, bond vehicle). INITIAL MANAGEMENT RESPONSE ACCEPT The White Fleet Committee has been collecting data and developing processes during the previous 12 months to establish criteria for vehicle use by departments, departmental divisions, position criteria, etc. Based on the collected data, Transportation did a reassignment of six vehicles during the school year for the school year. Item for consideration: 9

67 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 Purchase of White Fleet vehicles by certain funding sources (i.e. Grant Funds, Bond Funds, Enterprise Funds, etc.) require those vehicles stay with those divisions or school sites that the funding designates. The vehicle identified as being purchased with Bond Funds will be returned to the Capital Projects Department. TIMELINE FOR IMPLEMENTATION: This has been implemented beginning April 2015 and will be monitored annually by the White Fleet Committee to ensure vehicle use is equitable. Procedures have been developed that determine vehicle placement, replacement, or discontinuing vehicle use completely based on the annual Utilization Analysis Report. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS For fiscal year , the district reimbursed employees approximately $391,000, up $22,000 from fiscal year As mileage reimbursements rose, actual federal rates declined by two to two and a half cents per mile. Sixty-six percent (66%) of the reimbursements can be attributed to nine district locations, including the Administration Building (greenhouse). Strategically placing white fleet cars as pool cars at these locations may reduce the amount the district reimburses employees. MANAGEMENT RESPONSE Based on Business and Finance s initial review of take-home vehicles, which was prepared during the FY19 process in response to a question from a Board Trustee, we believe that a comprehensive review and possible change to the District s take-home vehicle practices and other practices with regard to the white fleet is appropriate. This review could result in the creation/expansion of a motor pool at the WCSD administration building or conversely elimination of all motor pool and take-home vehicles, to be replaced with stipends or mileage reimbursement for District staff. Also, the total mileage reimbursements of $391,000 noted above includes reimbursements to personnel at outlying locations in which a District vehicle is not available. We doubt it would be cost-effective to have District vehicles located at all locations in which a District employee travels. This recommendation is considered not implemented. 7. Create and implement policy and procedures specific to when take-home vehicle usage is appropriate (i.e. school police and on-call positions). INITIAL MANAGEMENT RESPONSE ACCEPT with stipulations The White Fleet Committee is currently working on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Policy and procedures will be created and implemented regarding when take-home vehicle usage is appropriate (i.e. School Police and on-call positions) pending the final outcome of recommendation 5. 10

68 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 Items for consideration: School Police vehicles are allowed to be taken home as per their negotiated agreement with the Washoe County School District. The Emergency Manager vehicle and the Child Advocate vehicle are designated as Emergency Response vehicles and are designated through the District as vehicles that response time is critical and are allowed to be taken home. As stated in Recommendation 5, In addition, certain positions on the Executive Leadership Administrative Team need to be considered by the Superintendent or Superintendent Designee to have the authorization to take their assigned vehicle home for operational efficiency. It is inefficient to require Executive Leadership Administrative Team members to first report to their duty station before traveling to school sites or to meetings. Losses in productivity would vastly outweigh any financial savings attributed to this recommendation. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS On September 22, 2015, the Board of Trustees approved the revision of Board Policy Use of District Vehicles. The policy states: 3. Housing and Maintenance of District-Owned Vehicles a. District-owned vehicles will be housed at District locations designated by the Transportation Department, with the following exceptions: school police vehicles and designated transportation vehicles. During periods of inclement weather or after hour emergencies, other exceptions will be made only on the basis of demonstrated cost-effectiveness and upon the approval of the Superintendent. We performed an analysis of take-home vehicles for area superintendent positions during this follow-up to determine if the original recommendation was still applicable. We looked at whether it was more efficient and effective to provide take-home vehicles to area superintendents because the schools they oversee were on the way from their homes to their primary place of work (425 E. Ninth Street). Only 16 of 93 schools were on the way from the area superintendents homes to their primary place of work, making take-home vehicles not cost effective. Although Board Policy has been created, cost-effectiveness has not been demonstrated as required by Board Policy MANAGEMENT RESPONSE We concur that this issue needs to be reviewed, but we do not agree to elimination of all take-home vehicles for administrative staff. As noted in our response to Recommendation #5, during the FY19 budget process, Transportation and the Office of Business and Finance reviewed usage of non-law enforcement take-home vehicles for FY 16 and FY17. A total of 22 vehicles were included in this analysis. A copy of the analysis that was provided to the Board of Trustees is provided. As noted in the analysis provided to the Board, for managers who log a significant number of miles traveling to and from schools during the work week, there would be a net cost to reimburse those managers for mileage, or in some cases, minimal savings. In these cases, the lost productivity of managers traveling past locations to pick up or drop off a motor pool vehicle is another important factor that was not quantified here, but based on break-even analysis, indicates would likely create a net financial loss for the District. We recommend these managers continue the use of a take home vehicle or be provided a stipend. 11

69 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 We believe an analysis of the cost effectiveness of take-home vehicles for area superintendents needs to include more than the location of schools compared to the home residence of the area superintendent. The analysis should consider the number of work-related miles driven annually as well as consideration of before-work and after-work functions. In addition, the FY19 budget includes the deletion of an area superintendent position; thus, area superintendents will have more schools in their zones beginning next fiscal year, which will require them to drive more miles and to more schools. However, there were a number of vehicles that had low mileage (less than 5,000 miles per year), and as noted to the Board, we believe further review of these cases is warranted. We concur that for certain positions that log low mileage annually and are located at the administration building, the District should consider eliminating take-home vehicles and use alternative arrangement such as a stipend, mileage reimbursement or possible motor pool vehicles. This will be reviewed by the White Fleet Team beginning this year. We also concur that replacement of vehicles with low mileage for certain positions is not warranted. This recommendation is considered partially implemented. 8. Reevaluate and update policies and procedures to ensure utilization requirements are appropriate. INITIAL MANAGEMENT RESPONSE ACCEPT with stipulations The White Fleet Committee is currently working on this item in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: The Administrative Regulation is specific for overall operational efficiency for the District, but certain division requirements are not so easily defined in the confines of this requirement and may need some broader language as determined by designated assignment or overall District need. Washoe County School District Administrative Regulation Use of District Owned Vehicles Assignment of District-Owned Vehicles a. District-owned vehicles may be assigned to individuals or departments when at least 1,000 miles of travel per month are required for District business. The majority of School Police vehicles, the Emergency Manager Vehicle, and the Child Advocate vehicle do not reach this requirement monthly. This would include executive level administrators who are required to be off site on a regular basis for meetings, school site issues, and other community events, but will not exceed the 1,000 miles per month threshold. b. All District-owned vehicles are available to best serve employee transportation needs of the District, and no vehicle is considered permanently assigned to any individual or department. School Police and Facilities Management and Capital Projects are examples of divisions that require specific types of vehicles that have to be specifically assigned to the division or persons/positions within the division. 12

70 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 District-owned vehicles are to be used for official business only. Employees shall not use the vehicle for personal use (e.g. shopping after work hours, transporting family members, or hauling personal items). Should a person have to take a District vehicle to his/her residence during the work day, the person must first notify his/her immediate supervisor. FOLLOW-UP JUNE 28, 2018 MANAGEMENT RESPONSE The Policy was 7454 and was aligned with Administrative Regulations 7454, , and In the interim, parts of Administrative Regulations 7454, and have been reviewed, adjusted, and added to Board Policy The remaining items on these Administrative Regulations, including item a. above, are currently in revision and review with Transportation, the White Fleet Team, and the Office of the Superintendent to be built into Board Policy The threshold on mileage for district assigned vehicles, including take home vehicles, is being reassessed as this was established in In the research by the groups mentioned above, it has been found that many public entities and School Districts have revised their standards to a threshold of 500 to 600 miles per month for assigned vehicles. This Policy is still in the draft and review stages and these findings will be brought forward if a recommendation is made in Board Policy 7506 to align with a lower mileage threshold for all assigned district vehicles, including take home vehicles. INTERNAL AUDIT ANALYSIS Review of documents provided by the Transportation Department revealed the district is reevaluating the thresholds originally set in policy 7505 and new administrative regulations are in draft format. This recommendation is considered partially implemented. 9. Monitor white fleet usage and reassign vehicles to departments/motor pools where utilization requirements will be met, or 10. Reduce the white fleet accordingly. INITIAL MANAGEMENT RESPONSE ACCEPT with stipulations As indicated in recommendation #6, Transportation did a reassignment of some vehicles during the school year for the school year. Vehicles were reassigned to the following departments to better facilitate use and efficiency for the vehicle and the department for the school year. The departments are: Family School Partnership, Washoe Inspire Academy, Office of School Performance, Special Education Student Support Services - student transport, Facilities Management Housekeeping 13

71 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 Operations Field Supervisor Incline/South Reno, and Curriculum & Instruction. In addition, a vehicle was replaced for Drop-Out Prevention/Truancy for a vehicle that lost an engine. In addition, the white fleet was reduced by sending 27 vehicles to auction in October 2014 and sending 9 vehicles to auction in April The white fleet committee will continue to assess the white fleet and make reductions in vehicles as needed. TIMELINE FOR IMPLEMENTATION: Currently evaluate daily and monthly. Adjustments are being made accordingly. Policies and processes are currently in review for refinement and updating through the White Fleet committee. FOLLOW-UP JUNE 28, 2018 MANAGEMENT RESPONSE When the information was provided for the School year Transportation reassigned under-utilized vehicles to the following divisions for the school year. They were reassigned to the following divisions, Family School Partnership, Washoe Inspire Academy, Office of School Performance, Special Education Student Support Services - student transport, Facilities Management Housekeeping Operations Field Supervisor Incline/South Reno, and Curriculum & Instruction. In addition, a vehicle was replaced for Drop-Out Prevention/Truancy for a vehicle that lost an engine. Transportation sent 8 white fleet vehicles to auction in the school year. Transportation sent 30 white fleet vehicles to auction in the school year. Transportation sent 11 white fleet vehicles to auction in the school year. Transportation has continued to reassign vehicles due to position deletions or additions and division use. The vehicle use is reviewed monthly and is adjusted annually. INTERNAL AUDIT ANALYSIS Although the Transportation Department has auctioned off vehicles the past three years, white fleet purchases have actually exceeded the number of white fleet vehicles auctioned off during the same period. However, the Transportation Department has reassigned vehicles to assist in meeting utilization requirements as recommended in 9 above. These recommendations are considered fully implemented. 14

72 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Create a policy requiring all employees who might use a district-owned vehicle take the district s defensive driving class. INITIAL MANAGEMENT RESPONSE ACCEPT Established in Board Policy 7505 Use of District-Owned Vehicles. Referenced directly in Administrative Procedure 7550 Transporting Students in a Private or White Fleet Vehicle Draft. FOLLOW-UP JUNE 28, 2018 MANAGEMENT RESPONSE Previously, the Office of School Police was charged with the responsibility of providing Defensive Driving Classes and materials to needed personnel. Upon evaluating the cost of resources and the District s ability to provide these services through its online continuing education software (MyPGS)/Safe Schools, Chief Trevino discontinued the classes out of his department and coordinated with Human Resources (HR) to have the needed modules for certification available to all in need online. Transportation is now taking the steps needed to work with HR to identify those employees who are currently driving a district vehicle or those who are likely to drive a vehicle categorized in the software so that it will automatically notify and require updates annually. Initially, they will be required to take all four (4) Defensive Driving Modules needed for certification with an annual module rotation for review. INTERNAL AUDIT ANALYSIS The Transportation Department is working to notify employees driving district vehicles that they must take the Defensive Driving classes now offered through online continuing education. An administrative regulation is in the draft stages. This recommendation is considered partially implemented. 12. Require employees who currently drive district-owned vehicles, but have not completed the defensive driving class, take the course. INITIAL MANAGEMENT RESPONSE ACCEPT with stipulations As referenced in Recommendation #11 Policy and Administrative Regulation in place. Documentation of course completion required for Transportation approval to drive a student in a District vehicle as referenced in Administrative Form 7576 Annual 15

73 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 Request to Transport Students. Transportation only approves ability to drive students in District Vehicles if the driver provides a copy of the WCSD issued Defensive Driving Certificate. Item for consideration: To require any current employee driving a District vehicle to take the WCSD Defensive Driving Course who has not completed the course will require assistance from all departments assigned district vehicles to coordinate with School Police to sign their employee up for the WCSD Defensive Driving Course and not allow their employee to drive a District vehicle until the employee has their certificate. This purview would fall under School Police as they provide the training classes and certifications for the WCSD Defensive Driving course. FOLLOW-UP JUNE 28, 2018 MANAGEMENT RESPONSE Transportation is now taking the steps needed to work with HR to identify those employees who are currently driving a district vehicle or those who are likely to drive a vehicle categorized in the software so that it will automatically notify and require updates annually. Initially, they will be required to take all four (4) Defensive Driving Modules needed for certification with an annual module rotation for review. INTERNAL AUDIT ANALYSIS Internal Audit confirmed that the initial steps are in process. This recommendation is considered partially implemented. 13. Obtain proof of course completion prior to issuance of a driver ID/PIN. INITIAL MANAGEMENT RESPONSE ACCEPT A procedure is in place that when a request is placed by a department for the issuance of a driver ID/PIN number for driving and fueling a District vehicle that the following occurs: Transportation contacts School Police to verify that the employee has taken and completed the WCSD Defensive Driving Course. If employee has taken and completed the course the Transportation Fleet Operations Manager approves the issuance of the driver ID/PIN number by the vendor to the employee. If employee has not taken or completed the course the Transportation Fleet Operations Manager denies the issuance of the ID/PIN number and informs the department of the denial of the request. 16

74 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE Internal Audit review of transportation documents and discussion with the department revealed this procedure has been implemented. This recommendation is considered fully implemented. 14. Separate collection duties by: a. Designating an individual (excursion technician) to receive and restrictively endorse checks when received. b. Designating a second individual (excursion manager) to verify the check amount and safeguard funds until sent to the business office for deposit. INITIAL MANAGEMENT RESPONSE ACCEPT Procedure in place - TRAN702 Triptracker Billing Excursion Manager/Tech completes deposit transmittal and places it along with the checks in safe. The checks and transmittals are then verified by Account Tech and deposited into the account. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE Observation of collection procedures and discussion with the business account technician revealed procedures for receiving and verifying checks are segregated between the excursion technician and the business account technician. Although checks are safeguarded in a locked safe, they are not endorsed until sent to the business office (endorsement stamp is in the custody of the business office). This recommendation is considered partially implemented. 17

75 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Properly safeguard checks by: a. Depositing checks when received, or b. Purchasing a key/combo safe: i. Require involvement of two individuals to access the safe (e.g. provide key to the excursion manager and backup and combination to the excursion technician and backup). ii. Maintain checks in safe until deposited with the business office (at least once a week), ensuring funds are not left over the weekend. INITIAL MANAGEMENT RESPONSE ACCEPT Key/Combo Safe purchased. See recommendation #14 for deposit of checks for safe keeping. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS Discussion with the business account technician and observation of deposit procedures revealed checks are maintained in a locked safe until deposited. Deposits are made several times per week. The safe is accessible with a single key and is lightweight and not secured to the building so as to prevent theft. Single key access does not provide the additional physical safeguards that would require involvement of two individuals. MANAGEMENT RESPONSE Transportation is currently in the process of purchasing a key/combination safe to be implemented by July 1. A sign-in log has been created and was implemented on June 20, This recommendation is considered partially implemented. 16. Reconcile BusinessPLUS transfer reports to Triptracker monthly. Input transfers to accurately reflect account balances. INITIAL MANAGEMENT RESPONSE ACCEPT Process outlined on TRAN702 process map. Account Tech reconciles BusinessPlus budget transfer reports to Triptracker monthly. 18

76 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS Discussion with the account tech and review of Triptracker accounts revealed transfers are input to accurately reflect account balances. This recommendation is considered fully implemented. 17. Pursue payment collection as documented in the Triptracker Billing Process Map for schools. INITIAL MANAGEMENT RESPONSE ACCEPT Process outlined in TRANSUB702 A Collections. Account Tech forwards invoices at 45 days past due and notifies the Area Superintendent for the school. At 60 days past due the Account Tech forwards the outstanding invoice to Business and Business attempts to get the invoice paid. After Business contacts the school for payment the school either sends us payment or Business debits the school s budget account and sends a copy of the transfer. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE The Transportation Department updated the process map and procedures are in place to collect monies from both schools and programs using transportation services. Process map was updated April 5, This recommendation is considered fully implemented. 18. Create and implement a documented billing and collection process for programs. INITIAL MANAGEMENT RESPONSE ACCEPT Process outlined in TRANSUB702 A Collections. Account Tech forwards invoices at 45 days past due and notifies the Area Superintendent for the school. At 60 days past due the Excursions Manager suspends transportation requests per Transportation Director until balance is paid in full. If payment is not received, Account Tech forwards invoice to School or Agency Rep/ s 19

77 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 Business Rep, school Principal & Area Superintendent of notice of 90 days past due notice of non-payment. (See Attachment Q Process Map - TRANSUB702-A Collections). FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE The Transportation Department updated the process map and procedures are in place to collect monies from both schools and programs using transportation services. Process map was updated April 5, This recommendation is considered fully implemented. 19. Create and implement written procedures for write-offs to include: a. Documenting management approvals, b. Segregation of duties, c. Reducing balances appropriately, and d. Reviewing Triptracker reports reflecting write-offs, by management. INITIAL MANAGEMENT RESPONSE ACCEPT Process in place in TRANSUB702 C- Charge Reversal. Account has gone through the entire billing and collections process write off proposed by the Excursion Manager to Transportation Director. Transportation Director formally approves write-off on account. Excursion Manager adjusts amount owed in Triptracker and closes account with notes placed in Triptracker. Excursion Manager reviews write-off report monthly. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE The Transportation Department has procedures for charge reversals when charges are made in error; however, they are currently adding an additional procedure for when upper management directs the department to reverse the program charge and absorb the cost in Transportation s budget. This recommendation is considered partially implemented. 20

78 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Update and maintain contact information to include school and administrator addresses. INITIAL MANAGEMENT RESPONSE ACCEPT with stipulations Requires access to most current information on school site contacts. Current information provided through Human Resources has a number of administrators and secretaries who are no longer at the site. Most current: Principal School - Secretary Assistant Principal List Revision C. School site generic addresses are often not looked at on a daily basis and often reviewed by a clerical aide and not reviewed by those who booked the trips with excursions. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE Review of contact information and random testing of accounts revealed the Transportation Department updates the account listing periodically. The account tech stated that if payment has not been timely received, she will contact responsible parties to verify correct addresses are used. This recommendation is considered fully implemented. 21. Increase athletic transportation fees: a. Charge high school athletes a $75-80 fee per sport or $95 fee per year. b. Charge middle school athletes a $10 fee per year. INITIAL MANAGEMENT RESPONSE DO NOT ACCEPT Student Services - Athletics - raised the athletic transportation fees for high schools to $35 per student annually and have instituted a $5.00 fee per year for middle school students for athletic transportation. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS Although athletic transportation fees were increased after the 2015 audit, the new fees do not cover athletic transportation expenses. MANAGEMENT RESPONSE An increase for athletic transportation fees was discussed during the Fiscal Year budget process but was not offered as a recommendation to assist with the budget deficit. The District continues to experience an ongoing structural 21

79 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 budget deficit which must be resolved. An increase for athletic transportation fees, along with many other possible offsets yet to be determined, will be considered as a means to assist in addressing this situation. This recommendation is considered not implemented. 22. Analyze expenses and recalculate fees periodically (bi-annually) to encompass all athletic transportation expenses. INITIAL MANAGEMENT RESPONSE ACCEPT Review and send monthly report to Business. Review expenses quarterly for Athletics to determine current expenses. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS Based upon the information provided by the Business Office, this process would allow for periodic recalculation of fees. MANAGEMENT RESPONSE The Transportation Department submits athletic transportation costs monthly to the Business Department for recording on the District s general ledger to provide an accumulative accounting for those costs. The Business Department determines the annual athletic transportation budget based on historical trends and information provided by the Transportation Department. The budget is reviewed on a quarterly basis and can be adjusted, as necessary, as part of the December or June augmentations. This process would allow for a periodic recalculation of fees. This recommendation is considered fully implemented. 22

80 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Require all high schools submit all athletic transportation fees collected to the business office for deposit to the general fund, including prior years fee collected. INITIAL MANAGEMENT RESPONSE ACCEPT Student Services is responsible for the oversight of this recommendation. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS At the end of March 2018, approximately $114,000 in athletic transportation fees remained in high school Student Activity Fund (SAF) accounts. However, from FY15 through March 2018, transfers/expenditures unrelated to Athletic Transportation Fees ($93,000) increased that amount to $207,000. According to the Washoe County School District and Student Activities High School Activities and Athletics Manual, revised January 31, 2017, WCSD requires fees be submitted as described in the November 2015 audit (i.e. fall sports 9/15, winter sports 12/1, and spring sports 3/15). Only one high school submitted the accumulated fees originally identified in the audit. Two (FY 2015 and 2016) to ten (FY 2018) high schools did not submit all fees required. All high schools incorrectly transferred restricted funds or wrote checks to vendors throughout FYs 2015 through 2018 at least once. MANAGEMENT RESPONSE The Office of Business and Financial Services and the Student Athletics and Activities Office have developed a procedure (currently in draft format) for payment of student athletic fees, including school and department responsibilities for communication and reconciliation of fees. Subsequently, on May 10, 2018, a letter was sent to each high school explaining what student athletic fees are (transportation, impact and golf) and the procedure for collecting and submitting payment to the district; citing the applicable governing sections in the Student Activity Funds Procedures Manual; and briefly explaining the transportation fees internal audit and follow up. In addition, the letter noted the current balance of funds in the athletic fees accounts and the amount of any transfers of funds out of that account for other than payment to the District. The total amount due at this time was $228,474. Schools were directed to remit the total amount due by May 18, As of June 19, 2018, approximately $88,500 remains uncollected. The principal of one school with transfers of $28, over three years stated they had permission from Student Athletics, their Area Superintendent and the Superintendent to purchase gym equipment with those funds; the Business Office will not seek reimbursement because of this. Another school owing $38,447 (including transfers of $27,250) has not replied to the initial letter and four other schools have remaining balances due of approximately $21,900; the Business Office is following up with them. 23

81 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 To further communicate information on correct procedures, staff from the Business office attended a training meeting with the Athletic Directors on May 21, 2018 to review them. This recommendation is considered fully implemented. 24. Disallow exemption of fees for any school using district transportation during regular season athletics. INITIAL MANAGEMENT RESPONSE ACCEPT with stipulations Student Services has discontinued this practice and all District schools are required to collect fees for transportation for athletics. Scholarships are offered for students who have hardships in paying this fee. Student Services is responsible for the continued oversight of this recommendation. Upon direction from the Superintendent or her/his designee this may be waived for extraordinary circumstances. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS Review of SAF Athletic Transportation Fees revealed schools are no longer exempted. This recommendation is considered fully implemented. 25. Reconcile total student athletes to fees deposited. INITIAL MANAGEMENT RESPONSE ACCEPT See response in item

82 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, 2018 FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE Internal Audit spoke with the Student Athletics management and staff to discuss their role in reconciling the number of athletes participating in sports by high school to the amount of Athletic Transportation Fees collected and deposited. From review of these specific SAF accounts from FY 2015 through 2018, it does not appear that this task is consistently performed. This recommendation is considered not implemented. 26. Reconcile BusinessPLUS budget transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. INITIAL MANAGEMENT RESPONSE ACCEPT Process in place in TRAN702 Triptracker Billing. Account Tech reconciles BusinessPlus budget transfer reports to Triptracker monthly. (See Attachment P Process Map TRAN702 Triptracker Billing). FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE Discussion with the Transportation Department and review of Triptracker reports and BusinessPLUS budget transfer reports revealed the Transportation account tech reconciles these reports monthly. This recommendation is considered fully implemented. 25

83 INTERNAL AUDIT DEPARTMENT FOLLOW-UP OF THE NOVEMBER 2015 TRANSPORTATION DEPARTMENT WHITE FLEET AND SCHOOL BUS SERVICES AUDIT JUNE 28, Create written procedures for athletic trip billing and reconciliation. INITIAL MANAGEMENT RESPONSE ACCEPT Process in place in TRAN702 B Athletics. Athletic trip billing and reconciliation verified and forwarded to Business by Account Tech monthly. FOLLOW-UP JUNE 28, 2018 INTERNAL AUDIT ANALYSIS AND MANAGEMENT RESPONSE The Transportation Department provided written procedures for athletic trip billing and reconciliation. Discussion with the department revealed this process is in place. This recommendation is considered fully implemented. 26

84 White Fleet and School Bus Services AUDIT OF TRANSPORTATION DEPARTMENT Internal Audit Department November 16, 2015

85 WASHOE COUNTY SCHOOL DISTRICT INTERNAL AUDIT DEPARTMENT November 16, 2015 Board of Trustees Superintendent Traci Davis Washoe County School District Members of the Washoe County School District Audit Committee Rick Martin Director of Transportation This report contains our findings, conclusions, recommendations, and the Transportation Department response to our audit. My staff and I are pleased to discuss any items contained in the report with the board, committee members, and other district officials to facilitate the implementation of the recommendations. Once presented to the Washoe County District Audit Committee, this report becomes a public document. Sincerely, Paula Ward, CPA Paula Ward, CPA Chief Auditor 1

86 The Washoe County School District (WCSD or district) is governed by the Board of Trustees (board) which is comprised of seven elected members. The board is responsible for the general management and control of the district s financial and educational affairs. The superintendent of the district is the chief executive officer and is responsible, along with other administrative staff, for the day-to-day management of the district under the direction of the board. The Internal Audit Department, at the direction of the Washoe County School District Audit Committee (committee), provides independent analysis and specific recommendations to improve district operations. To this end, the Internal Audit Department conducts performance audits of the district s 93 schools, 8 district-sponsored charter schools, district offices and departments and the programs they administer. As a committee to the Board of Trustees, the function of the Audit Committee is to assist the trustees in fulfilling their oversight responsibilities related to the district s financial and other reporting obligations, internal control processes, and compliance with laws, regulations, and ethics. Washoe County School District Audit Committee The Washoe County School District Audit Committee is comprised of eight voting members to include two trustees and six community representatives: Trustee Howard Rosenberg Trustee Nick Smith Representative Terri Avansino Representative Randy Brown Representative Dan Reaser Representative Russ Ruiz Representative Catherine Thompson Representative Beth Wicks 2

87 EXECUTIVE SUMMARY Washoe County School District Transportation Department REPORT RECOMMENDATIONS WITH POTENTIAL COST SAVINGS: One - Time Cost Savings Annual Cost Savings Page Number Require Employees Fuel at District or Government Sites $ 12, Create Mileage Reimbursement Policy.20 per mile 13 Eliminate Take-Home Vehicles 23, Increase High School Athletic Transportation Fees 500, Charge Middle School Athletic Transportation Fees 42, Collect Athletic Transportation Fees at High Schools $ 190,000 81, Total Cost Savings $ 190,000 $ 658,000 Introduction page 7 Transportation Department s Role and Purpose page 9 OBJECTIVE 1: CAN THE DISTRICT REDUCE ITS WHITE FLEET COSTS? Require Employees Fuel at District or Government Fueling Sites...page 11 The Transportation Department s fleet manager downloads and reviews fueling transactions on a daily basis, looking for legitimacy of fuel costs, fuel type, and odometer readings specific to each vehicle. We reviewed fuel transactions for the twelve months ending November 27, 2014 and found approximately 3,500 of 26,500 transactions (13%) were made at non-government fueling sites. If employees fueled at district or other government sites, the district could have saved approximately $12,000. Create Mileage Reimbursement Policy (Personal Convenience) page 13 Although the district provides vehicles for business travel, many employees use their own cars and then request mileage reimbursements. The district does not require employees provide evidence that district cars were unavailable prior to reimbursing mileage. In fiscal year 2014, total mileage reimbursements paid 3

88 to district employees was $368,700. The reimbursement rate established by the federal government for 2014 was $.56 per mile and the average cost per mile to drive district-owned vehicles was $.36 per mile. If employees used district-owned vehicles when available, the district could save $.20 per mile. In addition, if employees were required to use district-owned vehicles, or were not reimbursed for convenience of using their own vehicle, mileage reimbursements would be reduced. Eliminate Take-Home Vehicles..... page 17 Within the district s white fleet certain vehicles used by employees are driven to and from their personal residence daily (take-home vehicles). We assessed travel necessity and reasonableness of take-home vehicles. In addition, we tested mileage requirements established by district administrative regulation. Current practices regarding use of district-owned vehicles are not in compliance with current regulation. If employees discontinued driving district-owned vehicles to and from home the district could save approximately $23,000 in estimated fuel and maintenance costs. OBJECTIVE 2: CAN THE DISTRICT USE ITS WHITE FLEET MORE EFFICIENTLY? Reevaluate Utilization Requirements and Monitor White Fleet Usage...page 22 The Transportation Department provides district-owned vehicles (white fleet) to employees for business travel. Employees whose job responsibilities require them to visit various district sites are the primary users of these vehicles. In fiscal year 2014, only 5% of vehicles used for employee business travel were driven enough to meet the current utilization requirement (1,000 miles per month). If the department reevaluated and established appropriate utilization requirements, it could better monitor its white fleet to determine whether to reassign vehicles to departments/motor pools, or reduce the white fleet accordingly. Require Defensive Driving Classes.... page 24 The School Police Department offers defensive driving classes to all employees who use or will use district vehicles in the performance of their duties. Although the Operations Leadership Team discussed the importance of requiring employees attend defensive driving classes prior to driving district vehicles, the district never drafted or implemented a policy. In addition, not all employees driving district-owned vehicles have taken the defensive driving class. If the district required employees take defensive driving classes, it would ensure preventive measures were in place, which could play a crucial role in protecting the district in the case of an accident. OBJECTIVE 3: CAN THE TRANSPORTATION DEPARTMENT IMPROVE INTERNAL CONTROLS OVER COLLECTION OF TRIP PAYMENTS? Segregate and Safeguard. page 28 The Transportation Department s excursion manager may perform all collection and deposit duties alone. If the Transportation Department segregated collection duties and safeguarded funds until deposited, the risk of misappropriating assets would be greatly reduced. 4

89 Reconcile Reports and Input Transfers.....page 30 The Transportation Department s excursion manager does not use BusinessPLUS, the district s accounting software, transfer reports to reconcile school/program accounts in Triptracker, the department s trip management software. If the excursion manager used BusinessPLUS transfer reports to reconcile Triptracker accounts monthly, the Transportation Department could ensure accurate account information is provided to management and proper follow-up is performed. Pursue Payment Collection...page 30 The Transportation Department does not always pursue payment collection for Triptracker invoices. As of October 3, 2014, Triptracker reports showed 47 of 92 district schools (51%) had outstanding balances over 90 days. If the department pursued payment collection for all school/program accounts it could reduce or eliminate outstanding balances in Triptracker accounts. A regular, systematic handling of payments due increases overall collection effectiveness. Document Approval, Segregate Duties, and Reduce Balances Appropriately....page 33 The Transportation Department s excursion manager not only can perform all duties related to the collection process, she can write off payments in Triptracker without any management oversight (increased opportunity for fraud). The Transportation Department should create and implement write-off procedures to include: documenting management approval prior to writing-off trip costs, segregating duties, reducing the account balance by the write-off amount, and reviewing Triptracker reports reflecting write-offs monthly. If the Transportation Department created and implemented write-off procedures it would ensure accurate, consistent, and timely reports to management. Update and Maintain Triptracker Contact Information.. page 34 Of the 92 school Triptracker accounts: Nineteen accounts (21%) contained inaccurate or no contact information. o Nine of which had outstanding balances over ninety days. Ninety-one (99%) accounts did not include the administrator as a contact. o Forty-six of which had outstanding balances over ninety days. Ninety-two accounts (100%) did not include a generic school address. If the Transportation Department updated and maintained addresses (contact information) including generic school addresses, it would ensure appropriate staff members receive invoices increasing the likelihood of timely payments. OBJECTIVE 4: HAS THE DISTRICT EFFECTIVELY MANAGED ATHLETIC TRANSPORTATION FEES? Increase High School Athletic Transportation Fees......page 37 The district charges all high school athletes an athletic transportation fee of $25 to help offset the costs of bussing student athletes to regular season athletic contests. We analyzed high school athletic transportation fees and expenses and found fees do not cover the costs to transport athletes. In fiscal 5

90 year 2013 and 2014, athletic transportation expenses totaled approximately $1,005,000. Athletic transportation fees collected at the high schools only comprised 27% of total expenses incurred. In addition, schools do not always submit collected fees; therefore, fees deposited to the general fund only covered 17% of expenses incurred by the district. If the district required high schools increase athletic transportation fees, it could reduce its general fund expenses as much as $500,000 annually. Charge Middle School Athletic Transportation Fees.... page 37 The district does not charge any athletic transportation fees to middle school athletes. Consequently, in fiscal year 2013 and 2014, the district incurred approximately $81,000 in middle school athletic transportation costs. If the district charged a $10 fee to middle school athletes it could cover 100% of the middle school athletic transportation costs and reduce its general fund expenditures by approximately $42,000 annually. Collect Athletic Transportation Fees at High Schools..page 38 At fiscal year-end 2014, approximately $190,000 in athletic transportation fees remained in student activity fund accounts at high schools. If schools deposited all athletic transportation fees with the district as required, general fund expenses could be reduced by $190,000 as a one-time cost savings and $81,000 annually thereafter. Reconcile Reports and Input Transfers.. page 40 The district uses budget transfers to pay for athletic trips. The excursion manager does not reconcile BusinessPLUS budget transfer reports to the All District Athletics account in Triptracker. As a consequence, at fiscal year-end 2014 Triptracker reflected an outstanding account balance over 90 days of approximately $1.1 million. If the excursion manager reconciled BusinessPLUS budget transfer reports to Triptracker and input payment for each athletic trip monthly, the Transportation Department could determine outstanding trips and identify errors. APPENDIX A... page 42 APPENDIX B......page 44 APPENDIX C...page 45 APPENDIX D page 46 APPENDIX E...page 92 APPENDIX F page 96 6

91 INTRODUCTION At the direction of the Washoe County School District Board of Trustees and Audit Committee, we conducted an audit of the Transportation Department (Transportation or department). Audit Objectives, Scope, and Methodology Our audit focused on white fleet operations and school bus services by addressing the following objectives: Can the district reduce its white fleet costs? Can the district use its white fleet more efficiently? Can the Transportation Department improve internal controls over collection of trip payments? Has the district effectively managed athletic transportation fees? To accomplish the audit objectives we: Surveyed school districts and other local government agencies to establish industry standards. Interviewed management and staff from the Transportation Department, School Police, Capital Projects, Business Office, and Student Activities and Athletics Office. Performed testing and analysis of fleet management data. Performed testing and analysis of fees collected. Performed reconciliations to determine if payment for bus services is consistently collected. Assessed controls and departmental policies and procedures. We conducted this performance audit in accordance with generally accepted government auditing standards (except for peer review requirement). Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The Internal Audit Department expresses its appreciation to the Director of Transportation and department staff for their cooperation and assistance throughout this audit. Contributors to this report: Cloe Klippenstein, MBA Internal Auditor Marie Terry, MBA Internal Auditor 7

92 OPPORTUNITIES FOR IMPROVEMENT During our audit we identified procedures and practices that can be improved. We found opportunity for the department to create and implement policies and procedures to better protect the district and provide greater transparency to the public. Our audit was not designed or intended to be a detailed study of every relevant system, procedure, or transaction. Accordingly, the opportunities for improvement presented in this report may not be all-inclusive of areas where improvements may be needed. TRANSPORTATION DEPARTMENT RESPONSE AND IMPLEMENTATION PLAN A draft report without responses was provided to the Audit Committee on April 23, The Committee approved to place this audit on the next scheduled Audit Committee meeting (August 13, 2015) to give district and department officials the opportunity to respond to the recommendations up until ten days before the scheduled meeting (July 29, 2015). On August 13, 2015, the presentation of the Transportation Audit was deferred. The Transportation Audit was on the agenda for the October 1, 2015 meeting; however, this meeting was canceled at the request of the Board of Trustees President. The Transportation Department provided responses on November 2, 2015, but declined the opportunity to meet and discuss any recommendations that were not accepted. The responses are included in Appendix D. The timetable for implementation is included in Appendix F. Student Activities and Athletics responded to the two recommendations specific to their department and are included in Appendix E. Auditor notes to department responses have been included within the report. The Internal Audit Department, within six months after the Audit Committee releases the final audit report, shall evaluate the steps the department has taken to implement the recommendations and shall determine whether the steps are achieving the desired results. The Chief Auditor shall report the sixmonth follow-up results to the committee and department officials. The following report contains our findings, conclusions, and recommendations. 8

93 DEPARTMENT S ROLE AND PURPOSE The Washoe County School District Transportation Department owns/manages school buses and other vehicles referred to as the white fleet. The department provides WCSD students safe and efficient transportation to and from school and WCSD-sponsored activities. In addition, the department maintains, repairs, and manages all district-owned vehicles to serve transportation needs essential to district business. The Director of Transportation reports directly to the Chief Operating Officer and is supported by two assistant directors and three managers. The two assistant directors and the fleet operations manager oversee the primary functions of the department (See EXHIBIT I). In fiscal year 2014 these functions were staffed with 394 full time equivalent positions. The department s expenditures for fiscal year 2014 were approximately $26 million (operating expenses and salaries and benefits). Director of Transportation Assistant Director Special Services, Professional Development, & Excursions Fleet Operations Manager Logistics & Systems Manager Project Manager Assistant Director Finance & Operations HR, Allocations, Employee Records, LOAs Special Needs Manager Excursion Manager Fleet Maintenance Coordinators (4) Routing Opening Technician Communications/ Dispatch Supervisor Site Manager South & Incline Site Manager North Site Manager Central Federal & State Policy & Procedure Liason SPED TAs Account Technician Parts Manager Dispatch Technicians Field Supervisors (2) Field Supervisors (4) Transportation Risk Management CDL Drug Testing Program McKinney-Vento Homeless/Foster Program Excursion Technician RTC Bus Pass Program Fleet Technicians I, II, III Upholsterer/ Special Needs Technician Fuel Attendants Behind the Wheel Coordinator Behind the Wheel Instructors Instructor Evaluators Training Coordinators (2) Field Supervisor Opening Technician Drivers Opening Technician Drivers Drivers Systems Electronic Technician EXHIBIT I 9

94 OBJECTIVE 1: CAN THE DISTRICT REDUCE ITS WHITE FLEET COSTS? District White Fleet The district s white fleet vehicles include autos, pick-up trucks, vans, trailers, utility vehicles and other various equipment pieces, tractors, C.O.W. 1 buses, and mini-buses. Anything that is not a school bus is considered part of the white fleet. See EXHIBIT II for breakdown below: White Fleet Vehicle Type 3% C.O.W. Buses/Mini-Buses 32% Autos 7% Tractors 9% Utility Vehicles/Other 24% Pick-Up Trucks 10% Trailers 15% Vans EXHIBIT II Our objective focused on whether the district could reduce its white fleet costs without sacrificing the intended benefits to district operations. To conduct routine district business, employees may use available (or assigned) autos, pick-up trucks, and vans. These vehicles make up 71% of the white fleet, and in fiscal year 2014 made up 78% of white fleet fuel and maintenance costs. 1 The Classroom on Wheels (C.O.W.) program brings free preschool education to three, four, and five year old children who would not otherwise receive these services at ten at-risk sites in the Reno-Sparks Community. The buses have been transformed into completely selfcontained classrooms. 10

95 The district uses some vehicles within the 71% for specific purposes (i.e. school police vehicles, pick-up trucks at school sites, transportation response vehicles). We excluded these vehicles from certain parts of our review because they are not used by the general employee population for business travel. The remaining white fleet vehicles are located at the administration building or in the following departments: Office of School Performance Information Technology Facilities Management Capital Projects Special Education Student Support Services Truancy Intervention Transportation Nutrition Services Curriculum and Instruction Dropout Prevention FUELING CARS The department provides many options to fuel district-owned vehicles: Three WCSD sites located at the Transportation Department yards. Three government fueling sites available to WCSD employees (Incline Village, UNR, County 2 ). Several approved commercial sites (non-government) located in the Reno/Sparks area. Employees using district-owned vehicles are responsible for fueling vehicles. The Transportation Department encourages employees to use either WCSD or government sites rather than commercial sites because of available price discounts. According to the department s written procedures and expected practices: Transportation assigns a fuel card to each district-owned vehicle to be maintained in the vehicle. Employees attend a defensive driving class administered by School Police to become authorized drivers. The fleet manager issues individual driver ID/PIN numbers to authorized drivers. Employees use fuel cards maintained in vehicles with their individual driver ID/PIN numbers when purchasing gas. REQUIRE EMPLOYEES FUEL AT DISTRICT OR GOVERNMENT FUELING SITES The department s fleet manager downloads and reviews fueling transactions on a daily basis, looking for legitimacy of fuel costs, fuel type, and odometer readings specific to each vehicle. The department provided a full year of fueling transactions at both district/government and non-government sites. We 2 The county government fueling site is located on Terminal Way; however, due to constant construction it is often inaccessible to staff. 11

96 found an average discount of $.16 per gallon when fueling at district/government sites. However, the discount may be as great as $.50-$.75 per gallon depending on market fluctuations. We reviewed fuel transactions for the twelve months ending November 27, 2014 and found approximately 3,500 of 26,500 transactions (13%) were made at non-government fueling sites. Although the department strongly recommends all employees fuel at district/government sites when practical, there is no documented policy requiring them to do so. If the Transportation Department required employees to fuel district-owned vehicles at district or other government sites the district could have saved approximately $12,000 (rounded) for the twelve months ending November 27, 2014 (74,500 gallons x $.16 average discount) and future costs could be reduced. RECOMMENDATION: 1. Create and implement a policy: a. Requiring employees fuel district-owned vehicles at district or other government sites. b. Defining specific circumstances when alternative gas stations would be acceptable. RESPONSE: 1. ACCEPT with stipulations District procedures and guidelines with stipulations to use the District and designated government fueling facilities are attached. Certain divisions that at times do not use the District and government fueling stations are typically divisions that due to their type of service must at times use public fueling sites (i.e. School Police, Facilities Management, Administration Building Administrative Leadership). Certain District regions do not have access to District facilities or government sites for fueling. Natchez, Gerlach, and Incline are examples of areas with this lack of access. In addition, when buses or other District personnel using white fleet vehicles travel out of Reno/Sparks proper to other counties or states (California), they do not have access to other government entities for fueling and must use public fueling sites. ATTACHMENTS: Attachment A WCSD Fueling Procedure Attachment B WCSD Fueling Pin Letter Attachment C WCSD Card Lock Fueling Sites TIMELINE FOR IMPLEMENTATION: Use of District facilities and other designated facilities for fueling District vehicles was implemented in guidelines and procedures in April AUDITOR NOTE: The Transportation Department accepted the recommendation as stated. Our only exception to the response is that Incline has access to a government fueling station as stated in our report, page

97 CREATE MILEAGE REIMBURSEMENT POLICY (PERSONAL CONVENIENCE) Although the district provides vehicles for business travel, many employees use their own cars and then request mileage reimbursements. The district does not require employees provide evidence that district cars were unavailable prior to reimbursing mileage. In fiscal year 2014, total mileage reimbursements paid to district employees was $368,700. The reimbursement rate established by the federal government for 2014 was $.56 per mile and the average cost per mile to drive district-owned vehicles was $.36 3 per mile. If employees used districtowned vehicles when available, the district could save $.20 per mile. To reduce mileage costs, employees should be required to use district vehicles for work-related travel whenever possible (see Reevaluate Utilization Requirements and Monitor White Fleet Usage page 17). When vehicles are unavailable, employees should submit evidence of such when requesting mileage reimbursements. In addition, the district should establish a policy stating employees who drive their own vehicles for personal convenience will not be eligible for full reimbursement (NRS ), if at all, when districtowned vehicles are available. If the district required employees use district-owned vehicles, mileage reimbursements would be reduced. RECOMMENDATION: 2. Require employees use district-owned vehicles when available. RESPONSE: 2. DO NOT ACCEPT The only facility that may be able to reasonably require employees to use District-owned vehicles as a primary source of transportation is the Administration Building based on the number of Pool Vehicles there. The other divisions and school sites do not have access to pool cars. The recent deletion of White Fleet vehicles that were sent to auction in October 2014 and April 2015, while reducing District expenditures, left a number of departments without pool car access. Those that do have car pool access are as follows: Administration Building 4 Pool Cars available for all departments except IT and School Police IT has 9 Field Tech cars at the Administration Building Transportation has 3 Standby Driver Cars 1 for each yard Central, North, & South. These are used by Standby Substitute Drivers to go from Yard to Yard to cover bus routes for drivers that called in and are not available to drive their normal route. Items for consideration: 3 Cost per mile calculation includes fuel, maintenance, labor, benefits, and admin costs provided by the Transportation Department and Business Office. The calculation was done based on 94 basic vehicles that are primarily used by employees for daily business travel. School police vehicles, facility vehicles, and equipment type vehicles (tractors, trailers, etc.) were excluded from our cost per mile analysis. 13

98 Transportation researched in depth to ensure all data was collected pertaining to the cost per mile for pool vehicles as opposed to using mileage for use of an employee-owned vehicle for District business (i.e. attending a meeting off site). It was found that fuel, salary, and repair were designated in the cost per mile and accounted for the.42 per mile. This does not include the cost for employee benefits and administrative costs. This additional cost added.17 to the total which raised the cost to.59 per mile as opposed to the.56 in This cost was raised to 57 per mile charged in 2015 for mileage as set by the IRS. Those vehicles designated in the report that could facilitate a savings are designated for executive level administrative leadership. There are other costs that would offset the use of these vehicles being designated in a vehicle pool. Those costs include time for the Administrator to get the pool vehicle at the designated parking area and then drive to their destination. The hour savings of labor time for an executive level administrator would more than make up for the mileage savings cost at.57 a mile. (i.e. 20 miles from the parking area to their destination and back at.57 a mile would be a cost of $22.80.) TIMELINE FOR IMPLEMENTATION: N/A AUDITOR NOTE: The $.42 calculation referred to above, was calculated by the internal auditor during field work which was subsequently changed and communicated to the Transportation Department on March 24, As noted in the Transportation Audit Report on page 13 and footnoted thereon, the internal auditor included employee benefits and administrative costs for a total of $.36 per mile. If the cost per mile is actually $.59 as stated above, then there would be a $.02 cost increase per mile to use district vehicles and the district should remove all white fleet vehicles and ask employees to request reimbursement for using their own vehicles. The last paragraph of the Transportation Department s response will be addressed under Recommendation 5: Eliminate Take-Home Vehicles (page 19). RECOMMENDATION: 3. Require employees provide documentation that no cars were available when requesting reimbursement. RESPONSE: 3. DO NOT ACCEPT As stated in Recommendation #2, based on the number of pool vehicles in the District, there is only one area (the Administration Building) that has the vehicle resources to require staff to do this. The other divisions have no access or very limited access to pool cars. Also as stated previously the cost per mile of white fleet vehicles in other divisions is.59 per mile as opposed to the.57 per mile for mileage reimbursement. Even if a reasonable documentation enforcement vehicle is presented as Internal Audit has endeavored to do (See Attachment D Vehicle Availability Form), it would only be viable at the Administration Building in a limited capacity. It would then need to be determined as to what department at the Administration Building would provide oversight of the Pool Vehicles. We do not believe there is a cost effective, reasonable enforcement process for this proposed documentation process. 14

99 ATTACHMENTS: Attachment D Vehicle Availability Form TIMELINE FOR IMPLEMENTATION: N/A AUDITOR NOTE: Currently, school police provides oversight of administrative pool vehicles. We discussed using the form with the person in charge of the pool who acknowledged the process was feasible. The internal auditor recommended any documentation supporting a reimbursement be attached for Business Office approval. See auditor note to recommendation #2 regarding white fleet usage if in fact the costs are above reimbursement costs. RECOMMENDATION: 4. Create a policy establishing employees using personal vehicles for will not be eligible for reimbursement or will only receive half the reimbursement per NRS RESPONSE: 4. DO NOT ACCEPT The White Fleet Committee is continuing to work on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: Transportation has been investigating the creation of a stipend program based on current vehicle usage that would be similar to the cell phone stipend program. Transportation has looked at the stipend programs and mileage programs from other public entities in Washoe County and Clark County. All of the identified programs provide full mileage compensation, or a stipend, for use of their private vehicles for work purposes. This information and data has been provided to the Chief Operations Officer and the Superintendent by the White Fleet Committee (representatives from Transportation, Business, School Police, Facilities Management, and Education). Clark County s Travel Regulations, Vehicle Use Regulations, and Mileage Reimbursement Schedule are attached. ATTACHMENTS: Attachment E CCSD Travel Reg. Attachment F CCSD Vehicle Use Reg. Attachment G CCSD Mileage Reimbursement Schedule WHITE FLEET INFORMATION ATTACHMENTS: Attachment H Other Public Entities Vehicle Stipend and Mileage Reimbursement Attachment I Other Public Entities Vehicle Clark County School District Stipend and Mileage Reimbursement Attachment J Other Public Entities Vehicle Mileage Compensation Comps Attachment K Other Public Entities Vehicle Pros Cons for In-House, Mileage, Stipend Options Attachment E CCSD Travel Reg. Attachment F CCSD Vehicle Use Reg. 15

100 Attachment G CCSD Mileage Reimbursement Schedule TIMELINE FOR IMPLEMENTATION: N/A AUDITOR NOTE: The recommendation is to create a policy that establishes employees using personal vehicles (out of personal convenience) will not be eligible for reimbursement or will only receive half the reimbursement per NRS As stated in Attachment E CCSD Travel Reg. provided by the Transportation Department reimbursement to employees for travel expenses is in accordance with Nevada statute. This attachment supports the audit recommendation. The additional attachments provided by the Transportation Department reflect an analysis of stipends vs. reimbursements when there are no district vehicles available for those employees who regularly use their vehicles to travel to multiple locations. This does not answer the recommendation. TAKE-HOME VEHICLES Within the district s white fleet certain vehicles used by employees are driven to and from their personal residence daily (take-home vehicles).table I below identifies the positions that currently use districtowned vehicles as take-home vehicles: DISTRICT POSITIONS NUMBER OF VEHICLES School Police Officers 24 Victims Advocate 1 District Emergency Manager 1 TOTAL POLICE AND ON-CALL TAKE-HOME VEHICLES 26 Deputy Superintendent 1 Chief of Staff 1 Chief Academic Officer 1 Senior Director Student Accounting 1 Executive Director Student Support Services 1 Chief School Accountability Officer 1 Area Superintendents 7 School Principal (Incline) 1 Chief Capital Projects Officer 1 TOTAL TAKE-HOME VEHICLES 15 4 TABLE I School police officers, the victims advocate, and the district emergency manager provide services critical to public safety and could be called back to work after regular work hours. Therefore, these 26 take-home vehicles were excluded from further analysis. 4 The superintendent s contract provides the superintendent a vehicle; therefore, this vehicle was excluded from our analysis. 16

101 ELIMINATE TAKE-HOME VEHICLES We assessed the remaining 15 take-home vehicles to determine necessity, practicality, and costefficiency. The results were organized into four different categories to allow for circumstantial differences between position type and job responsibilities considered during the testing process. 1. Area Superintendents 2. Administrative Positions 3. Capital Projects 4. School Principal Washoe County School District Administrative Regulation Use of District Owned Vehicles states: 1. Assignment of District-Owned Vehicles a. District-owned vehicles may be assigned to individuals or departments when at least 1,000 miles of travel per month are required for district business. b. All district-owned vehicles are available to best serve employee transportation needs of the district, and no vehicle is considered permanently assigned to any individual or department. c. District-owned vehicles are to be used for official business only. Employees shall not use the vehicle for personal use; e.g., shopping after work hours, transporting family members, or hauling personal items. Should a person have to take a district vehicle to his/her residence during the work day, the person must first notify his/her immediate supervisor. In addition to testing mileage requirements, we assessed travel necessity and reasonableness (parts b. and c. of the administrative regulation). Current practices regarding use of district-owned vehicles are not in compliance with this regulation. AREA SUPERINTENDENTS Area superintendents may schedule meetings on their way to their primary workplace or on their way home; therefore, we analyzed business miles and total miles (including personal commute) to determine whether mileage requirements were met. In order to estimate the average monthly miles used to conduct district business, we deducted the personal commuting miles from the total miles driven by each area superintendent. We found that no vehicles reached the 1,000 mile requirement established by the district (1.a above) for either business miles or total miles. In addition, personal commute miles were estimated to be 51% of the total miles driven by area superintendents in fiscal year If area superintendents discontinued driving district-owned vehicles to and from home, the district would save approximately $5,000 annually in estimated fuel and maintenance costs. See Appendix A for mileage and cost breakdown. Due to the frequency of travel throughout the day, area superintendent vehicles may remain assigned to the respective employee, but should be housed at a district site. 17 Personal commute miles were estimated to be 51% of the total miles driven by area superintendents in fiscal year 2014.

102 ADMINISTRATIVE POSITIONS Other administrators may also schedule meetings on their way to their primary workplace or on their way home; therefore, we analyzed business miles and total miles (including personal commute) to determine whether mileage requirements were met. We found that no vehicles reached the 1,000 mile requirement established by the district (1.a above) for either business miles or total miles. In addition, personal Personal commute miles commute miles were estimated to be 66% of the total miles were estimated to be 66% of driven by these administrators in fiscal year the total miles driven by If other administrative positions discontinued driving districtowned vehicles to and from home, the district would save an year these administrators in fiscal additional $10,000 annually in estimated fuel and maintenance costs. See Appendix A for mileage and cost breakdown. CAPITAL PROJECTS The current Chief Capital Projects Officer came to the district in April 2014; therefore, we estimated personal commute mileage based upon a 250-day work year. If the Chief Capital Projects Officer discontinued driving a district-owned vehicle to and from his personal residence, the estimated fuel and maintenance cost savings would be approximately $4,000 annually. SCHOOL PRINCIPAL The Incline Schools (K-12) principal uses a district-owned vehicle to travel to and from her personal residence in Reno. Although an area superintendent granted this benefit to compensate for the long commute, the district does not compensate based upon geographic location. If the principal discontinued driving the district-owned vehicle to and from home, the district would save an additional $4,000 annually in estimated fuel and maintenance costs. In addition, the Capital Projects Department purchased this vehicle with bond funds. Due to the restricted purpose of the 2002 rollover bond, which states that the school bonds will finance the acquisition, construction, improvement and equipping of school facilities, the Transportation Department should return the vehicle to capital projects. If the department reassigns the vehicle it would ensure bond funds are used appropriately for capital projects needs. CONCLUSION The Transportation Department should eliminate take-home vehicles. Vehicles should be assigned to district sites, and made available to all employees to better serve the district s needs. We surveyed six other school districts and found that five of six, including Clark County School District, do not allow takehome vehicles for area superintendents or other administrative positions. 18

103 By eliminating take-home vehicles, the district would save approximately $23,000 annually in fuel and maintenance expenses. RECOMMENDATION: 5. Eliminate take-home vehicles. RESPONSE: 5. DO NOT ACCEPT The White Fleet Committee is continuing to work on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: Only divisions designated for emergency response are currently allowed to take a company vehicle home. This would include designated personnel out of School Police, the Emergency Service Manager, and the Child Advocates office. Certain positions on the Executive Leadership Administrative Team need to be considered by the Superintendent or Superintendent Designee to have the authorization to take their assigned vehicle home for operational efficiency. It is inefficient to require Executive Leadership Administrative Team members to first report to their duty station before traveling to school sites or to meetings. Losses in productivity would vastly outweigh any financial savings attributed to this recommendation. (See attached White Fleet Information: Attachment H Other Public Entities Vehicle Stipend and Mileage Reimbursement, Attachment I Other Public Entities Vehicle Clark County School District Stipend and Mileage Reimbursement, Attachment J Other Public Entities Vehicle Mileage Compensation Comps, Attachment K Other Public Entities Vehicle Pros Cons for In-House, Mileage, Stipend Options) TIMELINE FOR IMPLEMENTATION: N/A AUDITOR NOTE: Board policy states, District-owned vehicles will be housed at District locations designated by the Transportation Department, with the following exceptions: school police vehicles and designated transportation vehicles. During periods of inclement weather or after hour emergencies, other exceptions will be made only on the basis of demonstrated cost-effectiveness and upon the approval of the Superintendent. Area superintendents, who travel to assigned schools, do not receive assignments based upon where they live. See Appendix C. As stated in the report, personal commute miles accounted for 51% to 66% of total miles driven by area superintendents and executive leadership. The state of Nevada fleet division was surveyed and said take-home vehicles are very limited at the state and are primarily used by law enforcement; allowing take-home vehicles does not portray a good use of public funds. 19

104 The audit surveyed other school districts, including Clark County, who stated take-home vehicles were not allowed for area superintendents or other administrative positions. Other school districts surveyed only allow take-home vehicles for on-call positions and law enforcement, not administrators. RECOMMENDATION: 6. Assign vehicles to better serve district needs (i.e. motor pool, bond vehicle). RESPONSE: 6. ACCEPT The White Fleet Committee has been collecting data and developing processes during the previous 12 months to establish criteria for vehicle use by departments, departmental divisions, position criteria, etc. Based on the collected data, Transportation did a reassignment of six vehicles during the school year for the school year. Item for consideration: Purchase of White Fleet vehicles by certain funding sources (i.e. Grant Funds, Bond Funds, Enterprise Funds, etc.) require those vehicles stay with those divisions or school sites that the funding designates. The vehicle identified as being purchased with Bond Funds will be returned to the Capital Projects Department. TIMELINE FOR IMPLEMENTATION: This has been implemented beginning April 2015 and will be monitored annually by the White Fleet Committee to ensure vehicle use is equitable. Procedures have been developed that determine vehicle placement, replacement, or discontinuing vehicle use completely based on the annual Utilization Analysis Report. ATTACHMENT L Utilization Analysis (AUDITOR NOTE: INTERNAL AUDIT UTILIZATION ANALYSIS PERFORMED AND PROVIDED TO THE TRANSPORTATION DEPARTMENT) AUDITOR NOTE: Although the Transportation Department stated acceptance of this recommendation, the department did not answer the recommendation as stated, which was to eliminate take-home vehicles and to use these vehicles for reassignment to pool cars. RECOMMENDATION: 7. Create and implement policy and procedures specific to when take-home vehicle usage is appropriate (i.e. school police and on-call positions). RESPONSE: 7. ACCEPT with stipulations 20

105 The White Fleet Committee is currently working on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Policy and procedures will be created and implemented regarding when take-home vehicle usage is appropriate (i.e. School Police and on-call positions) pending the final outcome of recommendation 5. Items for consideration: School Police vehicles are allowed to be taken home as per their negotiated agreement with the Washoe County School District. The Emergency Manager vehicle and the Child Advocate vehicle are designated as Emergency Response vehicles and are designated through the District as vehicles that response time is critical and are allowed to be taken home. As stated in Recommendation 5, In addition, certain positions on the Executive Leadership Administrative Team need to be considered by the Superintendent or Superintendent Designee to have the authorization to take their assigned vehicle home for operational efficiency. It is inefficient to require Executive Leadership Administrative Team members to first report to their duty station before traveling to school sites or to meetings. Losses in productivity would vastly outweigh any financial savings attributed to this recommendation. TIMELINE FOR IMPLEMENTATION: Implementation can begin as early as January 1, 2016, but only when the outcome of item 5 is agreed upon by Administration. AUDITOR NOTE: See Auditor Note on page

106 OBJECTIVE 2: CAN THE DISTRICT USE ITS WHITE FLEET MORE EFFICIENTLY? REEVALUATE UTILIZATION REQUIREMENTS AND MONITOR WHITE FLEET USAGE The Transportation Department provides district-owned vehicles 5 (white fleet) to employees for business travel. Employees whose job responsibilities require them to visit various district sites are the primary users of these vehicles. Vehicles may be assigned to departments, individuals, or used as pool cars. The district underutilizes white fleet vehicles. WCSD s administrative regulation, Use of District-Owned Vehicles 6, states District-owned vehicles may be assigned to individuals or departments when at least 1,000 miles of travel per month are required for district business. Although the department tracks mileage per vehicle, they do not use the information to make decisions regarding the most efficient and effective use of the white fleet. In fiscal year 2014 only 5% of vehicles used for employee business travel met the minimum requirement. The Transportation Department should reevaluate whether the administrative regulation regarding district-owned vehicles is appropriate and establish policies and procedures to ensure the white fleet is used more efficiently. If the department established appropriate utilization requirements, it could better monitor its white fleet to determine whether to reassign vehicles to departments/motor pools, or reduce the white fleet accordingly. RECOMMENDATION: 8. Reevaluate and update policies and procedures to ensure utilization requirements are appropriate. RESPONSE: 8. ACCEPT with stipulations The White Fleet Committee is currently working on this item in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: The Administrative Regulation is specific for overall operational efficiency for the District, but certain division requirements are not so easily defined in the confines of this requirement and may need some broader language as determined by designated assignment or overall District need. 5 School police vehicles, facility vehicles, and equipment type vehicles (tractors, trailers, etc.) were excluded from the list of vehicles analyzed. 6 Administrative Regulation

107 Washoe County School District Administrative Regulation Use of District Owned Vehicles Assignment of District-Owned Vehicles a. District-owned vehicles may be assigned to individuals or departments when at least 1,000 miles of travel per month are required for District business. The majority of School Police vehicles, the Emergency Manager Vehicle, and the Child Advocate vehicle do not reach this requirement monthly. This would include executive level administrators who are required to be off site on a regular basis for meetings, school site issues, and other community events, but will not exceed the 1,000 miles per month threshold. b. All District-owned vehicles are available to best serve employee transportation needs of the District, and no vehicle is considered permanently assigned to any individual or department. School Police and Facilities Management and Capital Projects are examples of divisions that require specific types of vehicles that have to be specifically assigned to the division or persons/positions within the division. c. District-owned vehicles are to be used for official business only. Employees shall not use the vehicle for personal use (e.g. shopping after work hours, transporting family members, or hauling personal items). Should a person have to take a District vehicle to his/her residence during the work day, the person must first notify his/her immediate supervisor. TIMELINE FOR IMPLEMENTATION: Transportation currently evaluates vehicle utilization monthly and annually. Adjustments are made accordingly based on divisional requirements. Policies and processes are currently in review for refinement and updating through the White Fleet committee. RECOMMENDATIONS: 9. Monitor white fleet usage and reassign vehicles to departments/motor pools where utilization requirements will be met, or 10. Reduce the white fleet accordingly. RESPONSE: 9/10. ACCEPT with stipulations As indicated in recommendation #6, Transportation did a reassignment of some vehicles during the school year for the school year. Vehicles were reassigned to the following departments to better facilitate use and efficiency for the vehicle and the department for the school year. The departments are: Family School Partnership, Washoe Inspire Academy, Office of School Performance, Special Education Student Support Services - student transport, Facilities Management Housekeeping Operations Field Supervisor Incline/South Reno, and Curriculum & Instruction. In addition, a vehicle was replaced for Drop-Out Prevention/Truancy for a vehicle that lost an engine. 23

108 In addition, the white fleet was reduced by sending 27 vehicles to auction in October 2014 and sending 9 vehicles to auction in April The white fleet committee will continue to assess the white fleet and make reductions in vehicles as needed. TIMELINE FOR IMPLEMENTATION: Currently evaluate daily and monthly. Adjustments are being made accordingly. Policies and processes are currently in review for refinement and updating through the White Fleet committee. AUDITOR NOTE: Follow-up will be performed six months from Audit Committee acceptance of report and responses. REQUIRE DEFENSIVE DRIVING CLASSES The School Police Department offers defensive driving classes to all employees who use or will use district vehicles in the performance of their duties. Although the Operations Leadership Team discussed the importance of requiring employees attend defensive driving classes prior to driving district vehicles, the district never drafted or implemented a policy. In addition, not all employees driving district-owned vehicles have taken the defensive driving class. The department should require any employees currently driving district-owned vehicles to take the class who have not already done so. In addition, prior to issuing driver IDs/PINs the Transportation Department should require and ensure employees complete the defensive driving class by obtaining proof of course completion. The State of Nevada s Fleet Services Director stated all employees driving state vehicles are required to complete defensive driving courses per risk management policy and the State Administrative Manual. If the district required employees take defensive driving classes, it would ensure preventive measures were in place, which could play a crucial role in protecting the district in the case of an accident. RECOMMENDATION: 11. Create a policy requiring all employees who might use a district-owned vehicle take the district s defensive driving class. RESPONSE: 11. ACCEPT Established in Board Policy 7505 Use of District-Owned Vehicles. Referenced directly in Administrative Procedure 7550 Transporting Students in a Private or White Fleet Vehicle Draft. ATTACHMENTS: Attachment M Policy 7505 Attachment N Administrative Regulation

109 TIMELINE FOR IMPLEMENTATION: Implemented May 2012 and revised in September AUDITOR NOTE: Although the Transportation Department stated acceptance of the recommendation, the policy referenced in the response ONLY addresses requirement of the class if students are being transported. It was recommended all employees who drive district vehicles attend the class, not just those who transport students. RECOMMENDATION: 12. Require employees who currently drive district-owned vehicles, but have not completed the defensive driving class, take the course. RESPONSE: 12. ACCEPT with stipulations As referenced in Recommendation #11 Policy and Administrative Regulation in place. Documentation of course completion required for Transportation approval to drive a student in a District vehicle as referenced in Administrative Form 7576 Annual Request to Transport Students. Transportation only approves ability to drive students in District Vehicles if the driver provides a copy of the WCSD issued Defensive Driving Certificate. ATTACHMENTS: Attachment O Administrative Form 7576 Annual Request to Transport Students. Item for consideration: To require any current employee driving a District vehicle to take the WCSD Defensive Driving Course who has not completed the course will require assistance from all departments assigned district vehicles to coordinate with School Police to sign their employee up for the WCSD Defensive Driving Course and not allow their employee to drive a District vehicle until the employee has their certificate. This purview would fall under School Police as they provide the training classes and certifications for the WCSD Defensive Driving course. TIMELINE FOR IMPLEMENTATION: Implemented July 1, 2015 for Transporting Students in District Vehicles. AUDITOR NOTE: The response does not address the recommendation. The policy referenced in the response ONLY addresses requirement of the defensive driving class if students are being transported. 25

110 RECOMMENDATION: 13. Obtain proof of course completion prior to issuance of a driver ID/PIN. RESPONSE: 13. ACCEPT A procedure is in place that when a request is placed by a department for the issuance of a driver ID/PIN number for driving and fueling a District vehicle that the following occurs: Transportation contacts School Police to verify that the employee has taken and completed the WCSD Defensive Driving Course. If employee has taken and completed the course the Transportation Fleet Operations Manager approves the issuance of the driver ID/PIN number by the vendor to the employee. If employee has not taken or completed the course the Transportation Fleet Operations Manager denies the issuance of the ID/PIN number and informs the department of the denial of the request. TIMELINE FOR IMPLEMENTATION: April

111 SCHOOL BUS SERVICES The Transportation Department provides student transportation services at the district s 93 schools, which includes transporting approximately 20,100 students to and from school daily. The department also provides other types of services that enhance the students educational experience [i.e. field trips, extracurricular and co-curricular activities (trips)]. These services are available to schools, and districtsponsored and outside programs 7 (programs), which include activities such as athletics, band, ROTC, and the After School Program. In 2012, the Transportation Department implemented Versatrans Triptracker (Triptracker), a trip management software, to manage the tracking process of requesting, approving, scheduling, and billing trips. Triptracker fully automates the trip request and fulfillment process. The excursion manager, who manages Triptracker, assigns each school and program requesting bus services (requester) a Triptracker account. Requesters view their current trips and statuses (e.g., scheduled, completed, billed), while excursion staff see all activity. The Transportation Department bills trips based on: Estimate of labor and fuel ($27 an hour and $1.75 a mile, respectively), Calculation of cost per unit (mile), or Bus lease agreements with programs outside of WCSD. In 2014, the Transportation Department billed approximately $1.2 million for field trips, extra-curricular, and co-curricular trips. 7 Programs outside of the district such as Boys and Girls Club, Discovery Museum, or Reno Recreation. 27

112 OBJECTIVE 3: CAN THE DEPARTMENT IMPROVE INTERNAL CONTROLS OVER COLLECTION OF TRIP PAYMENTS? TRIPS Schools and programs pay for trips by check or budget/cost transfer. PAYMENT BY CHECK When a school or program uses district bus services, the excursion manager bills them accordingly. In most instances, a school remits trip payments to the department using student activity funds 8 collected from participating students; while a program s source of funding may vary. The Transportation Department s excursion manager may perform all collection and deposit duties alone. If the excursion manager receives a check through the mail she opens it and enters the payment in Triptracker, leaving the check on her desk. She prepares a deposit transmittal when she receives at least eight checks; at times leaving checks unsecured through the weekend. She then forwards the checks to the business office where they are endorsed and deposited into the general fund. Individual checks may range anywhere from $3 to $11,000. SEGREGATE AND SAFEGUARD The department could enhance internal controls over the collection of checks received at Transportation by segregating collection processes and safeguarding checks when received. According to The Committee of Sponsoring Organization s (COSO) Internal Control Integrated Framework, internal controls are broadly defined as processes (control activities) designed to provide reasonable assurance regarding the achievement of objectives and can help an entity prevent loss of resources. Control activities occur throughout an organization, at all levels and in all functions and include a range of activities including: approvals, authorizations, verifications, reconciliations, security of assets, and segregation of duties. The department should require the individual who receives or opens the mail to be separate from the individual that inputs payment information and secures endorsed checks in a safe until deposited with the district. If the Transportation Department segregated collection duties and safeguarded funds until deposited, the risk of misappropriating assets would be greatly reduced. 8 Student activity funds are all monies received by individual schools of the Washoe County School District as collections or gifts for the operations of school activities, both special and general. Funds raised for a specific purpose and/or specific group are known as Restricted Funds. 28

113 RECOMMENDATION: 14. Separate collection duties by: a. Designating an individual (excursion technician) to receive and restrictively endorse checks when received. b. Designating a second individual (excursion manager) to verify the check amount and safeguard funds until sent to the business office for deposit. RESPONSE: 14. ACCEPT Procedure in place - TRAN702 Triptracker Billing Excursion Manager/Tech completes deposit transmittal and places it along with the checks in safe. The checks and transmittals are then verified by Account Tech and deposited into the account. ATTACHMENTS: Attachment P - Process Map TRAN702 Triptracker Billing TIMELINE FOR IMPLEMENTATION: Implemented May 2015 RECOMMENDATION: 15. Properly safeguard checks by: a. Depositing checks when received, or b. Purchasing a key/combo safe: i. Require involvement of two individuals to access the safe (e.g. provide key to the excursion manager and backup and combination to the excursion technician and backup). ii. Maintain checks in safe until deposited with the business office (at least once a week), ensuring funds are not left over the weekend. RESPONSE: 15. ACCEPT Key/Combo Safe purchased. See recommendation #14 for deposit of checks for safe keeping. TIMELINE FOR IMPLEMENTATION: Implemented May

114 PAYMENT BY BUDGET/COST TRANSFER A school or program may also use a general fund operating budget (budget transfer) or grant (cost transfer) to pay for trips. When a school or program makes a payment using general funds, the school or program submits a budget/cost transfer request with supporting documentation to the appropriate department and the transfer is made in BusinessPLUS. RECONCILE REPORTS AND INPUT TRANSFERS The excursion manager does not use BusinessPLUS transfer reports to reconcile school/program accounts in Triptracker, which may result in overstated account balances. As stated previously, key control activities include reconciliations to ensure an organization addresses and mitigates risk appropriately. If the excursion manager used BusinessPLUS transfer reports, that include trip IDs, to reconcile Triptracker accounts monthly, she could ensure accurate account information is provided to management and proper follow-up is performed. RECOMMENDATION: 16. Reconcile BusinessPLUS transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. RESPONSE: 16. ACCEPT Process outlined on TRAN702 process map. Account Tech reconciles BusinessPlus budget transfer reports to Triptracker monthly. (See Attachment P - Process Map TRAN702 Triptracker Billing.) TIMELINE FOR IMPLEMENTATION: Implemented May 2015 PURSUE PAYMENT COLLECTION Triptracker balances in various school and program accounts revealed the Transportation Department did not always pursue payment collection for outstanding invoices. As of October 3, 2014, Triptracker reports showed 47 of 92 9 district schools (51%) had outstanding balances over 90 days. In most instances, Triptracker school and program account balances were outstanding as a result of: Collected funds remaining at the school. Writing off trip costs without adjusting the outstanding balances. Budget transfers made without the excursion manager s knowledge. Forty - seven of ninetytwo district schools (51%) had outstanding balances over 90 days. 9 Excludes Gerlach/Johnson K

115 Schools not receiving trip notification s (invoices) due to incomplete contact information. The Transportation Department bills a school or program after trip completion, either through an automated from Triptracker or through a printed invoice sent by the excursion manager. Although the Transportation Department documented the billing and collection process for schools (See EXHIBIT III), they have not documented the process for programs. Documented Collection Process Schools School Was payment received from school, either through check or budget transfer? NO Triptracker Forwards to school when invoice is 30 days past due School After sent, was payment received? NO END Business Office Debits school budget/ transfers payment Account Tech Forwards to school when invoice is 45 days past due and notifies Business Office of nonpayment/invoice information Simplified excerpt of collection process - Transportation Department s Triptracker Billing Process Map EXHIBIT III If the department pursued payment collection for all accounts (school and program) it could reduce or eliminate outstanding balances in Triptracker accounts. A regular, systematic handling of payments due increases overall collection effectiveness. Creating and implementing documented processes helps create a framework for internal controls which management can rely upon to ensure the department is operating consistently. RECOMMENDATION: 17. Pursue payment collection as documented in the Triptracker Billing Process Map for schools. RESPONSE: 17. ACCEPT Process outlined in TRANSUB702 A Collections. Account Tech forwards invoices at 45 days past due and notifies the Area Superintendent for the school. At 60 days past due the Account Tech forwards the outstanding invoice to Business and Business attempts to get the invoice paid. After Business contacts the 31

116 school for payment the school either sends us payment or Business debits the school s budget account and sends a copy of the transfer. ATTACHMENTS: Attachment Q Process Map TRANSUB702-A Collections TIMELINE FOR IMPLEMENTATION: Implemented May 19, RECOMMENDATION: 18. Create and implement a documented billing and collection process for programs. RESPONSE: 18. ACCEPT Process outlined in TRANSUB702 A Collections. Account Tech forwards invoices at 45 days past due and notifies the Area Superintendent for the school. At 60 days past due the Excursions Manager suspends transportation requests per Transportation Director until balance is paid in full. If payment is not received, Account Tech forwards invoice to School or Agency Rep/ s Business Rep, school Principal & Area Superintendent of notice of 90 days past due notice of non-payment. (See Attachment Q Process Map - TRANSUB702-A Collections). TIMELINE FOR IMPLEMENTATION: Implemented July 1, 2015 WRITE-OFFS The Transportation Department has no written procedures reflecting current write-off processes. When the department deems balances due uncollectable, Transportation management gives verbal approval to write off the trip cost. The excursion manager changes the trip status to Closed ; however she does not reduce the outstanding balance by the write-off amount. As a result, account balances are overstated. A fundamental element of internal control is the segregation of certain key duties. No employee should be in a position to handle assets, authorize related transactions affecting those assets, and record or report on the related transactions. The excursion manager not only can perform all duties related to the collection process as stated above (page 20), she can write off payments without any management oversight (increased opportunity for fraud). According to Michelle L. Long, CPA, MBA, international trainer, speaker, and author, all write-offs should be approved in writing by management. In addition, the Transportation Department does not produce a report reflecting approved write-offs for management review. Reviewing write-off reports provides management the opportunity to reconcile write-offs input in the system to approvals granted. 32

117 DOCUMENT APPROVAL, SEGREGATE DUTIES, AND REDUCE BALANCES APPROPRIATELY Transportation should create and implement write-off procedures to include: Documenting management approval prior to writing-off trip costs Segregating duties Reducing the account balance by the write-off amount Reviewing Triptracker reports reflecting write-offs monthly If the department created and implemented write-off procedures it would ensure accurate, consistent, and timely reports to management. RECOMMENDATION: 19. Create and implement written procedures for write-offs to include: a. Documenting management approvals, b. Segregation of duties, c. Reducing balances appropriately, and d. Reviewing Triptracker reports reflecting write-offs, by management. RESPONSE: 19. ACCEPT Process in place in TRANSUB702 C- Charge Reversal. Account has gone through the entire billing and collections process write off proposed by the Excursion Manager to Transportation Director. Transportation Director formally approves write-off on account. Excursion Manager adjusts amount owed in Triptracker and closes account with notes placed in Triptracker. Excursion Manager reviews write-off report monthly. ATTACHMENTS: Attachment R Process Map - TRANSUB702-C TripTracker Charge Reversal TIMELINE FOR IMPLEMENTATION: Implemented - September 1, 2015 AUDITOR NOTE: Although the Transportation Department stated acceptance of this recommendation, the internal auditor recommended management review write-off reports. 33

118 UPDATE AND MAINTAIN TRIPTRACKER CONTACT INFORMATION One of Triptracker s features includes automatically notifying trip requesters of trip statuses (i.e. requested, scheduled, completed, and invoiced). In addition, it allows Transportation to add multiple contacts to each account in order to send notifications of trip statuses. Of the 92 school Triptracker accounts: Nineteen accounts (21%) contained inaccurate or no contact information. o Nine of which had outstanding balances over ninety days. Ninety-one (99%) accounts did not include the administrator as a contact. o Forty-six of which had outstanding balances over ninety days. Ninety-two accounts (100%) did not include a generic school address. If the Transportation Department updated and maintained addresses (contact information) including generic school addresses, it would ensure appropriate staff members receive invoices increasing the likelihood of timely payments. Maintaining updated contact information aides in effective follow-up and communicates information to the appropriate and responsible individuals. RECOMMENDATION: 20. Update and maintain contact information to include school and administrator addresses. RESPONSE: 20. ACCEPT with stipulations Requires access to most current information on school site contacts. Current information provided through Human Resources has a number of administrators and secretaries who are no longer at the site. Most current: Principal School - Secretary Assistant Principal List Revision C. School site generic addresses are often not looked at on a daily basis and often reviewed by a clerical aide and not reviewed by those who booked the trips with excursions. TIMELINE FOR IMPLEMENTATION: Contingent on ability to have access to most current monthly school site administrator staff information. AUDITOR NOTE: The internal auditor recommended school addresses be added as back-up in the event school administration has changed without Transportation s knowledge. 34

119 OBJECTIVE 4: HAS THE DISTRICT EFFECTIVELY MANAGED ATHLETIC TRANSPORTATION FEES? ATHLETIC TRIPS According to the WCSD Field & Activity Trip Handbook, athletics are defined as extra-curricular activities held during or after the completion of the academic school day which are not connected to a curricular program. HIGH SCHOOLS Currently, the district charges all high school athletes an athletic transportation fee (fee) of $25 to help offset the costs of bussing student athletes to regular season athletic contests. Schools collect the fees through student activity funds for deposit to the general fund for each athletic season: fall, winter, and spring. This fee is charged one time per year to each athlete regardless of the number of sports the athlete plays. For example a student playing football will be charged $25, while another student playing football, basketball, and baseball will also be charged $25; therefore some students pay more respective to athletic participation. ATHLETIC TRANSPORTATION FEES We analyzed high school athletic transportation fees and expenses and found fees do not cover the costs to transport athletes. In fiscal years 2013 and 2014, the district incurred approximately $521,000 and $484,000 in high school athletic transportation expenses respectively, totaling approximately $1,005,000. Athletic transportation fees collected at the high schools only comprised 27% of total expenses incurred. In addition, schools do not always submit collected fees; therefore, fees deposited to the general fund only covered 17% of expenses incurred by the district. See EXHIBIT IV below. Fiscal Years 2013 and 2014 High School Transportation Expenses 73% 17% 10% Total Fees Collected 27% Fees Submitted Fees Withheld Costs not Covered 35 EXHIBIT IV

120 INCREASING COSTS The Transportation Department calculated a $4.40 cost per mile to provide athletic transportation based on the following factors: Fuel prices (diesel) Bus driver salaries Basic bus maintenance Although, the Transportation Department incurs increasing costs (inflation) for transporting athletes, the district has not adjusted athletic transportation fees for over ten years. See Graphs 1-4 below. The district has not increased athletic transportation fees for over ten years INCREASING COSTS OVER THE PAST 10+ YEARS $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- 154% $ % $ $ $ $ $ Graph 1 - Diesel Price (per gallon) Graph 2 - Bus Driver Salary (daily) $ $ $ $ $50.00 $- 281% $ % $30.00 $20.00 $10.00 $- Graph 3 - Basic Bus Maintenance Graph 4 - CPI Buying Power Auditor Note: Graph 3: For comparison purposes, the basic bus maintenance costs were analyzed using the same bus (Bus 119). Service data from 2004 was the latest the department had record of and 2013 the most recent; all other comparisons 2003 vs Graph 4: Reflects the Consumer Price Index (CPI) which measures inflation, averaged for a given calendar year. 36

121 INCREASE HIGH SCHOOL ATHLETIC TRANSPORTATION FEES The district should increase high school athletic transportation fees 10 to cover general fund expenses related to bussing students to and from athletic events. If the district required high schools increase athletic transportation fees, it could reduce its general fund expenses as much as $500, annually. See Appendix B for break-even analysis of fees charged per year and per sport. CHARGE MIDDLE SCHOOL ATHLETIC TRANSPORTATION FEES According to the WCSD Student Activities and Athletics Office, approximately 4,400 middle school athletes participate in sports each year. The department s calculations for bussing athletes to sporting events remain at $4.40 per mile; however, the district does not charge any fees to middle school athletes. Consequently, in fiscal years 2013 and 2014, the district incurred approximately $39,000 and $42,000 in middle school athletic transportation costs respectively. If the district charged a $10 fee 12 to middle school athletes it could cover 100% of the middle school athletic transportation costs and reduce its general fund expenditures by approximately $42,000 annually. RECOMMENDATION: 21. Increase athletic transportation fees: a. Charge high school athletes a $75-80 fee per sport or $95 fee per year. b. Charge middle school athletes a $10 fee per year. RESPONSE: 21. DO NOT ACCEPT Student Services - Athletics - raised the athletic transportation fees for high schools to $35 per student annually and have instituted a $5.00 fee per year for middle school students for athletic transportation. TIMELINE FOR IMPLEMENTATION: Implemented July 1, 2015 AUDITOR NOTE: See footnotes below. 10 Research revealed other school districts charge athletes up to $125 per sport. 11 Students have many opportunities to raise funds throughout a school year to cover extra-curricular costs, such as fees. For example, high school band students raised roughly $513,000 in fiscal year 2014, through fundraisers, donations, fees, raffles, etc. for competitions, trips, and transportation. 12 Fiscal year 2013 and 2014 approximations: costs of $81,000 divided by 8,800 middle school student athletes = $9.20 (rounded to $10). 37

122 RECOMMENDATION: 22. Analyze expenses and recalculate fees periodically (bi-annually) to encompass all athletic transportation expenses. RESPONSE: 22. ACCEPT Review and send monthly report to Business. Review expenses quarterly for Athletics to determine current expenses. ATTACHMENTS: Attachment S Process Map TRAN702 B Athletics TIMELINE FOR IMPLEMENTATION: Implemented July 1, COLLECT ATHLETIC TRANSPORTATION FEES AT HIGH SCHOOLS At fiscal year-end 2014, approximately $190,000 in athletic transportation fees remained in student activity fund accounts. In addition, in the past two years, of the eleven high schools who participated in district-wide athletics: Five failed to submit fees: o Approximately $190,000 in athletic transportation fees remained in student activity fund accounts. Two high schools claimed they were exempt per verbal agreement, but collected transportation fees from student athletes of approximately $15,000. o Three additional high schools collected, but did not remit, approximately $66,000. Six remaining high schools failed to submit a portion of collected fees, totaling approximately $12,000. All athletic transportation fees are due to the business office for deposit by deadlines established in the High School Activities and Athletics Manual (i.e. fiscal year 2015: fall sports 9/15/14, winter sports 12/1/14, and spring sports 3/15/15). If schools deposited all athletic transportation fees to the district as required, general fund expenses could be reduced by $190,000 as a one-time cost savings and $81,000 annually thereafter. The business office accountant records athletic transportation fees; however, no one reconciles the total number of athletes tracked by the WCSD Student Activities and Athletics Office to the fees deposited. To 38

123 further ensure all funds are deposited to the general fund, the district should reconcile the total number of student athletes to fees deposited during each athletic season. RECOMMENDATION: 23. Require all high schools submit all athletic transportation fees collected to the business office for deposit to the general fund, including prior years fees collected. RESPONSE: 23. ACCEPT Student Services is responsible for the oversight of this recommendation. TIMELINE FOR IMPLEMENTATION: N/A RESPONSE FROM STUDENT ACTIVITIES AND ATHLETICS: ACCEPT Procedures are in place for athletic transportation fee collection. See attached. TIMELINE FOR IMPLEMENTATION: Currently implemented. RECOMMENDATION: 24. Disallow exemption of fees for any school using district transportation during regular season athletics. RESPONSE: 24. ACCEPT with stipulations Student Services has discontinued this practice and all District schools are required to collect fees for transportation for athletics. Scholarships are offered for students who have hardships in paying this fee. Student Services is responsible for the continued oversight of this recommendation. Upon direction from the Superintendent or her/his designee this may be waived for extraordinary circumstances. TIMELINE FOR IMPLEMENTATION: Implemented July 1,

124 RECOMMENDATION: 25. Reconcile total student athletes to fees deposited. RESPONSE: 25. ACCEPT See response in item 23. TIMELINE FOR IMPLEMENTATION: N/A RESPONSE FROM STUDENT ACTIVITIES AND ATHLETICS: ACCEPT Reconciliation of total student athletic fees fall under the responsibility of the individual school s athletic program. The balance of students participating with money collected is reflective of students who may be classified Free/Reduced lunch or with other financial hardships, sites athletic department are to make up difference. TIMELINE FOR IMPLEMENTATION: Currently implemented. PAYMENT OF ATHLETIC TRIPS The district uses budget transfers to pay for athletic trips. Each month the transportation account technician pulls a Triptracker Trip Account Balance Report reflecting the balance due for athletics and forwards it to the business office accountant. The business office accountant allocates the total amount due using a journal entry template and records the transfer in the appropriate GL accounts in BusinessPLUS. RECONCILE REPORTS AND INPUT TRANSFERS The excursion manager does not reconcile BusinessPLUS budget transfer reports to the All District Athletics account in Triptracker. As a consequence, at fiscal year-end 2014 Triptracker reflected an outstanding account balance over 90 days of approximately $1.1 million. In addition, the department does not have written procedures detailing the process for athletic trip billing and reconciling BusinessPLUS to Triptracker. Detail testing revealed a budget transfer error in fiscal year 2014, which reduced the Transportation Department s Operating Budget by $4,128. As stated in COSO s Internal Control Integrated Framework, Pertinent information must be identified, captured and communicated in a form and timeframe that enable people to carry out their 40

125 responsibilities. Information systems produce reports, containing operational, financial and compliancerelated information, that make it possible to run and control the business. If the excursion manager reconciled BusinessPLUS budget transfer reports to Triptracker and input payment for each athletic trip monthly, she could determine outstanding trips and identify errors. RECOMMENDATION: 26. Reconcile BusinessPLUS budget transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. RESPONSE: 26. ACCEPT Process in place in TRAN702 Triptracker Billing. Account Tech reconciles BusinessPlus budget transfer reports to Triptracker monthly. (See Attachment P Process Map TRAN702 Triptracker Billing). TIMELINE FOR IMPLEMENTATION: Implemented July 1, RECOMMENDATION: 27. Create written procedures for athletic trip billing and reconciliation. RESPONSE: 27. ACCEPT Process in place in TRAN702 B Athletics. Athletic trip billing and reconciliation verified and forwarded to Business by Account Tech monthly. (See Attachment S Process Map TRAN702 B Athletics). TIMELINE FOR IMPLEMENTATION: Implemented July 1,

126 APPENDIX A FUEL AND MAINTENANCE COST SAVINGS District Position FY14 Total Mileage FY14 Personal Commute Miles (estimated) FY14 Fuel Costs Fuel Cost/Mile Annual Fuel Costs Savings FY14 Maint. Costs Maint. Cost/ Mile Annual Maint. Costs Savings Total Savings Area Superintendent 10,747 5,700 $1, $.11 $ $ $.03 $ $ Area Superintendent 8,800 5,950 1, , Area Superintendent 8,592 2,250 1, Area Superintendent 6,956 5, , Area Superintendent 6,796 2,400 1, Area Superintendent 6,169 4, Area Superintendent 5,347 1, Total Cost Savings $5, District Position FY14 Total Mileage FY14 Personal Commute Miles (estimated) FY14 Fuel Costs Fuel Cost/Mile Annual Fuel Costs Savings FY14 Maint. Costs Maint. Cost/ Mile Annual Maint. Costs Savings Total Savings Deputy Superintendent 8,801 4,500 $1, $.21 $ $1, $.14 $ $1, Chief of Staff 9,311 6,750 1, , , , , Chief Academic Officer 6,490 4,350 1, , Senior Director Student Accounting 5,933 4, Executive Director Student Support Services 10,474 5,750 1, , Chief School Accountability Officer 7,437 5,700 1, , , , Total Cost Savings $9,

127 District Position TAKE-HOME VEHICLES - MILEAGE BREAKDOWN Estimated Monthly Business Miles 1,000 Miles/Month Total Average Monthly Miles 1,000 Miles/Month Area Superintendent 421 No 896 No Area Superintendent 238 No 733 No Area Superintendent 529 No 716 No Area Superintendent 121 No 580 No Area Superintendent 366 No 566 No Area Superintendent 172 No 514 No Area Superintendent 341 No 446 No District Position Estimated Monthly Business Miles 1,000 Miles/Month Total Average Monthly Miles 1,000 Miles/Month Deputy Superintendent 358 No 733 No Chief of Staff 213 No 776 No Chief Academic Officer 178 No 541 No Senior Director Student Accounting 90 No 494 No Executive Director Student Support Services 394 No 873 No Chief School Accountability Officer 145 No 620 No 43

128 APPENDIX B BREAK-EVEN ANALYSIS (IF FEE CHARGED PER YEAR) Fee Average Collections* % of Fees Covering Expenses* $ 25 - current $ 134,925 27% ,910 32% ,895 38% ,880 43% ,865 48% ,850 54% ,835 59% ,820 64% ,805 70% ,790 75% ,775 81% ,760 86% ,745 91% ,730 97% $ , % *Based on FY13 and FY14 average number of high school athletes (5,397) and average annual athletic transportation expenses ($502,148). Fee FY13 Collections* BREAK-EVEN ANALYSIS (IF FEE CHARGED PER SPORT) % FY13 Expenses Covered FY14 Collections* % FY14 Expenses Covered $ 25 - current $ 163,650 31% $ 164,050 34% ,380 38% 196,860 41% ,110 44% 229,670 47% ,840 50% 262,480 54% ,570 57% 295,290 61% ,300 63% 328,100 68% ,030 69% 360,910 75% ,760 75% 393,720 81% ,490 82% 426,530 88% ,220 88% 459,340 95% $ ,950 94% 492, % $ , % 524, % *Based on the total number of high school athletes in FY13 (6,546) and FY14 (6,562), provided by the WCSD Student Activities and Athletics Office and annual athletic transportation expenses in FY13 (520,650.26) and FY14 (483,645.85), recorded in Triptracker. 44

129 APPENDIX C OFFICE OF SCHOOL PERFORMANCE Area Superintendent A Zone Debra Area Superintendent Area 1 Richard Swanberg Luis Aguilar Area Superintendent Area 2 Dr. Roger Gonzalez Luis Aguilar Area Superintendent Area 3 Dr. JoEtta Gonzales Mireya Castro Area Superintendent Area 4 Troy Parks Area Superintendent Area 5 Chad Hicks Area Superintendent Options Area Dr. Byron Green Irene Garcia Janet Peraldo Janet Peraldo Mireya Castro HIGH SCHOOLS HIGH SCHOOLS HIGH SCHOOLS HIGH SCHOOLS HIGH SCHOOLS HIGH SCHOOLS HIGH SCHOOLS Sparks North Valleys Hug Galena Reed Damonte Ranch Washoe Innovations Kevin Carroll Jeana Curtis Lauren Ford Tom Brown Mary Vesco Denise Hausauer Taylor Harper Reno McQueen Incline Spanish Springs Washoe Inspire Kris Hackbush Sue Denning Leslie Herman Tammy Hart Josh Rosenbloom TMCC Wooster North Star Susan Mayes Smith Leah Keuscher Katy Hadley MIDDLE SCHOOLS MIDDLE SCHOOLS MIDDLE SCHOOLS MIDDLE SCHOOLS MIDDLE SCHOOLS MIDDLE SCHOOLS Cold Springs Billinghurst Pine Mendive Depoali Counseling Roberta Duvall Sheri Lyn Cutler Brad Boudreau Brandon Bringhurst Juliana Annand Katherine Louden O Brien Clayton Incline Shaw Dilworth Diversity & Equity Mary Basso Bruce Meissner Leslie Herman Gina Leonhard Laura Petersen Tiffany Young Swope Traner Vaughn Sparks George Brown Chad Lindeen Ginny Knowles Stacey Ting Senini ELEMENTARY SCHOOLS ELEMENTARY SCHOOLS ELEMENTARY SCHOOLS ELEMENTARY SCHOOLS ELEMENTARY SCHOOLS ELEMENTARY SCHOOLS Anderson Alice Smith Allen Huffaker Beasley Brown ROTC Joe Ernst Arch Ruth Mischelle Bain Susan Novelli Mary Ellen Arrascada Angie Bryan Scott Maryott Booth Beck Bennett Hunsberger Diedrichsen Donner Springs Student Activities Sara Cunningham Ruth Williams Michael Henry Jenni Ricci Megan Waugh June Gronert Brian Rothe Corbett Denise Dufrene Duncan Susan Kehoe Elmcrest Ann Marie Dickson Lincoln Park Jason Childs Loder Dina Ciaramella Mathews Heidi Gavrilles Stead Yuen Fong Sun Valley Prim Walters Veterans Jenni Anderson Warner Don Angotti Caughlin Ranch Melissa Thoroughman Desert Heights Vickie Duty Howard Gomes Mary Beth Akers Gomm John Sutherland Hunter Lake Amanda McWilliams Lemmon Valley Erin Lane Mt. Rose Kristen Brown Silver Lake Angela Flora Cannan Kelly Humphreys Melton Mary Slagle Peavine Alan Holmes Lemelson Jonna AuCoin Towles Rhonda Van Duesen Verdi Gloria Geil Westergard Tiffany McMaster Winnemucca Susan Frank Lenz William Burt Smithridge Tom Wortman Incline Leslie Herman Dodson Don McHenry Hidden Valley Jim Studer AACT Robert Sullivan Juniper Kim Polson Moss Alyson Kendrick Whitehead Kelly Keane Hall Dave Keller Sepulveda Doug Parry Spanish Springs Jim Verdi Taylor Karen Wallis Van Gorder Jen Van Tress Gerlach/Natchez Rick Taylor Double Diamond Kristell Moller Pleasant Valley Derek Cordell Drake Nichole Truax Dunn Marla Mentaberry Greenbrae Rose Kane Maxwell Larry Kuper Mitchell Teri Vaughan Palmer Raegan Virgil Risley Amy Wright Kate Smith Debbie O Gorman Family School Partnerships D Lisa Crain Charter Schools Stacey Cooper MTSS/Behavioral Services Trish Shaffer GT Lisa Riggs 45

130 APPENDIX D WASHOE COUNTY SCHOOL DISTRICT TRANSPORTATION DEPARTMENT TRANSPORTATION ADMINISTRATION 1850 Kleppe Lane Sparks, Nevada Phone: (775) Rick Martin Director Margo Medeiros Assistant Director, Special Services, Professional Development, and Excursions Todd Duncan Assistant Director, Finance and Operations Below are responses to the Internal Audit report, Audit of Transportation Department White Fleet and School Bus Services. Transportation thanks the Audit staff for its cooperation in assisting with defining the areas that lacked cohesive processes and where there are some inconsistencies in the accounting processes between Business, Athletics, and Transportation. Rick Martin, Director of Transportation October 2, 2015 RECOMMENDATION: 1. Create and implement a policy: a. Requiring employees to fuel District-owned vehicles at District or other government sites. b. Defining specific circumstances when alternative gas stations would be acceptable. ACCEPT with some stipulations RESPONSE: District procedures and guidelines with stipulations to use the District and designated government fueling facilities are attached. Certain divisions that at times do not use the District and government fueling stations are typically divisions that due to their type of service must at times use public fueling sites (i.e. School Police, Facilities Management, Administration Building Administrative Leadership). Certain District regions do not have access to District facilities or government sites for fueling. Natchez, Gerlach, and Incline are examples of areas with this lack of access. In addition, when buses or other District personnel using white fleet vehicles travel out of Reno/Sparks proper to other counties or states (California), they do not have access to other government entities for fueling and must use public fueling sites. ATTACHMENTS: Attachment A WCSD Fueling Procedure Attachment B WCSD Fueling Pin Letter Attachment C WCSD Card Lock Fueling Sites TIMELINE FOR IMPLEMENTATION: Use of District facilities and other designated facilities for fueling District vehicles was implemented in guidelines and procedures in April RECOMMENDATION: 2. Require employees use District-owned vehicles when available. DO NOT ACCEPT RESPONSE: The only facility that may be able to reasonably require employees to use District-owned vehicles as a primary source of transportation is the Administration Building based on the number of Pool Vehicles there. The other divisions and school sites do not have access to pool cars. 46

131 The recent deletion of White Fleet vehicles that were sent to auction in October 2014 and April 2015, while reducing District expenditures, left a number of departments without pool car access. Those that do have car pool access are as follows: Administration Building 4 Pool Cars available for all departments except IT and School Police IT has 9 Field Tech cars at the Administration Building Transportation has 3 Standby Driver Cars 1 for each yard Central, North, & South. These are used by Standby Substitute Drivers to go from Yard to Yard to cover bus routes for drivers that called in and are not available to drive their normal route. Items for consideration: Transportation researched in depth to ensure all data was collected pertaining to the cost per mile for pool vehicles as opposed to using mileage for use of an employee-owned vehicle for District business (i.e. attending a meeting off site). It was found that fuel, salary, and repair were designated in the cost per mile and accounted for the.42 per mile. This does not include the cost for employee benefits and administrative costs. This additional cost added.17 to the total which raised the cost to.59 per mile as opposed to the.56 in This cost was raised to 57 per mile charged in 2015 for mileage as set by the IRS. Those vehicles designated in the report that could facilitate a savings are designated for executive level administrative leadership. There are other costs that would offset the use of these vehicles being designated in a vehicle pool. Those costs include time for the Administrator to get the pool vehicle at the designated parking area and then drive to their destination. The hour savings of labor time for an executive level administrator would more than make up for the mileage savings cost at.57 a mile. (i.e. 20 miles from the parking area to their destination and back at.57 a mile would be a cost of $22.80.) TIMELINE FOR IMPLEMENTATION: N/A RECOMMENDATION: 3. Require employees provide documentation that no cars were available when requesting reimbursement. DO NOT ACCEPT RESPONSE: As stated in Recommendation #2, based on the number of pool vehicles in the District, there is only one area (the Administration Building) that has the vehicle resources to require staff to do this. The other divisions have no access or very limited access to pool cars. Also as stated previously the cost per mile of white fleet vehicles in other divisions is.59 per mile as opposed to the.57 per mile for mileage reimbursement. Even if a reasonable documentation enforcement vehicle is presented as Internal Audit has endeavored to do (See Attachment D Vehicle Availability Form), it would only be viable at the Administration Building in a limited capacity. It would then need to be determined as to what department at the Administration Building would provide oversight of the Pool Vehicles. We do not believe there is a cost effective, reasonable enforcement process for this proposed documentation process. ATTACHMENTS: Attachment D Vehicle Availability Form TIMELINE FOR IMPLEMENTATION: N/A RECOMMENDATION: 4. Create a policy establishing employees using personal vehicles will not be eligible for reimbursement or will only receive half the reimbursement per NRS DO NOT ACCEPT 47

132 RESPONSE: The White Fleet Committee is continuing to work on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: Transportation has been investigating the creation of a stipend program based on current vehicle usage that would be similar to the cell phone stipend program. Transportation has looked at the stipend programs and mileage programs from other public entities in Washoe County and Clark County. All of the identified programs provide full mileage compensation, or a stipend, for use of their private vehicles for work purposes. This information and data has been provided to the Chief Operations Officer and the Superintendent by the White Fleet Committee (representatives from Transportation, Business, School Police, Facilities Management, and Education). Clark County s Travel Regulations, Vehicle Use Regulations, and Mileage Reimbursement Schedule are attached. ATTACHMENTS: Attachment E CCSD Travel Reg. Attachment F CCSD Vehicle Use Reg. Attachment G CCSD Mileage Reimbursement Schedule WHITE FLEET INFORMATION ATTACHMENTS Attachment H Other Public Entities Vehicle Stipend and Mileage Reimbursement Attachment I Other Public Entities Vehicle Clark County School District Stipend and Mileage Reimbursement Attachment J Other Public Entities Vehicle Mileage Compensation Comps Attachment K Other Public Entities Vehicle Pros Cons for In-House, Mileage, Stipend Options TIMELINE FOR IMPLEMENTATION: N/A RECOMMENDATION: 5. Eliminate take-home vehicles. DO NOT ACCEPT RESPONSE: The White Fleet Committee is continuing to work on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: Only divisions designated for emergency response are currently allowed to take a company vehicle home. This would include designated personnel out of School Police, the Emergency Service Manager, and the Child Advocates office. Certain positions on the Executive Leadership Administrative Team need to be considered by the Superintendent or Superintendent Designee to have the authorization to take their assigned vehicle home for operational efficiency. It is inefficient to require Executive Leadership Administrative Team members to first report to their duty station before traveling to school sites or to meetings. Losses in productivity would vastly outweigh any financial savings attributed to this recommendation. (See attached White Fleet Information: Attachment H Other Public Entities Vehicle Stipend and Mileage Reimbursement, Attachment I Other Public Entities Vehicle Clark County School District Stipend and Mileage Reimbursement, Attachment J Other Public Entities Vehicle Mileage Compensation Comps, Attachment K Other Public Entities Vehicle Pros Cons for In-House, Mileage, Stipend Options) TIMELINE FOR IMPLEMENTATION: N/A RECOMMENDATION: 48

133 6. Assign vehicles to better serve District needs (i.e. motor pool, bond vehicle). ACCEPT RESPONSE: The White Fleet Committee has been collecting data and developing processes during the previous 12 months to establish criteria for vehicle use by departments, departmental divisions, position criteria, etc. Based on the collected data, Transportation did a reassignment of six vehicles during the school year for the school year. Item for consideration: Purchase of White Fleet vehicles by certain funding sources (i.e. Grant Funds, Bond Funds, Enterprise Funds, etc.) require those vehicles stay with those divisions or school sites that the funding designates. The vehicle identified as being purchased with Bond Funds will be returned to the Capital Projects Department. TIMELINE FOR IMPLEMENTATION: This has been implemented beginning April 2015 and will be monitored annually by the White Fleet Committee to ensure vehicle use is equitable. Procedures have been developed that determine vehicle placement, replacement, or discontinuing vehicle use completely based on the annual Utilization Analysis Report. ATTACHMENT L Utilization Analysis RECOMMENDATION: 7. Create and implement policy and procedures specific to when take-home vehicle usage is appropriate (i.e. school police and on-call positions). ACCEPT with stipulations RESPONSE: The White Fleet Committee is currently working on this in conjunction with the offices of the Superintendent and Chief Operations Officer. Policy and procedures will be created and implemented regarding when take-home vehicle usage is appropriate (i.e. School Police and on-call positions) pending the final outcome of recommendation 5. Items for consideration: School Police vehicles are allowed to be taken home as per their negotiated agreement with the Washoe County School District. The Emergency Manager vehicle and the Child Advocate vehicle are designated as Emergency Response vehicles and are designated through the District as vehicles that response time is critical and are allowed to be taken home. As stated in Recommendation 5, In addition, certain positions on the Executive Leadership Administrative Team need to be considered by the Superintendent or Superintendent Designee to have the authorization to take their assigned vehicle home for operational efficiency. It is inefficient to require Executive Leadership Administrative Team members to first report to their duty station before traveling to school sites or to meetings. Losses in productivity would vastly outweigh any financial savings attributed to this recommendation. TIMELINE FOR IMPLEMENTATION: Implementation can begin as early as January 1, 2016, but only when the outcome of item 5 is agreed upon by Administration. RECOMMENDATION: 8. Reevaluate and update policies and procedures to ensure utilization requirements are appropriate. ACCEPT with stipulations 49

134 RESPONSE: The White Fleet Committee is currently working on this item in conjunction with the offices of the Superintendent and Chief Operations Officer. Items for consideration: The Administrative Regulation is specific for overall operational efficiency for the District, but certain division requirements are not so easily defined in the confines of this requirement and may need some broader language as determined by designated assignment or overall District need. Washoe County School District Administrative Regulation Use of District Owned Vehicles Assignment of District-Owned Vehicles a. District-owned vehicles may be assigned to individuals or departments when at least 1,000 miles of travel per month are required for District business. The majority of School Police vehicles, the Emergency Manager Vehicle, and the Child Advocate vehicle do not reach this requirement monthly. This would include executive level administrators who are required to be off site on a regular basis for meetings, school site issues, and other community events, but will not exceed the 1,000 miles per month threshold. b. All District-owned vehicles are available to best serve employee transportation needs of the District, and no vehicle is considered permanently assigned to any individual or department. School Police and Facilities Management and Capital Projects are examples of divisions that require specific types of vehicles that have to be specifically assigned to the division or persons/positions within the division. c. District-owned vehicles are to be used for official business only. Employees shall not use the vehicle for personal use (e.g. shopping after work hours, transporting family members, or hauling personal items). Should a person have to take a District vehicle to his/her residence during the work day, the person must first notify his/her immediate supervisor. TIMELINE FOR IMPLEMENTATION: Transportation currently evaluates vehicle utilization monthly and annually. Adjustments are made accordingly based on divisional requirements. Policies and processes are currently in review for refinement and updating through the White Fleet committee. RECOMMENDATION: 9. Monitor white fleet usage and reassign vehicles to departments/motor pools where utilization requirements will be met; or 10. Reduce the white fleet accordingly. ACCEPT with stipulations RESPONSE: As indicated in recommendation #6, Transportation did a reassignment of some vehicles during the school year for the school year. Vehicles were reassigned to the following departments to better facilitate use and efficiency for the vehicle and the department for the school year. The departments are: Family School Partnership, Washoe Inspire Academy, Office of School Performance, Special Education Student Support Services - student transport, Facilities Management Housekeeping Operations Field Supervisor Incline/South Reno, and Curriculum & Instruction. In addition, a vehicle was replaced for Drop-Out Prevention/Truancy for a vehicle that lost an engine. In addition, the white fleet was reduced by sending 27 vehicles to auction in October 2014 and sending 9 vehicles to auction in April The white fleet committee will continue to assess the white fleet and make reductions in vehicles as needed. TIMELINE FOR IMPLEMENTATION: Currently evaluate daily and monthly. Adjustments are being made accordingly. Policies and processes are currently in review for refinement and updating through the White Fleet committee. 50

135 RECOMMENDATION: 11. Create a policy requiring all employees who might use a District-owned vehicle take the District s defensive driving class. ACCEPT RESPONSE: Established in Board Policy 7505 Use of District-Owned Vehicles. Referenced directly in Administrative Procedure 7550 Transporting Students in a Private or White Fleet Vehicle Draft. ATTACHMENTS Attachment M Policy 7505 Attachment N Administrative Regulation 7550 TIMELINE FOR IMPLEMENTATION: Implemented May 2012 and revised in September RECOMMENDATION: 12. Require employees who currently drive District-owned vehicles, but have not completed the defensive driving class, take the course. ACCEPT with stipulations: RESPONSE: As referenced in Recommendation #11 Policy and Administrative Regulation in place. Documentation of course completion required for Transportation approval to drive a student in a District vehicle as referenced in Administrative Form 7576 Annual Request to Transport Students. Transportation only approves ability to drive students in District Vehicles if the driver provides a copy of the WCSD issued Defensive Driving Certificate. ATTACHMENTS Attachment O Administrative Form 7576 Annual Request to Transport Students. Item for consideration: To require any current employee driving a District vehicle to take the WCSD Defensive Driving Course who has not completed the course will require assistance from all departments assigned district vehicles to coordinate with School Police to sign their employee up for the WCSD Defensive Driving Course and not allow their employee to drive a District vehicle until the employee has their certificate. This purview would fall under School Police as they provide the training classes and certifications for the WCSD Defensive Driving course. TIMELINE FOR IMPLEMENTATION: Implemented July 1, 2015 for Transporting Students in District Vehicles. RECOMMENDATION: 13. Obtain proof of course completion prior to issuance of a driver ID/PIN. ACCEPT: RESPONSE: A procedure is in place that when a request is placed by a department for the issuance of a driver ID/PIN number for driving and fueling a District vehicle that the following occurs: Transportation contacts School Police to verify that the employee has taken and completed the WCSD Defensive Driving Course. If employee has taken and completed the course the Transportation Fleet Operations Manager approves the issuance of the driver ID/PIN number by the vendor to the employee. 51

136 If employee has not taken or completed the course the Transportation Fleet Operations Manager denies the issuance of the ID/PIN number and informs the department of the denial of the request. TIMELINE FOR IMPLEMENTATION: April 2015 RECOMMENDATION: 14. Separate collection duties by: a. Designating an individual (excursion technician) to receive and restrictively endorse checks when received. b. Designating a second individual (excursion manager) to verify the check amount and safeguard funds until sent to the business office for deposit. ACCEPT RESPONSE: Procedure in place - TRAN702 Triptracker Billing Excursion Manager/Tech completes deposit transmittal and places it along with the checks in safe. The checks and transmittals are then verified by Account Tech and deposited into the account. ATTACHMENTS Attachment P - Process Map TRAN702 Triptracker Billing TIMELINE FOR IMPLEMENTATION: Implemented May 2015 RECOMMENDATION: 15. Properly safeguard checks by: a. Depositing checks when received, or b. Purchasing a key/combo safe: i. Require involvement of two individuals to access the safe (e.g. provide key to the excursion manager and backup and combination to the excursion technician and backup). ii. Maintain checks in safe until deposited with the Business Office (at least once a week), ensuring funds are not left over the weekend. ACCEPT RESPONSE: Key/Combo Safe purchased. See recommendation #14 for deposit of checks for safe keeping. TIMELINE FOR IMPLEMENTATION: Implemented May 2015 RECOMMENDATION: 16. Reconcile BusinessPLUS transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. ACCEPT RESPONSE: Process outlined on TRAN702 process map. Account Tech reconciles BusinessPlus budget transfer reports to Triptracker monthly. (See Attachment P - Process Map TRAN702 Triptracker Billing.) TIMELINE FOR IMPLEMENTATION: Implemented May, RECOMMENDATION: 52

137 17. Pursue payment collection as documented in the Triptracker Billing Process Map for schools. ACCEPT RESPONSE: Process outlined in TRANSUB702 A Collections. Account Tech forwards invoices at 45 days past due and notifies the Area Superintendent for the school. At 60 days past due the Account Tech forwards the outstanding invoice to Business and Business attempts to get the invoice paid. After Business contacts the school for payment the school either sends us payment or Business debits the school s budget account and sends a copy of the transfer. ATTACHMENTS Attachment Q Process Map TRANSUB702-A Collections TIMELINE FOR IMPLEMENTATION: Implemented May 19, RECOMMENDATION: 18. Create and implement a documented billing and collection process for programs. ACCEPT RESPONSE: Process outlined in TRANSUB702 A Collections. Account Tech forwards invoices at 45 days past due and notifies the Area Superintendent for the school. At 60 days past due the Excursions Manager suspends transportation requests per Transportation Director until balance is paid in full. If payment is not received, Account Tech forwards invoice to School or Agency Rep/ s Business Rep, school Principal & Area Superintendent of notice of 90 days past due notice of non-payment. (See Attachment Q Process Map - TRANSUB702-A Collections). TIMELINE FOR IMPLEMENTATION: Implemented July 1, 2015 RECOMMENDATION 19. Create and implement written procedures for write-offs to include: a. Documenting management approvals, b. Segregation of duties, c. Reducing balances appropriately, and d. Reviewing Triptracker reports reflecting write-offs, by management. ACCEPT RESPONSE: Process in place in TRANSUB702 C- Charge Reversal. Account has gone through the entire billing and collections process write off proposed by the Excursion Manager to Transportation Director. Transportation Director formally approves write-off on account. Excursion Manager adjusts amount owed in Triptracker and closes account with notes placed in Triptracker. Excursion Manager reviews write-off report monthly. ATTACHMENTS Attachment R Process Map - TRANSUB702-C TripTracker Charge Reversal TIMELINE FOR IMPLEMENTATION: Implemented - September 1, 2015 RECOMMENDATION: 20. Update and maintain contact information to include school and administrator addresses. ACCEPT with stipulations 53

138 RESPONSE: Requires access to most current information on school site contacts. Current information provided through Human Resources has a number of administrators and secretaries who are no longer at the site. Most current: Principal School - Secretary Assistant Principal List Revision C. School site generic addresses are often not looked at on a daily basis and often reviewed by a clerical aide and not reviewed by those who booked the trips with excursions. TIMELINE FOR IMPLEMENTATION: Contingent on ability to have access to most current monthly school site administrator staff information. RECOMMENDATION: 21. Increase athletic transportation fees: a. Charge high school athletes a $75-$80 fee per sport or $95 fee per year. b. Charge middle school athletes a $10 fee per year. DO NOT ACCEPT RESPONSE: Student Services - Athletics - raised the athletic transportation fees for high schools to $35 per student annually and have instituted a $5.00 fee per year for middle school students for athletic transportation. TIMELINE FOR IMPLEMENTATION: Implemented July 1, 2015 RECOMMENDATION: 22. Analyze expenses and recalculate fees periodically (bi-annually) to encompass all athletic transportation expenses. ACCEPT RESPONSE: Review and send monthly report to Business. Review expenses quarterly for Athletics to determine current expenses. ATTACHMENTS Attachment S Process Map TRAN702 B Athletics TIMELINE FOR IMPLEMENTATION: Implemented July 1, RECOMMENDATION: 23. Require all high schools submit all athletic transportation fees collected to the business office for deposit to the general fund, including prior years fee collected. ACCEPT RESPONSE: Student Services is responsible for the oversight of this recommendation. TIMELINE FOR IMPLEMENTATION: N/A RECOMMENDATION: 24. Disallow exemption of fees for any school using District transportation during regular season athletics. ACCEPT with stipulations RESPONSE: Student Services has discontinued this practice and all District schools are required to collect fees for transportation for athletics. Scholarships are offered for students who have hardships in 54

139 paying this fee. Student Services is responsible for the continued oversight of this recommendation. Upon direction from the Superintendent or her/his designee this may be waived for extraordinary circumstances. TIMELINE FOR IMPLEMENTATION: Implemented July 1, RECOMMENDATION: 25. Reconcile total student athletes to fees deposited. ACCEPT RESPONSE: See response in item 23. TIMELINE FOR IMPLEMENTATION: N/A RECOMMENDATION: 26. Reconcile BusinessPLUS budget transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. ACCEPT RESPONSE: Process in place in TRAN702 Triptracker Billing. Account Tech reconciles BusinessPlus budget transfer reports to Triptracker monthly. (See Attachment P Process Map TRAN702 Triptracker Billing). TIMELINE FOR IMPLEMENTATION: Implemented July 1, RECOMMENDATION: 27. Create written procedures for athletic trip billing and reconciliation. ACCEPT RESPONSE: Process in place in TRAN702 B Athletics. Athletic trip billing and reconciliation verified and forwarded to Business by Account Tech monthly. (See Attachment S Process Map TRAN702 B Athletics). TIMELINE FOR IMPLEMENTATION: Implemented July 1,

140 District Vehicle Fueling Procedure District vehicles have a designated fuel card Do not share vehicle fuel cards Fuel at approved government and card lock sites only The steps listed below may differ from site to site *Position vehicle so fuel tank access is on same side as pump nozzle *Turn vehicle off and secure *Write date and odometer on fuel card log located in vehicle if equipped *Assure vehicle number on fuel card matches vehicle you are fueling *Swipe fuel card through card reader *Enter pump number that corresponds with type of fuel you desire *Enter vehicles current odometer reading *Enter driver I.D, this is the PIN issued to you by Transportation Do not share this number *Begin fueling vehicle *Never leave nozzle unattended while fueling *Only fuel one vehicle at a time *Re-secure fueling nozzle and vehicle fuel cap after transaction is complete *Write gallons pumped on fuel card log if equipped *Report spills immediately to shop office or corresponding vendor Please contact Jon Kelley at for all fuel card or site related issues 56

141 Welcome to the Washoe County School District. You have been assigned a personalized fuel PIN to be used when fueling any District vehicle. Please do not share this PIN as it is assigned to you. Every District vehicle has been assigned a specific fuel card located within the vehicle. This fuel card along with your assigned PIN will allow you to access fuel at approved fueling sites. District vehicles are required to fuel at approved government or card lock fueling site for all transactions. Retail fuel purchases are no longer accepted. Alternative fueling locations for out of county and state travel along with special assignments can be arrange by contacting the Fleet Operations Manager. Below is a quick reference for government fueling sites within Washoe County. Approved card lock site can be found on a separate attachment. *645 Mt. Rose Highway, Incline NV. Open 24hrs *684 Geiger Grade Road, Reno NV. Transportation South Yard, Open from 5:00am until 5:30pm M-F *1850 Kleppe Lane, Sparks NV. Transportation Central/Getto Yard, Open from 5:00am until 10:00pm M-F *330 Doubleback Road, Reno NV. Transportation North Yard, Open from 5:00am until 5:00pm M-F *250 Twilight Drive, Reno NV. UNR Motor Pool, Open from 6:00am until 6:00pm M-F Please feel free to contact me with any questions or concerns. Jon Kelley Fleet Operations Manager 685 Geiger Grade Road Reno, Nevada Office JKelley@washoeschools.net 57

142 Western Energetix #204 Automotive Way off Kietzke Hwy 395 exit Mill St. going West. Left on Kietzke Lane. Left on Automotive Way. Site is behind Winkel Pontiac. Western Energetix # W. 4th Street I-80 exit Keystone Ave. going South. Right on 4th St. (about 2 blocks). Site is approx. 1/4 mile West of Keystone Ave. on 4th St. 58

143 Western Energetix # Colbert Ave. From Hwy. 395: Take Exit 61. Go North on S. Virginia for 1/2 mi. Turn right on Longley Lane. Go 2 blocks and turn left on Colbert. Site located on the right hand side. Western Energetix #206 Glendale & International Way I-80 exit Rock Blvd. going South approx. 1/4 mile. Left on Glendale Ave. 1 mile. Left on International Way. Good for big diesels. 59

144 Western Energetix # S. Stanford Way From I-80: Exit South on McCarron< Ave. East. Turn right on Glendale Ave. Turn right on Stanford Way. From I-395: Exit East on Glendale Ave. Turn left on Stanford Way Western Energetix # Nugget Ave. From I-80: Exit South on McCarran Blvd. Go West on Nugget Ave. 60

145 Western Energetix # Western Road Hwy 395 (Business) exit Panther Dr. Right on Western Rd. Site is Approx. 8 miles North of Reno in Panther Valley. Carson City Approved card lock site Carson Valley Oil Co. # S. Carson St. Northbd. Hwy 395 & Eastbd. Hwy 50: Turn left into Shell Station at intersection of Hwy. 395 & Stewart St. From Williams St.: South on Hwy Go 1 1/4 mi. to Station. 61

146 This form is to be submitted with mileage reimbursement request evidencing that there was not a district-owned vehicle available for employee use. Date: Driver Name: Driver Signature: Department: Employee Signature Evidencing No Availability: (i.e. employee in charge of vehicle keys and check-out) Printed Name: Vehicle Location: 62

147 CLARK COUNTY SCHOOL DISTRICT REGULATION R-3511 TRAVEL BY DISTRICT EMPLOYEES I. The Superintendent of Schools authorizes that employees who must travel in order to perform the responsibilities of their positions with the Clark County School District be placed on travel status and be reimbursed travel expenses in accordance with Nevada statute. II. To ensure maximum benefit, within the limits of budgetary allocations, from travel by District employees and in compliance with Nevada statute, guidelines have been established as follows: A. Expense Claims 1. Travel Advance/Expense Claim (CCF-174) forms are used to claim reimbursement of any expenses incurred in the performance of authorized school business, including professional growth, travel and/or subsistence, requests for expense advances, and mileage allowances. 2. Expense claims are to be submitted as soon as possible. Claims will be processed within a period of 30 working days from when they are received in the Accounting Department. School principals and department heads are responsible for the segregation of claims and the classification of expenses. Only claims that total $10.00 or more will be processed. B. Professional Growth Expenditures for professional growth may be authorized to permit employees to obtain training directly beneficial to the District in performance of the employee s assigned duties. C. Out-of-District Travel When employees travel to workshops, conferences, and activities which are held at locations within the boundaries of the Clark County School District but which are not sponsored by the District, such travel is considered out-of-district travel. Out-of-District Travel Requests (CCF-145) must be approved prior to attending and for use in processing paperwork for registration fees and mileage allowances related to the event. Per diem subsistence will not be paid for such travel. 63

148 R-3511 (page 2) Out-of-District travel expenses shall not exceed the cost of commercial air transportation where readily available. 1. Authorization a. Out-of-District Travel Requests (CCF-145) must be approved prior to authorization for expenditures for out-of- District travel by employees. A CCF-145 must be attached to the claim for reimbursement. b. Student Activity Authorization must be approved prior to outof-district travel by students and accompanying adults. c. Any travel outside the continental United States must be approved in advance by the Superintendent of Schools. 2. Subsistence a. Per diem subsistence rates shall be in compliance with Nevada statutes. Meal rates, including tip allowance, are equal to the rate established by the U. S. General Services Administration for employees of the federal government and vary by state, city, or region. Certain District policies may differ and supersede the established federal guidelines or policies. Current per diem rates by region are available at b. Legitimate expenses for lodging, transportation, communications, and transportation for handling of business-related materials which occur during Districtauthorized travel should be placed on a District purchasing card whenever possible. All expenses paid out-of-pocket will be paid upon submission of itemized receipts. If a receipt is not obtainable, the employee must submit a detailed written memo attached to the claim, indicating that a receipt is not available and that the amount claimed is accurate. 64

149 R-3511 (page 3) D. In-District Travel c. No cost shall be claimed which is not incurred, and an employee may not request reimbursement for expenses incurred by another. If meals are provided as part of an employee s participation in a conference or other activity, costs for such meals shall not be claimed. If adequate meals are provided as part of air travel, no cost shall be claimed for such meals. 1. No per diem subsistence shall be paid for travel within the District except under the following two conditions: a. The employee is directed by the District to travel more than 50 miles one way from the regular assigned work location, and b. The District-directed travel status requires the employee to work more than a full-time workday on the day(s) on which travel takes place. If both of the above conditions are met, meal costs may be reimbursed in the same amounts as designed for out-of- District travel. E. Meal Reimbursement Without an Overnight Stay The District will not supply per diem if travel, whether in-district or out-of-district, does not involve an overnight stay. F. Travel and Subsistence Paid by Outside Sources 1. Governmental agencies or professional associations may pay travel and subsistence expenses of District employees when they attend specified meetings or activities to represent or otherwise act in the interest of the District. Commercial air transportation may be charged to the District and employees may request an expense advance. All such expenditures must be repaid to the District immediately upon receipt of repayment from the outside sources. Preferably, such repayments should be payable to the District. 65

150 R-3511 (page 4) 2. No employee under any circumstances is to receive payments both from the District and from an outside source. 3. No employee shall receive travel or per diem subsistence from any individual, company, or organization who has done, or is attempting to do, business with the District unless the sole purpose of the trip involves out-of-district training related to the service or operation of District equipment which, for the convenience of the supplier and the District, is conducted at an educational center maintained by the supplier at a location other than a District facility. If such travel is in the District s interest but is not for training in the use of goods or services already procured, the expense, upon proper authorization, shall be paid by the District. G. Requests for Expense Advances Employees may request advance funds of no less than $ for authorized out-of-district travel at least 30 days prior to the event to cover anticipated travel and/or subsistence expenses. Unused advanced funds and itemized receipts must be remitted to the District together with the employee s Travel Advance/Expense Claim (CCF-174) form promptly upon termination of the travel. Exceptions to the $ minimum may be approved by the appropriate division head upon written request from the employee. H. Mileage Allowance 1. The mileage allowance rate shall not exceed the maximum provided by Nevada statute. This rate may be revised when it is deemed to be economical, expedient, feasible, and in the best interest of the District. 2. When practical, District-owned vehicles will be provided to minimize mileage allowance expenses. School business mileage is mileage travel in-district which accrues on a single day. Assigned school is the school the employee is assigned to for a particular workday. School business mileage shall be calculated as follows: 66

151 R-3511 (page 5) a. Total mileage from employees assigned school or office to their various destinations and return to assigned school or office. b. When employees do not first report to their assigned school or office, deduct: (1) mileage from home to first business destination; or (2) mileage from home to assigned school or office; whichever is less. c. When employees proceed from last destination to home, deduct: (1) mileage from last destination to home, or (2) mileage from assigned school or office to home; whichever is less. d. Total mileage for assignment outside regular hours of employment. Only employees assigned to school activities by the school principal will be eligible for mileage allowances. Legal Reference: NRS Chapter 281 General Provisions NRS Chapter 391 Personnel Review Responsibility: Finance and Operations Division Adopted: :2/66 Revised: 3/26/81; 3511:9/24/81; 4/21/87; 7/1/89; 8/14/90; 10/26/93; 12/11/97 Pol. Gov. Review: 6/28/01 Revised: 10/9/07; 8/13/09 67

152 Attachment F CLARK COUNTY SCHOOL DISTRICT REGULATION R-3537 DISTRICT-OWNED VEHICLES I. The Superintendent of Schools authorizes the assignment of a District-owned vehicle for use in Clark County School District business when a District employee's responsibilities so warrant and/or the assignment is economically feasible. II. The Clark County School District will procure and maintain the minimum number of non-bus vehicles of all types essential for employee transportation needs in the performance of District business. A. Procurement of District-Owned Vehicles 1. All vehicles procured for the District must be coordinated through the Transportation Department and the Fleet Manager, and approved by the Chief Financial Officer (CFO). This is necessary to assure that all passenger vehicles meet Federal Motor Carrier Safety Regulations and Nevada Revised Statutes, which may be applicable depending on the intended use of the vehicle. B. Assignment of District-Owned Vehicles 1. District-owned vehicles may be assigned to individuals or departments when at least 600 miles of travel per month are required for in-district business, with the approval of the CFO. 2. In some instances, contingent upon an established need, vehicles may be assigned to a department when less than 600 miles of travel per month are required (i.e., transporting materials or equipment for students), with the approval of the CFO. 3. All District-owned vehicles are available to best serve employee transportation needs of the District and no vehicle is considered "permanently" assigned to any individual or department. 68

153 R-3537 (page 2) C. Housing of District-Owned Vehicles 1. All District-owned vehicles will be housed at District locations only, as designated by the CFO upon assignment of the vehicle. 2. Upon approval of the CFO, exceptions may be granted as follows: a. To supervisors or administrators responsible for night or weekend activities which must be monitored. b. To supervisors or employees who are subject to, and are routinely called for, 24-hour or weekend calls for emergency service work. c. To employees who are assigned to one or more work locations in addition to their primary work location. D. Maintenance of District-Owned Vehicles Employees using any District vehicle are responsible for its care and return in good condition. All employees assigned District-owned vehicles are responsible for meeting established vehicle maintenance schedules. E. Accidents Involving District-Owned Vehicles When an employee driving a District-owned vehicle is involved in an accident, the employee/driver must: 1. Report the accident to law enforcement officials so a report can be taken. 2. Immediately notify the supervisor and the Risk Management Department so that it can be determined if a scene investigation is necessary. 3. Obtain all information regarding those involved in the accident and any witnesses including name, address, phone number, insurance and vehicle information. 4. Speak only with law enforcement authorities, District supervisors, and/or Risk Management Department representatives regarding the accident. The driver should never make any statement regarding fau lt or responsibility for the accident. Any questions regarding payment for damage or injury must be referred to the Risk Management Department. 69

154 R-3537 (page 3) 5. Complete an Accident Report - Vehicle form (CCF-102) and submit to the supervisor within 24 hours. F. Proper Use and Operation of District-Owned Vehicles 1. All District-owned vehicles are to be used for District business only. District-owned vehicles are not to be used for personal business (e.g., driving to and from personal appointments, errands, non work-related lunch meetings, or court appearances). This is inclusive of those persons assigned a take-home vehicle. 2. Official decals, including, but not limited to, the District decal, How Am I Driving, and Vehicle Numbers are not to be tampered with, removed from, or added to a vehicle, except by authorized personnel. 3. The assigned vehicle operator is responsible for checking the vehicle on a daily basis and filling out the CCSD Vehicle Inspection Checklist weekly. Vehicles that are not assigned to a particular operator are the responsibility of the assigned department. 4. Non-district employees are not permitted to operate District vehicles. Unauthorized riders are not permitted in District vehicles. Any citation or violation of a traffic law related to the use of a District vehicle may subject the user to discipline, up to and including dismissal. 5. District vehicles may be used to obtain lunch by employees under certain circumstances, such as, but not limited to, construction or maintenance employees who are assigned to a job site that does not afford them an opportunity to have lunch at their regular work site. Additionally, employees who find themselves out of the office and in a District vehicle during their regular lunch period may not make more than a slight deviation from their regular and reasonable route of travel to and from the office in order to purchase and/or eat lunch. Review Responsibility: Finance and Operations Division Adopted: [ / :10/18/62] Revised: 6/30/77; 9/1/78; 5/14/81 ; 12/11/97 Pol. Gov. Review: 3537:6/28/01 Revised: 6/9/05; 5/8/08 70

155 Attachment G CLARK COUNTY MONTHLY MILEAGE REIMBURSEMENT SCHEDULE CATEGORY REGULAR MONTHLY MILES MONTHLY REIMBURSEMENT Category 1 Less than 200 miles per month Per mile basis Category to 299 miles per month $180 per month Category to 449 miles per month $240 per month Category to 650 miles per month $360 per month Category 5 More than 650 miles per month Add for additional mileage at state mileage rate Eligibility for a fixed monthly allowance (Categories 2 through 5) is based on central administrative employees at range 42 or higher who are required to physically visit multiple District locations on a regular basis (e.g., weekly) as a requirement of the employee s job duties. Administrative personnel who are required to use a personal vehicle daily for routine job duties, who are also on-call 24 hours, seven days per week and are regularly required to travel to multiple districtwide locations, and who do not qualify for additional compensation or compensatory time, are eligible for Category 4. This includes academic managers, associate superintendents, and deputy superintendents. Allowance rates are indexed based on the IRS-published mileage rate. The reimbursement schedule may be reviewed and revised at any time at the discretion of the District. Rosa Reynolds Business and Finance, CCSD

156 STIPEND & M~LEAGE REIMBURSEMENT City of Reno - no response City of Sparks - possible stipend program for higher level staff, follows IRS criteria of $.57 per mile submitted WCSD - no stipend program, follows IRS criteria of $.57 per mile \tvashoe County - no stipend program, follows IRS criteria of $.57 per mile UNR - possible stipend program for higher level staff, follows modified IRS criteria of $.285 per mile submitted for Maintenance division only 72

157 STIPEND & MILEAGE REIMBURSEMENT Clark County School District CATEGORY REGULAR MONTHLY MILES MONTHLY REIMBURSEMENT Category 1 Less than 200 miles per month Per mile basis Category to 299 miles per month $180 per month Category to 449 miles per month $240 per month Category to 650 miles per month $360 per month Category 5 More than 650 miles per month Add for additional mileage at state mileage rate CCSD Continued: Eligibility for a fixed monthly al'lowance (Categories 2 through 5) is based on central administrative employees at range 42 and higher who are required to physically visit multiple District locations on a regular basis (e.g., weekly) as a requirement of the employee'.s job duties. Administrative personnel who are required to use. a personal vehicle daily for routine job duties, who are also on-call 24 hours, seven days a week and are regularly required to travel to multiple districtwide locations, and who do not qualify for additional compensation or compensatory time, are eligible for Category 4. This includes academic managers, associate superinte_ndents, and deputy superintendents. Allowance rates are indexed based on the IRS-published mileage rate, cu rrently $.57. The reimbursement schedule may be reviewed and revised at a ny time at the discretion of the District. 73

158 I I DEPT I VEHICLE I I II VEH MODEL.. I.. YEAR MILEAGE COMPENSATiON COMPS. MILEAGE 1-/.:.'..... Monthly TR~ VELECI. Average :. Clark County 7/ 01/ZOlA TO,. : MonthlY._-. Relmbursent Stipend 03/U/ i Mlleage State Rate :.... Clark County Plus Addltlonal Stllte Rate In-house to111p@.568 AOMIN 1291 TERRAIN $303 $360 $302 ADMIN 4608 EXPLORER $4~ $360 $97 $466 ADMIN DURANGO a 830 $473 $360 $103 $471 ADMJN 9601 TRAVERSE 2009 ADMIN POOL AOMIN POOL AOMIN POOL ADMIN POOL AOMIN """' AOMIN POOL A1.J1vilN Dl'l/11 ADMIN 402 EXPLORER FOCUS FOCUS STRATUS 2005 STRATUS STRATUS STRATUS 2005 POOl 5653 STRATUS 2005 AUMJN Dnf'II 7603 CALIBER 2007 ADMJN POOL 8620 MALIBU $421 $ $47 $ $62 $62 8:12: 109 $62 $ $83 $ $354 $ $303 $ $213 $ $434 $ $164 $ $224 $ mo. Total Bmo. Total $J,6l1 8 mo. Total $3,4.34 $51 Per-diem Pe,-diem Per-diem.Per-diem $64 $315 $3, mo. Total $420 $47 $62 $62 $82 $352 $301 $212 $433 $163 $223 $3,598 8 mo. Total 74

159 PROS CONS FOR IN-HOUSE, MILEAGE, STIPEND OPTIONS Monthly Reimbursem ent Monthly Reimbursement Oark Cou nty Stipend Comp CC Plus IRS ~.57 PROS CONS PROS CONS PRPS CONS No reimbursement Cleric.al labu, saving~ lack or rundl~ Non-taxable r,elrnbursemenl Increased clerical costs - Tracking Decrease neet size (TBD) i ilxable income District owned inventory DistriCI owned in-,enlory Actual cost reimbursement Decrease fleet size (TBD) n me savings for malntenant.e techs Negative perception of benefit Reduced mlleaie costs Increased cost per rnlle IRS reimbursement will continue to OVer/ Under pay versus actual over lime with retluction In fleet Oea ease fleet site (TSO) Increase use Time saving) for maintenance techs lncrea.sed clerical costs Decrease fleet size (T'BO) Costs will lnvease periodically Potentla lly most cost ly option 75

160 CLASS CODE VEHICLE DEPARTMENT MILEAGE fuel costs per mile FUEL LUBRICANT OUTSIDE PARTS/LABOR TIRES INSIDE LABOR PARTS Additional Costs cost per mile (additional costs) IRS MILEAGE COMPARISON COST TO MAINTAIN VEHICLE COST PER MILE VAN 741 ROTC 0 $ $ - $ - $ - $ - $ - $ - $ $ - CAR 630 NS 76 $ 0.43 $ $ 2.93 $ - $ - $ $ $ $ 2.74 $ $ $ 3.17 PU 479 FM RS&A 226 $ 0.08 $ $ - $ - $ - $ $ $ $ 0.63 $ $ $ 0.71 PU 769 WH 282 $ 0.43 $ $ - $ - $ - $ $ - $ $ 0.09 $ $ $ 0.52 PU 505 FM RS&A 549 $ 0.21 $ $ $ $ - $ $ $ $ 1.33 $ $ 1, $ 1.54 CAR 5514 FM MGMT 705 $ 0.22 $ $ 9.78 $ - $ - $ $ 8.48 $ $ 0.16 $ $ $ 0.60 CAR 616 NS 770 $ 0.23 $ $ - $ - $ - $ $ - $ $ 0.03 $ $ $ 0.26 CAR 447 ADMIN POOL 775 $ 0.15 $ $ - $ $ - $ $ $ $ 1.26 $ $ 1, $ 1.59 VAN 1476 SP-EDNB 776 $ 0.26 $ $ - $ $ - $ $ $ $ 0.29 $ $ $ 0.87 CAR 621 CI 894 $ 0.20 $ $ $ - $ - $ $ $ 1, $ 1.49 $ $ 1, $ 1.69 SUV 323 FM I.T 1136 $ 0.28 $ $ $ - $ - $ $ $ $ 0.23 $ $ $ 0.51 CAR 443 FM I.T 1188 $ 0.22 $ $ - $ - $ - $ - $ - $ - $ - $ $ $ 0.24 CAR 446 ADMIN POOL 1241 $ 0.12 $ $ - $ - $ - $ $ $ $ 0.14 $ $ $ 0.38 CAR 5515 FM MGMT 1385 $ 0.15 $ $ $ $ - $ $ $ $ 0.67 $ $ 1, $ 0.94 SUV 740 ROTC 1397 $ 0.21 $ $ - $ - $ - $ $ - $ $ 0.02 $ $ $ 0.23 CAR 606 CIT 1450 $ 0.19 $ $ $ $ - $ $ $ 1, $ 0.77 $ $ 1, $ 1.03 CAR 5516 FM MGMT 1670 $ 0.13 $ $ - $ $ - $ $ - $ $ 0.24 $ $ $ 0.46 VAN 309 CI 1802 $ 0.11 $ $ $ $ - $ $ $ $ 0.42 $ 1, $ 1, $ 0.59 SUV 320 FM I.T 1904 $ 0.29 $ $ - $ - $ - $ $ - $ $ 0.03 $ 1, $ $ 0.34 VAN 626 SP-EDNB 1913 $ 0.35 $ $ $ - $ - $ $ $ $ 0.52 $ 1, $ 1, $ 0.88 VAN 627 SP-EDNB 2038 $ 0.26 $ $ 9.78 $ $ - $ $ $ $ 0.23 $ 1, $ 1, $ 0.49 CAR 5449 ADMIN POOL 2057 $ 0.17 $ $ - $ $ - $ $ $ $ 0.26 $ 1, $ 1, $ 0.50 CAR 5652 ADMIN POOL 2147 $ 0.10 $ $ 9.78 $ - $ - $ $ $ $ 0.24 $ 1, $ $ 0.40 CAR 7603 ADMIN POOL 2155 $ 0.13 $ $ - $ - $ - $ $ $ $ 0.15 $ 1, $ $ 0.36 SUV 668 ADMIN POOL 2267 $ 0.28 $ $ $ - $ - $ $ $ $ 0.08 $ 1, $ 1, $ 0.36 PU 510 BOND 2641 $ 0.38 $ $ $ - $ - $ $ $ $ 0.10 $ 1, $ 1, $ 0.48 CAR 5804 BOND 2693 $ 0.15 $ $ $ $ - $ $ 2.43 $ $ 0.19 $ 1, $ 1, $ 0.40 VAN 628 SP-EDNB 3035 $ 0.25 $ $ 9.78 $ - $ - $ $ $ $ 0.09 $ 1, $ 1, $ 0.34 VAN 4771 SP-EDNB 3049 $ 0.26 $ $ 9.78 $ $ - $ $ $ $ 0.15 $ 1, $ 1, $ 0.49 CAR 8705 SP-EDNB 3110 $ 0.22 $ $ $ - $ - $ $ $ $ 0.06 $ 1, $ 1, $ 0.34 PU 504 BOND 3161 $ 0.27 $ $ $ $ - $ $ $ 1, $ 0.41 $ 1, $ 2, $ 0.67 SUV 643 GGNB 3178 $ 0.13 $ $ - $ - $ - $ $ - $ $ 0.01 $ 1, $ $ 0.21 SUV 402 ADMIN POOL 3231 $ 0.20 $ $ $ $ - $ $ $ 1, $ 0.36 $ 1, $ 2, $ 0.56 SUV 5510 FM MGMT 3245 $ 0.21 $ $ $ - $ - $ $ $ $ 0.06 $ 1, $ 1, $ 0.34 SUV 400 FM I.T 3368 $ 0.24 $ $ $ $ - $ $ $ 1, $ 0.39 $ 1, $ 2, $ 0.63 VAN 4772 SP-EDNB 3451 $ 0.25 $ $ 9.78 $ $ - $ $ $ $ 0.11 $ 1, $ 1, $ 0.42 CAR 5806 BOND 3537 $ 0.13 $ $ - $ - $ - $ $ $ $ 0.04 $ 1, $ $ 0.21 CAR 5803 BOND 3570 $ 0.15 $ $ $ - $ - $ $ $ $ 0.14 $ 1, $ 1, $ 0.33 SUV 554 RSK MGMT 3672 $ 0.27 $ 1, $ $ $ - $ 1, $ $ 2, $ 0.73 $ 2, $ 3, $ 1.02 VAN 4770 SP-EDNB 4070 $ 0.26 $ 1, $ 9.78 $ - $ - $ $ $ $ 0.11 $ 2, $ 1, $ 0.42 Page 76 1

161 CLASS CODE VEHICLE DEPARTMENT MILEAGE fuel costs per mile FUEL LUBRICANT OUTSIDE PARTS/LABOR TIRES INSIDE LABOR PARTS Additional Costs cost per mile (additional costs) IRS MILEAGE COMPARISON COST TO MAINTAIN VEHICLE COST PER MILE CAR 9412 FM I.T 4081 $ 0.16 $ $ $ $ - $ $ $ $ 0.20 $ 2, $ 1, $ 0.40 CAR 9413 FM I.T 4549 $ 0.17 $ $ $ - $ - $ $ $ $ 0.09 $ 2, $ 1, $ 0.29 VAN 7701 ROTC 4580 $ 0.24 $ 1, $ $ $ - $ $ 9.20 $ $ 0.06 $ 2, $ 1, $ 0.35 CAR 8620 ADMIN POOL 4812 $ 0.17 $ $ 9.78 $ $ - $ $ $ $ 0.14 $ 2, $ 1, $ 0.33 SUV 322 GGNB 4968 $ 0.30 $ 1, $ $ - $ - $ $ $ $ 0.09 $ 2, $ 2, $ 0.39 SUV 556 NVNB 5305 $ 0.21 $ 1, $ - $ $ - $ $ $ $ 0.06 $ 2, $ 1, $ 0.27 CAR 7604 ADMIN POOL 5347 $ 0.14 $ $ - $ - $ - $ $ $ $ 0.05 $ 2, $ 1, $ 0.22 CAR 8615 SP-EDNB 5422 $ 0.15 $ $ 9.78 $ $ - $ $ $ $ 0.14 $ 3, $ 1, $ 0.31 VAN 4773 SP-EDNB 5430 $ 0.23 $ 1, $ $ $ - $ $ $ $ 0.15 $ 3, $ 2, $ 0.41 CAR 5651 ADMIN POOL 5933 $ 0.14 $ $ $ - $ - $ $ $ $ 0.04 $ 3, $ 1, $ 0.21 PU 1290 FM RS&A 5935 $ 0.27 $ 1, $ $ - $ - $ $ 2.95 $ $ 0.02 $ 3, $ 1, $ 0.34 SUV 629 INCLINE 6015 $ 0.20 $ 1, $ $ - $ - $ $ $ $ 0.09 $ 3, $ 1, $ 0.28 SUV 315 GGNB 6098 $ 0.21 $ 1, $ $ - $ - $ $ $ $ 0.11 $ 3, $ 2, $ 0.36 CAR 7602 OSP 6169 $ 0.14 $ $ 9.78 $ - $ - $ $ $ $ 0.03 $ 3, $ 1, $ 0.20 SUV 308 GERLACH 6324 $ 0.32 $ 2, $ $ - $ - $ $ $ $ 0.09 $ 3, $ 2, $ 0.41 SUV 692 DOP 6347 $ 0.24 $ 1, $ $ $ - $ $ $ 1, $ 0.16 $ 3, $ 2, $ 0.40 CAR 5650 ADMIN POOL 6490 $ 0.18 $ 1, $ $ - $ - $ $ $ $ 0.12 $ 3, $ 2, $ 0.32 CAR 5801 BOND 6654 $ 0.14 $ $ 9.78 $ $ - $ $ 8.82 $ $ 0.09 $ 3, $ 1, $ 0.25 CAR 7601 OSP 6796 $ 0.15 $ 1, $ - $ - $ - $ $ $ $ 0.02 $ 3, $ 1, $ 0.20 SUV 411 SVNB 6935 $ 0.24 $ 1, $ 9.78 $ $ - $ $ $ $ 0.04 $ 3, $ 2, $ 0.28 CAR 8619 OSP 6956 $ 0.13 $ $ - $ $ - $ $ $ $ 0.13 $ 3, $ 2, $ 0.28 SUV 314 GGNB 6975 $ 0.21 $ 1, $ $ - $ - $ $ $ $ 0.05 $ 3, $ 2, $ 0.30 SUV 5805 ADMIN 7081 $ 0.18 $ 1, $ $ - $ - $ $ $ $ 0.13 $ 3, $ 2, $ 0.35 PU 507 BOND 7124 $ 0.25 $ 1, $ $ - $ - $ $ 8.63 $ $ 0.02 $ 3, $ 2, $ 0.27 SUV 673 GGNB 7155 $ 0.20 $ 1, $ $ - $ - $ $ $ 1, $ 0.17 $ 3, $ 2, $ 0.36 CAR 5502 FM RS&A 7176 $ 0.16 $ 1, $ $ - $ - $ $ $ $ 0.04 $ 3, $ 1, $ 0.23 CAR 5653 ADMIN POOL 7437 $ 0.16 $ 1, $ $ - $ - $ $ 1, $ 1, $ 0.22 $ 4, $ 3, $ 0.39 CAR 4501 FM RS&A 7454 $ 0.16 $ 1, $ $ - $ - $ $ $ $ 0.04 $ 4, $ 1, $ 0.22 SUV 6306 INCLINE 7556 $ 0.16 $ 1, $ $ $ - $ $ $ 1, $ 0.19 $ 4, $ 2, $ 0.39 CAR 6602 DOP 7749 $ 0.18 $ 1, $ 9.78 $ $ - $ $ 6.55 $ $ 0.06 $ 4, $ 2, $ 0.26 PU 458 BOND 8041 $ 0.15 $ 1, $ 9.78 $ - $ - $ $ $ $ 0.05 $ 4, $ 1, $ 0.19 CAR 5802 BOND 8093 $ 0.13 $ 1, $ 9.78 $ $ - $ $ $ $ 0.03 $ 4, $ 1, $ 0.19 PU 8810 BOND 8566 $ 0.19 $ 1, $ $ - $ - $ $ $ $ 0.07 $ 4, $ 2, $ 0.28 CAR 8618 OSP 8592 $ 0.14 $ 1, $ - $ - $ - $ $ $ $ 0.05 $ 4, $ 1, $ 0.21 VAN 4743 CIT 8623 $ 0.24 $ 2, $ $ - $ - $ $ $ 1, $ 0.16 $ 4, $ 3, $ 0.42 SUV 8809 BOND 8688 $ 0.19 $ 1, $ $ 1, $ - $ $ $ 1, $ 0.18 $ 4, $ 3, $ 0.40 Page 77 2

162 CLASS CODE VEHICLE DEPARTMENT MILEAGE fuel costs per mile FUEL LUBRICANT OUTSIDE PARTS/LABOR TIRES INSIDE LABOR PARTS Additional Costs cost per mile (additional costs) IRS MILEAGE COMPARISON COST TO MAINTAIN VEHICLE COST PER MILE SUV 6323 SP-EDTRANS 8781 $ 0.23 $ 2, $ $ - $ - $ $ $ $ 0.04 $ 4, $ 2, $ 0.30 CAR 7605 OSP 8800 $ 0.14 $ 1, $ - $ $ - $ $ $ $ 0.08 $ 4, $ 2, $ 0.24 SUV 9601 ADMIN 8801 $ 0.21 $ 1, $ $ $ - $ $ $ 1, $ 0.14 $ 4, $ 3, $ 0.39 SUV 804 BOND 8940 $ 0.22 $ 1, $ $ - $ - $ $ $ $ 0.03 $ 4, $ 2, $ 0.27 SUV 4608 ADMIN 9311 $ 0.19 $ 1, $ $ $ - $ $ $ 1, $ 0.16 $ 5, $ 3, $ 0.38 SUV 1291 ADMIN 9317 $ 0.21 $ 1, $ $ 6, $ - $ $ $ 6, $ 0.69 $ 5, $ 8, $ 0.94 CAR 404 DOP 9820 $ 0.23 $ 2, $ $ $ - $ $ $ $ 0.08 $ 5, $ 3, $ 0.31 CAR 608 DOP $ 0.20 $ 2, $ $ $ - $ 1, $ $ 2, $ 0.29 $ 5, $ 5, $ 0.50 CAR 8614 DOP $ 0.19 $ 2, $ $ $ - $ $ $ $ 0.04 $ 5, $ 2, $ 0.24 CAR 8704 SP-EDNB $ 0.16 $ 1, $ $ $ - $ $ $ $ 0.09 $ 5, $ 2, $ 0.27 CAR 7600 OSP $ 0.11 $ 1, $ $ - $ - $ $ $ $ 0.03 $ 5, $ 1, $ 0.15 PU 802 BOND $ 0.22 $ 2, $ $ $ - $ 1, $ $ 1, $ 0.15 $ 5, $ 4, $ 0.38 VAN 6601 DOP $ 0.22 $ 2, $ $ $ - $ $ $ 1, $ 0.12 $ 6, $ 4, $ 0.35 VAN 4744 CIT $ 0.25 $ 3, $ $ $ - $ $ $ 1, $ 0.11 $ 7, $ 5, $ 0.38 PU 1305 INCLINE $ 0.23 $ 3, $ $ - $ - $ $ $ 1, $ 0.08 $ 7, $ 4, $ 0.31 SUV 7303 INCLINE $ 0.23 $ 3, $ $ $ - $ $ $ 1, $ 0.11 $ 8, $ 5, $ 0.38 SUV 8807 INCLINE $ 0.16 $ 2, $ - $ $ - $ $ $ 1, $ 0.11 $ 8, $ 4, $ 0.28 SUV 6603 GERLACH $ 0.22 $ 4, $ $ 1, $ - $ $ $ 1, $ 0.09 $ 12, $ 6, $ 0.32 $ 0.20 $ 0.20 Mileage Reimbursement Cost per Mile Average Cost per Mile (fuel and maintenance) Savings $ $ $ Under-utilized miles/additional miles available per WCSD (12,000) Requirement Under-utilized miles/additional miles available per State (8,400) Requirement 623, ,999 0 Savings Under WCSD Requirement 0 Cost of miles at $0.55 $ 342, Cost of miles at $0.40 $ 249, Potential Savings if district-owned vehicles were utilized, rather than employees reimbursed for mileage. $ 93, $ - Savings Under State Requirement 0 Cost of miles at $0.55 $ 177, Cost of miles at $0.40 $ 128, Potential Savings if district-owned vehicles were utilized, rather than employees reimbursed for mileage. $ 48, Page 78 3

163 DRAFT Responsible Office: Office of Operations, Transportation Department PURPOSE BOARD POLICY USE OF DISTRICT-OWNED VEHICLES The Board of Trustees authorizes the assignment and/or use of a District-owned vehicle for use in Washoe County School District business when a District employee s responsibilities so warrant and/or the assignment is economically feasible. The District will procure and maintain vehicles of all types, within contract and feasibility guidelines, essential for employee transportation needs in the performance of District business. POLICY 1. Assignment of District-Owned Vehicles a. All District-owned vehicles are available to best serve employee transportation needs of the District, and no vehicle is considered permanently assigned to any individual or department. b. District-owned vehicles are to be used for official business only. 2. Use of District-Owned or Leased Vehicle a. The Transportation Department shall establish procedures related to use of District-owned and leased vehicles. b. Only District employees shall be allowed to operate a District-owned or leased vehicle. Authorization to operate such a vehicle is subject to: i. Approval by the Site Administrator; and ii. Transportation Department review and clearance of current Nevada driver s license and Nevada Department of Motor Vehicles driving record check. 3. Housing and Maintenance of District-Owned Vehicles 79

164 a. District-owned vehicles will be housed at District locations designated by the Transportation Department, with the following exceptions: school police vehicles and designated transportation vehicles. During periods of inclement weather or after hour emergencies, other exceptions will be made only on the basis of demonstrated cost-effectiveness and upon the approval of the Superintendent. b. Employees using District vehicles are responsible for their care and return in good condition. All employees assigned District-owned vehicles are responsible for meeting vehicle maintenance schedules as established by the Transportation Department. c. Employees are responsible for fueling at District approved facilities. 4. Alcohol and Drug Testing a. By eliminating substance abuse and its effects in the workplace, drivers of District vehicles shall be in a condition to perform their duties safely and efficiently, in the best interests of the District s students, staff, the community, as well as themselves. b. The District shall comply with Federal laws and regulations related to the attainment and maintenance of an alcohol and drug-free workplace, and its purpose of reducing accidents that result in fatalities, injuries and property damage. c. The District shall develop and implement an administrative regulation related to alcohol and controlled substance testing for any driver who is licensed to operate certain commercial vehicles. DESIRED OUTCOMES 1. Through this policy, the District shall establish procedures related to the use of both District-owned and leased vehicles with the intent to increase safety, and improve efficiency. IMPLEMENTATION GUIDELINES & ASSOCIATED DOCUMENTS 1. This policy reflects the goals of the District s Strategic Plan. 2. This policy aligns with the governing documents of the District, to include: a. Administrative Regulation , Use of District-Owned Vehicles b. Board Policy 7500, Transportation of Students c. Administrative Regulation 7545, Transportation of Students 80

165 d. Administrative Regulation , Operation of Motor Vehicles for District Purposes 3. This policy complies with Nevada Revised Statutes (NRS) and Nevada Administrative Code (NAC), to include: a. Chapter 392, Pupils, and specifically: i. NRS , Transportation 4. This policy complies with federal laws and regulations, to include: a. U.S. Department of Transportation guidelines related to school buses i. Federal Transit Administration ii. National Highway Traffic Safety Administration b. Title 49, Transportation, Part 382, Controlled substances and alcohol use and testing, through the U.S. Department of Transportation s Federal Motor Carrier Safety Administration. c. Title 49, Transportation, Part 40, Procedures for Transportation Workplace Drug and Alcohol Testing Programs. REVISION HISTORY Date Revision Modification 8/13/ Adopted 5/12/ Revised 11/11/ Revised 5/07/ Revised name changed to Board Policy TBA 4.0 Revised 81

166 Responsible: Department of Transportation PURPOSE This administrative procedure shall establish the guidelines related to transporting students in a private or white fleet vehicle. PROCEDURE 1. Prior approval must be obtained on an annual basis: a. To transport a student (other than the parent/legal guardian s own child). b. For a District employee to operate any motor vehicle owned, leased, rented, or otherwise obtained using District funds. 2. Private Vehicle i. Specific requirements and restrictions are defined in Board Policy and Administrative Regulations. a. Private vehicles may not be used by any driver to transport students out of the State of Nevada or Lake Tahoe Basin/Truckee area except to transport his/her own child(ren). b. Non-District employees drivers seeking approval to transport a student (other than the parent/legal guardian s own child) in a private vehicle must: i. Obtain approval from the school administrator utilizing the Annual Request to Transport Students or Drive a School District Vehicle form; ii. Submit the Annual Request to Transport Students or Drive a School District Vehicle form and the following accompanying documents to the District s Department of Transportation at least 6 weeks prior to the event: year DMV record within 30 days of the date of approval. 2. Current proof of insurance that meets the state minimum requirements of coverage and is updated as needed to be current for the transport event. 82

167 3. Approved volunteer application with fingerprints (this takes up to 8 weeks). iii. Non-District drivers may not transport students unless he/she has an approved copy of the Annual Request to Transport Students in his/her possession. c. District employees seeking approval to transport a student (other than his/her own child) in a private vehicle must: 3. White Fleet Vehicle i. Obtain approval from the school administrator utilizing the Annual Request form; ii. Submit the Annual Request form and the following accompanying documents to the Department of Transportation at least 1 6 weeks prior to the event: year DMV record within 30 days of the date of approval. 2. Current proof of insurance that meets the state minimum requirements of coverage and is updated as needed to be current for the transport event. iii. District employees may not transport students in District vehicles unless he/she has an approved copy of the Annual Request to Transport Students or Drive a School District Vehicle in his/her possession. a. Applicants for approval to drive students in a District White Fleet vehicle must: i. Obtain approval from the school administrator utilizing the Annual Request to Transport Students or Drive a School District Vehicle form; ii. Be a current District employee iii. Receive the District s Defensive driving certification iv. Submit the Annual Request to Transport Students or Drive a School District Vehicle form and the following accompanying documents to the Department of Transportation Excursions Division at least 1 _6 weeks prior to the event: year DMV record within 30 days of the date of approval. b. Only District employees may drive District-owned vehicles. 83

168 i. District employees may not transport students in District vehicles unless he/she has an approved copy of the Annual Request to Transport Students in his/her possession. 4. District Leased/Rented Vehicles a. Only District employees and District approved volunteers may drive District leased/rented vehicles. 5. Additional Information i. Obtain approval from the school administrator utilizing the Annual Request to Transport Students form; ii. Receive the District s Defensive driving certification. iii. Submit the Annual Request to Transport Students form and the following accompanying documents to the Department of Transportation Excursions Division at least _6 weeks prior to the event: year DMV record within 30 days of the date of approval. 2. District approved volunteers only - Current proof of insurance that meets the state minimum requirements of coverage and is updated as needed to be current for the transport event. 3. District approved volunteers only - Approved volunteer application with fingerprints (this takes up to 8 weeks). iv. District employees or District approved volunteers may not transport students in District Leased or Rented vehicles unless he/she has an approved copy of the Annual Request to Transport Students in his/her possession. a. Contact: Transportation Excursions, atognoni@washoeschools.net or at IMPLEMENTATION GUIDELINES & ASSOCIATED DOCUMENTS 1. This Administrative Procedure reflects the goals of the District s Strategic Plan. 2. This Administrative Procedure aligns with the District s governing documents, to include: a. Board Policy , Transportation of Students b. Administrative Regulation 7545, Transportation of Students 84

169 c. Annual Request to Transport Students or Drive a School District Vehicle Application (TRAN-F AF). REVIEW AND REPORTING 1. This procedure and any accompanying documents will be reviewed annually. REVISION HISTORY Date Revision Modification 10/12/ Adopted as Accepted Practice 01/01/ Revised: converted to Administrative Procedure 85

170 Approval must be granted each year to all drivers who transport students (other than the driver s own children). This includes school district employees who may operate any motor vehicle owned, leased, rented or otherwise obtained using WCSD funds to transport students. (Note: Full insurance must be purchased when renting or leasing a vehicle) Specific requirements and restrictions are defined in WCSD Administrative Regulation Please read all instructions carefully before signing this request. Applicants may not transport students unless they have an approved copy of this form in their possession. Please allow one (1) week for transportation to process this request. ONLY SCHOOL DISTRICT EMPLOYEES MAY DRIVE WCSD OWNED/LEASED/RENTED VEHICLES PRIVATE VEHICLES MAY NOT BE USED BY ANY DRIVER TO TRANSPORT STUDENTS OUT OF THE STATE OF NEVADA WITH THE EXCEPTION OF THE LAKE TAHOE BASIN, TO INCLUDE THE TRUCKEE/DONNER PASS AREAS, EXCEPT TO TRANSPORT THE DRIVER S OWN CHILDREN. DRIVER S NAME: SCHOOL/DEPT: THE DOCUMENTS LISTED BELOW ARE REQUIRED TO PROCESS THIS APPLICATION: DISTRICT EMPLOYEES: (Please check if this application is for a district employee) 1. A current copy of your WCSD Identification card. 2. A printout of your 10 year Nevada DMV record provided from a state DMV office, requested within the last 30 days. (Please note: only one 10 year DMV printout is required per school year. A violation code of 400 and above will result in an automatic denial. If you have not had a license in NV for 10 years, a copy of the previous state s 10 year driving record and your 10 year NV DMV record must be attached.) 3. IF YOU WILL DRIVE A PRIVATELY OWNED VEHICLE: A printout of your current auto insurance declaration page including liability limits. (Limits below $100,000/300,000 will be denied). 4. IF YOU WILL DRIVE A DISTRICT VEHICLE: A copy of your WCSD issued Defensive Driving Certificate. VOLUNTEERS: (Please check if this application is for a Volunteer) 1. A printout of your 10 year Nevada DMV record provided from a state DMV office, requested within the last 30 days. (Please note: only one 10 year DMV printout is required per school year. A violation code of 400 or above will results in automatic denial. If you have not had a license in NV for 10 years, a copy of the previous state s 10 year driving record and your 10 year NV DMV record must be attached.) 2. IF YOU WILL DRIVE A PRIVATELY OWNED VEHICLE: A printout of your current auto insurance declaration page with liability limits. (Limits below $100,000/300,000 will be denied). 3. A copy of your approved volunteer application, to include background check/fingerprinting. I certify that the information provided is current and correct to the best of my knowledge. I also understand that this approval, if granted, will expire at the end of the current school year or the date of expiration for the attached insurance declaration or driver s license, whichever expires first. SIGNATURE OF DRIVER: DATE: ADMINISTRATOR S CERTIFICATION PLEASE MARK ONE OR BOTH OF THE FOLLOWING STATEMENTS AS APPROPRIATE: ( ) I certify that this volunteer is approved, by me, to use a private vehicle to transport students for trips within the state of Nevada, Lake Tahoe Basin and Truckee area. ( ) I certify that this district employee is approved, by me, to transport students in a District vehicle within the parameters of the Transportation Department or leased/rental vehicles or private vehicles for trips as needed. ADMINISTRATOR S SIGNATURE: DATE: TRANSPORTATION USE ONLY BELOW THIS LINE DATE RECEIVED: EXPIRATION DATE: 86

171 INSURANCE EXP.: NVDL EXP.: REQUEST IS: APPROVED: DENIED: REASON: v2, 7/01/2015 DIRECTOR OF TRANSPORTATION: 87

172 ISO REFERENCES Procedure: N/A Regulation: N/A Policy: N/A WASHOE COUNTY SCHOOL DISTRICT TRANSPORTATION Process: TripTracker Billing FROM: TRAN702-C TT Charge Reversal Process Reference: TRAN702 Map Reference: TRAN.MAP702 Version 1.1 Created/Revised: 09/21/2015 FROM: TRAN701-A Field Trip Assignment EXCURSION MGR/ EXCURSION TECH Verifies & enters driver trip sheet report mileage & hours information into TripTracker TRIPTRACKER Forwards notification to School/ Agency Rep verifying that stated trip has been invoiced SCHOOL/AGENCY REP Prints invoice from TripTracker TO: TRANSUB702-B Billing Athletics FROM: TRAN702-A Collections TRIPTRACKER Forwards notification to School/ Agency Rep that invoice is paid/ closed. EXCURSION MGR/ EXCURSION TECH/ ACCOUNT TECH Enters payment information into TripTracker; files paperwork SCHOOL/AGENCY REP Sends copy of budget transfer to Excursions Department YES SCHOOL/ AGENCY REP Submits budget transfer to business # NO SCHOOL/ AGENCY REP Forwards payment by check to Excursion Department ACCOUNT TECH Reconciles BuisnessPLUS budget transfer reports to TripTracker monthly YES NO ACCOUNT TECH Forwards to School/ Agency Rep notifying of 30 days past due from original date of invoice YES EXCURSION MGR/ EXCURSION TECH/ ACCOUNT TECH Enters payment information into TripTracker END YES TO: TRANSUB702-A Collections NO SCHOOL/ AGENCY REP Submits budget transfer to business # NO SCHOOL/ AGENCY REP Forwards payment by check to Transportation Department TRIPTRACKER Forwards notification to School/ Agency Rep that invoice is paid/closed WCSD Approval Project Team: Tonya Gunter, Christina Call, Margo Medeiros, Teresa Theiss, Ali Tognoni Owner: Margo Medieros, Asst. Dir. Approved by: Rick Martin, Director Date: END ACCOUNT TECH Reconciles BuisnessPLUS budget transfer reports to TripTracker monthly 88 ACCOUNT TECH Removes deposit transmittal from safe/ Verifies totals and submits weekly A/R F-001 to Business Office for deposit into Budget # EXCURSION MGR/ EXCURSION TECH Completes A/R F-001 (deposit transmittal) and places in safe

173 ISO REFERENCES Procedure: N/A Regulation: N/A Policy: N/A WASHOE COUNTY SCHOOL DISTRICT TRANSPORTATION Sub Process: Collections Process Reference: TRANSUB702-A Map Reference: TRANSUB.MAP702-A Version 1.1 Created/Revised: FROM: TRAN702 Triptracker Billing TRANS ACCOUNT TECH Forwards invoice to School or Agency Rep/ s Business Rep, school Principal & Area Supt of notice of 45 days past due notice of non payment SCHOOL /AGENCY REP Forwards payment to Excursion Department No TRANS ACCOUNT TECH Forwards invoice to School or Agency Rep/ s Business Rep, school Principal & Area Supt of notice of 60 days past due notice of non payment EXCURSION MGR/ EXCURSION TECH Suspends transportation requests (as per Trans Director) until balance paid in full Yes No Yes TO: TRAN702 Triptracker Billing TRANS ACCOUNT TECH Forwards invoice to School or Agency Rep/ s Business Rep, school Principal & Area Supt of notice of 90 days past due notice of non payment SCHOOL/ AGENCY REP Forwards payment to Excursion Department Yes TO: TRAN702 Triptracker Billing No No TRANSPORTATION DIRECTOR Meets w/area Supt to determine future transportation arrangments WCSD Approval Project Team: Tonya Gunter, Margo Medeiros, Theresa Theiss, Christina Call, Ali Tognoni End ACCOUNT TECH Forwards Triptracker Charge off Report monthly to Trans Director, Asst Dir, & Project Mgr EXCURSION MGR/TECH Notifies Business Office of credit memo to Triptracker to clear account negative balance EXCURSION MGR/TECH Notates in Triptracker management approval for charge off/makes journal entry adjustment as needed to clear deficit Yes EXCURSION MGR/TECH Receives approval from Trans Director for charge off Owner: Margo Medieros, Asst. Dir. Approved by: Rick Martin, Director Date:

174 ISO REFERENCES Procedure: N/A Regulation: N/A Policy: N/A WASHOE COUNTY SCHOOL DISTRICT TRANSPORTATION Sub Process: TripTracker Charge Reversal Process Reference: TRANSUB702-C Map Reference: TRANSUB.MAP702-C Version 1.1 Created/Revised: FROM: TRAN702 TripTracker Billing DRIVER Submits completed driver trip sheet report to FSS within 24 hours of completed trip FSS Verifies driver trip sheet report; scans daily to shared J: drive; forwards original to Excursion s Department EXCURSION MGR/TECH Verifies & enters driver trip sheet report mileage & hour information into TripTracker TRIPTRACKER Forwards notification to School/ Agency Rep verifying that stated trip has been invoiced SCHOOL/AGENCY REP Reviews invoice from Triptracker; contacts Excursion Mgr/Excursion Tech via /phone to dispute charges due to transportation error EXCURSION MGR/ EXCURSION TECH Reviews dispute request; Verifies driver trip sheet report mileage & hour information To: TRAN702 TripTracker Billing No EXCURSION MGR Determines if trip is subject to discount due to transportation error Yes EXCURSION MGR/ TECH Verifies & enters approved request/ Inputs information into TripTracker Yes TRANS DIRECTOR Reviews request; approves; notifies Excursion Mgr. EXCURSION MGR Submits written request to transportation director for trip balance adjustment WCSD Approval Project Team: Tonya Gunter, Margo Medeiros, Theresa Theiss, Christina Call, Cindy Vance, Gail Carson Owner: Margo Medieros, Asst. Dir. TRIPTRACKER Forwards notification to School/ Agency Rep verifying that stated trip has been invoiced No To: TRAN702 TripTracker Billing Approved by: Rick Martin, Director Date: 10/7/

175 ISO REFERENCES Procedure: N/A Regulation: N/A Policy: N/A WASHOE COUNTY SCHOOL DISTRICT TRANSPORTATION Process: Triptracker Billing - Athletics Process Reference: TRAN702-B Map Reference: TRAN.MAP702-B Version 1.1 Created/Revised: 05/15/2015 FROM: TRAN702 TripTracker Billing EXCURSION MGR/ EXCURSION TECH Verifies & enters driver trip sheet report mileage & hours information into TripTracker ACCOUNT TECH Prints invoice listing from TripTracker monthly ACCOUNT TECH Submits budget transfer request to business # BUSINESS OFFICE Verifies budget transfer request; transfers funds to account ; Notifies Account Tech ACCOUNT TECH Submits completed budget transfer request to Excursion Manager/Excursion Tech EXCURSION MGR/ EXCURSION TECH/ ACCOUNT TECH Enters payment information into TripTracker; files paperwork in Excursions Office ACCOUNT TECH Reconciles BuisnessPLUS budget transfer reports to Triptracker monthly ACCOUNT TECH Forwards TripTracker/Bplus Athletics Reconciliation Report monthly to Trans Director, Asst Dir, & Project Mgr WCSD Approval Project Team: Tonya Gunter, Christina Call, Margo Medeiros, Teresa Theiss, Ali Tognoni END Owner: Margo Medieros, Asst Dir. Approved by: Rick Martin, Director Date: 10/7/

176 92 APPENDIX E WASHOE COUNTY SCHOOL DISTRICT STUDENT ACTIVITIES 425 E NINTH STREET, RENO, NV (775) FAX (775) Brian Rothe, Coordinator Nasyeli Centeno, Administrative Assistant Audit of Transportation Department - Has the District Effectively Managed Athletic Transportation Fees? See response comments below and attachments. L3:o,:e.~02~ St udent Activities & Athletics RECOMMENDATIONS: 23. Require all high schools submit all athletic transportation fees collected to the business office for deposit to the general fund, including prior years' fee collected. ACCEPT. /DO NOT ACCEPT. RESPONSE: Procedures are in place for athletic t ransportat ion fee collection. See attached. TIMELI NE FOR IMPLEMENTATION: Currently implemented. 25. Reconcile total student athletes to fees deposited. ACCEPT. /DO NOT ACCEPT. RESPONSE: Reconciliation of total student athletic fees fall under the responsibility of t he individual school's athletic program. The balance of students participating with money collected is reflective of students who may be classified Free/Reduced lunch or with other financial hardships, sites athlet ic department are to make up difference. TIMELINE FOR IMPLEMENTATION: Currently Implemented.

177 Athletic Fees & Procedures Student Athletic Transportation & Impact Fee Process 1. At the school: a. High School Each student desiring to participate in a school sports signs up for that sport and pays a $35 transportation and $5 impact fee per SY. Each student submits fees to the school. The athletic secretary maintains an itemized list of students selected for teams and submits the list of names to the school bookkeeper and the Student Activities & Athletics Office. Any student participating in Golf must also pay a $50 golf participation fee. The bookkeeper remits the $5 impact fee, $50 golf fee and the $35 transportation fee to the District Business Office with the amount equaling the total number of athlete participants. (Unless student athlete was granted a waiver in which case, it must be noted on the itemized list) 2. At the Business Office: a. Deposits are processed to the appropriate accounts. b. Payments are logged on a spreadsheet by school and by season. APPENDIX E c. Spreadsheet is sent to the Student Activities & Athletics office (Ellie), the Deputy Superintendent s Office and the Chief Financial Officer for review and needed follow-up after each seasonal due date. Due dates are 10/1 for fall sports, 12/1 for winter sports and 3/1 for spring sports. 3. At the Student Activities & Athletics Office: a. Due Dates for HS impact and transportation fees are as follows: Due dates are 10/1 for fall sports, 12/1 for winter sports and 3/1 for spring sports. b. Golf fees will be collected along with impact and transportation fees in the fall and spring sport seasons. Girls Golf: due date 10/1 Boys Golf: due date 3/1 c. An notice/reminder requesting an itemized list of fees will be sent 30 days prior to the due dates to the following School admin and support staff: Bookkeeper Athletic Secretary or School Secretary Athletic Director School Principal d. The Student Activities & Athletics office will follow up with schools who have not submitted their fees on or before the due dates. Centeno-Ochoa, Nasyeli WASHOE COUNTY SCHOOL DISTRICT 06/10/

178 Athletic Fees & Procedures Student Athletic Transportation & Impact Fee Process 1. At the school: a. Middle School Each student desiring to participate in school sports signs up for that sport and pays a $5 transportation fee per school year. Each student submits fees to the school. The school secretary maintains an itemized list of students selected for teams and submits the list of names to the Student Activities & Athletics Office. The secretary remits the $5 transportation fee to the District Business Office with the amount equaling the total number of athlete participants. (Unless student athlete was granted a waiver in which case, it must be noted on the itemized list). 2. At the Business Office: a. Deposits are processed to the appropriate accounts. b. Payments are logged on a spreadsheet by school and by season. APPENDIX E c. Spreadsheet is sent to the Student Activities & Athletics office (Ellie), the Deputy Superintendent s Office and the Chief Financial Officer for review and needed follow-up after each seasonal due date. Due dates are 10/1 for fall sports, 12/1 for winter sports and 3/1 for spring sports. 3. At the Student Activities & Athletics Office: a. Due Dates for MS transportation fees are as follows: Due dates are 10/1 for fall sports, 12/1 for winter sports and 3/1 for spring sports. b. An notice/reminder requesting an itemized list of fees will be sent 30 days prior to the due dates to the following School admin and support staff: Bookkeeper Athletic Secretary or School Secretary Athletic Director School Principal c. The Student Activities & Athletics office will follow up with schools who have not submitted their fees on or before the due dates. Centeno-Ochoa, Nasyeli WASHOE COUNTY SCHOOL DISTRICT 06/10/

179 95 Athletic Transportation, Impact Fees and Golf Fees FY APPENDIX E TRANS FEES IMPACT FEES GOLF FEES ADDITONAL FEES School FALL by 9/15 Damonte Ranch $11, DP $1, DP Galena $12, DP $1, DP $ DP Hug $8, DP $1, DP Incline $4, DP $ DP $ DP McQueen $14, DP $2, DP $ DP North Valleys $12, DP $1, DP $ DP Reed $13, DP $1, DP Reno $12, DP $1, DP $ DP Spanish Springs $14, DP $2, DP $ DP Sparks Wooster $9, DP $1, DP $ DP Govt Trans for spring FY15 Billinghurst Depoali MS Incline MS Pine MS Swope MS Vaughn MS $ DP $ DP $ DP $95.00 DP $ DP $ DP School WINTER by 12/15 TRANS FEES IMPACT FEES GOLF FEES ADDITONAL FEES Damonte Ranch Galena Hug Incline McQueen North Valleys Reed Reno Spanish Springs Sparks Wooster School SPRING by 3/15 TRANS FEES IMPACT FEES GOLF FEES ADDITONAL FEES Damonte Ranch Galena Hug Incline McQueen North Valleys Reed Reno Spanish Springs Sparks Wooster

180 APPENDIX F TIMETABLE FOR IMPLEMENTING AUDIT RECOMMENDATIONS The Internal Audit Department categorized the recommendations contained within this report into implementation time frames of six months or less and greater than six months. The District should begin taking steps to implement the recommendations as soon as possible. The District s target completion dates are incorporated from Appendices D and E. RECOMMENDATIONS WITH IMPLEMENTATION DATES OF SIX MONTHS OR LESS RECOMMENDATION 1. Create and implement a policy: a. Requiring employees fuel district-owned vehicles at district or other government sites. b. Defining specific circumstances when alternative gas stations would be acceptable. TIME FRAME April Require employees use district-owned vehicles when available. N/A Not Accepted 3. Require employees provide documentation that no cars were available when requesting reimbursement. N/A Not Accepted 4. Create a policy establishing employees using personal vehicles will not be eligible for reimbursement or will only receive half the reimbursement per NRS N/A Not Accepted 5. Eliminate take-home vehicles. N/A Not Accepted 6. Assign vehicles to better serve district needs (i.e. motor pool, bond vehicle). April Create and implement policy and procedures specific to when takehome vehicle usage is appropriate (i.e. school police and on-call January

181 positions). 8. Reevaluate and update policies and procedures to ensure utilization requirements are appropriate. Completed 9. Monitor white fleet usage and reassign vehicles to departments/motor pools where utilization requirements will be met, or Completed 10. Reduce the white fleet accordingly. 11. Create a policy requiring all employees who might use a districtowned vehicle take the district s defensive driving class. September 2015* 12. Require employees who currently drive district-owned vehicles, but have not completed the defensive driving class, take the course. July 1, 2015* 13. Obtain proof of course completion prior to issuance of a driver ID/PIN. April Separate collection duties by: a. Designating an individual (excursion technician) to receive and restrictively endorse checks when received. b. Designating a second individual (excursion manager) to verify the check amount and safeguard funds until sent to the business office for deposit. May Properly safeguard checks by: a. Depositing checks when received, or b. Purchasing a key/combo safe: i. Require involvement of two individuals to access the safe (e.g. provide key to the excursion manager and backup and combination to the excursion technician and backup). ii. Maintain checks in safe until deposited with the business office (at least once a week), ensuring funds are not left over the weekend. May Reconcile BusinessPLUS transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. May

182 17. Pursue payment collection as documented in the Triptracker Billing Process Map for schools. May 19, Create and implement a documented billing and collection process for programs. July 1, Create and implement written procedures for write-offs to include: a. Documenting management approvals, b. Segregation of duties, c. Reducing balances appropriately, and d. Reviewing Triptracker reports reflecting write-offs, by management. September 1, Update and maintain contact information to include school and administrator addresses. 21. Increase athletic transportation fees: a. Charge high school athletes a $75-80 fee per sport or $95 fee per year. b. Charge middle school athletes a $10 fee per year. Completed July 1, 2015** 22. Analyze expenses and recalculate fees periodically (bi-annually) to encompass all athletic transportation expenses. 23. Require all high schools submit all athletic transportation fees collected to the business office for deposit to the general fund, including prior years fee collected. July 1, 2015 Completed*** 24. Disallow exemption of fees for any school using district transportation during regular season athletics. July 1, Reconcile total student athletes to fees deposited. Completed*** 26. Reconcile BusinessPLUS budget transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. July 1, Create written procedures for athletic trip billing and reconciliation. July 1, 2015 * The timeline provided is in reference to action taken that does not address audit recommendations. ** Did not accept audit recommendation, but provided a timeline for alternative action taken. *** Per responses received from Student Activities and Athletics the recommendation has been implemented. 98

183 Follow-Up of the November 2015 Transportation Department White Fleet and School Bus Services Audit June 28, 2018 Audit Committee

184 Report Highlights Potential Cost Savings Cost Savings Fuel at District or Government Sites $ 12,000 Create Mileage Reimbursement Policy Unknown Eliminate Take-Home Vehicles 23,000 Increase High School Athletic Transportation Fees 500,000 Charge Middle School Athletic Transportation Fees 42,000 Collect Athletic Transportation Fees 190,000 81,000 Totals $190,000 $658,000

185 AUDIT OBJECTIVES 1. Can The District Reduce Its White Fleet Costs? 2. Can The District Use Its White Fleet More Efficiently? 3. Can The Transportation Department Improve Internal Controls Over Collection Of Trip Payments? 4. Has The District Effectively Managed Athletic Transportation Fees?

186 IMPLEMENTATION STATUS OF THE 27 RECOMMENDATIONS 6 Not Implemented 7 Partially Implemented 14 Fully Implemented

187 OBJECTIVE 1: CAN THE DISTRICT REDUCE ITS WHITE FLEET COSTS? 1. Create and implement a policy: a. Requiring employees fuel district-owned vehicles at district or other government sites. b. Defining specific circumstances when alternative gas stations would be acceptable. 2. Require employees use district-owned vehicles when available. 3. Require employees provide documentation that no cars were available when requesting reimbursement.

188 OBJECTIVE 1: CAN THE DISTRICT REDUCE ITS WHITE FLEET COSTS? 4. Create a policy establishing employees using personal vehicles will not be eligible for reimbursement or will only receive half the reimbursement per NRS Eliminate take-home vehicles. 6. Assign vehicles to better serve district needs (i.e. motor pool, bond vehicle). 7. Create and implement policy and procedures specific to when take-home vehicle usage is appropriate (i.e. school police and on-call positions).

189 OBJECTIVE 2: CAN THE DISTRICT USE ITS WHITE FLEET MORE EFFICIENTLY? 8. Reevaluate and update policies and procedures to ensure utilization requirements are appropriate. 9. Monitor white fleet usage and reassign vehicles to departments/motor pools where utilization requirements will be met, or 10.Reduce the white fleet accordingly.

190 OBJECTIVE 2: CAN THE DISTRICT USE ITS WHITE FLEET MORE EFFICIENTLY? 11. Create a policy requiring all employees who might use a district-owned vehicle take the district s defensive driving class. 12.Require employees who currently drive district-owned vehicles, but have not completed the defensive driving class, take the course. 13.Obtain proof of course completion prior to issuance of a driver ID/PIN.

191 OBJECTIVE 3: CAN THE DEPARTMENT IMPROVE INTERNAL CONTROLS OVER COLLECTION OF TRIP PAYMENTS? 14.Separate collection duties by: a) Designating an individual (excursion technician) to receive and restrictively endorse checks when received. b) Designating a second individual (excursion manager) to verify the check amount and safeguard funds until sent to the business office for deposit.

192 OBJECTIVE 3: CAN THE DEPARTMENT IMPROVE INTERNAL CONTROLS OVER COLLECTION OF TRIP PAYMENTS? 15.Properly safeguard checks by: a) Depositing checks when received, or b) Purchasing a key/combo safe: i. Require involvement of two individuals to access the safe (i.e. provide key to the excursion manager and backup and combination to the excursion technician and backup). ii. Maintain checks in safe until deposited with the business office (at least once a week), ensuring funds are not left over the weekend.

193 OBJECTIVE 3: CAN THE DEPARTMENT IMPROVE INTERNAL CONTROLS OVER COLLECTION OF TRIP PAYMENTS? 16.Reconcile BusinessPLUS reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. 17. Pursue payment collection as documented in the Triptracker trip billing process map for schools. 18. Create and implement a documented billing and collection process for programs.

194 OBJECTIVE 3: CAN THE DEPARTMENT IMPROVE INTERNAL CONTROLS OVER COLLECTION OF TRIP PAYMENTS? 19.Create and implement written procedures for write-offs to include: a. Documenting management approvals, b. Segregation of duties, c. Reducing balances appropriately, and d. Reviewing Triptracker reports reflecting writeoffs, by management. 20.Update and maintain contact information to include school and administrator addresses.

195 OBJECTIVE 4: HAS THE DISTRICT EFFECTIVELY MANAGED ATHLETIC TRANSPORTATION FEES? 21.Increase athletic transportation fees: a. Charge high school athletes a $75-80 fee per sport or $95 fee per year. b. Charge middle school athletes a $10 fee per year. 22.Analyze expenses and recalculate fees periodically (bi-annually) to encompass all athletic transportation expenses.

196 OBJECTIVE 4: HAS THE DISTRICT EFFECTIVELY MANAGED ATHLETIC TRANSPORTATION FEES? 23.Require all high schools submit all athletic transportation fees collected to the business office for deposit in to the general fund, including prior years fee collected. 24.Disallow exemption of fees for any school using District transportation during regular season athletics. 25.Reconcile total student athletes to fees deposited.tudent athletes to fees deposited.

197 OBJECTIVE 4: HAS THE DISTRICT EFFECTIVELY MANAGED ATHLETIC TRANSPORTATION FEES? 26.Reconcile BusinessPLUS budget transfer reports to Triptracker monthly. a. Input transfers to accurately reflect account balances. 27.Create written procedures for athletic trip billing and reconciliation.student athletes to fees deposited.

198 Questions Thank you!

199 INTERNAL AUDIT DEPARTMENT ANNUAL FOLLOW-UP OF THE NOVEMBER 2011 INTERNAL CONTROLS OVER PAYROLL AUDIT JUNE 28, 2018 The Internal Audit Department, within six months after the Audit Committee releases the final audit report, and annually thereafter until all recommendations are implemented, shall evaluate the steps the department has taken to implement the recommendations and shall determine whether the steps are achieving the desired results. The chief auditor shall report the follow-up results to the committee and department officials. To prepare this report, we met with department staff, reviewed department assessments of audit status, and reviewed documentation provided by departments. The Internal Audit Department would like to thank the Office of Business and Financial Services for their assistance in compiling this report. Of the twenty-eight (28) recommendations issued: Twenty-four recommendations were fully implemented and one was considered no longer applicable. These have been removed from this report. IMPLEMENTATION STATUS OF OPEN RECOMMENDATIONS 1 Partially Implemented 2 Fully Implemented The following report contains the status of the recommendations and the follow-up performed by the Internal Audit Department. 1

200 INTERNAL AUDIT DEPARTMENT ANNUAL FOLLOW-UP OF THE NOVEMBER 2011 INTERNAL CONTROLS OVER PAYROLL AUDIT JUNE 28, Ensure the Payroll Department s access to functions is based on job descriptions and responsibilities by: b. Reviewing access listing periodically to ensure employees do not have incompatible functions and former employees have been removed. c. Initialing and dating access listing to document review. INITIAL MANAGEMENT RESPONSE ACCEPT We will request from IT a system generated report available to Business Office management that reports user names job titles and a system access listing. We will develop procedures to document the review process and frequency of review. MARCH 29, No change. This recommendation remains PARTIALLY IMPLEMENTED. ANNUAL FOLLOW-UP JUNE 28, 2018 The payroll manager continues to work with IT to simplify the current access listing report by requesting the report only include screens that allow for data entry that impacts pay, to include the names of screens and tables, and user rights. This recommendation remains partially implemented. 2

201 INTERNAL AUDIT DEPARTMENT ANNUAL FOLLOW-UP OF THE NOVEMBER 2011 INTERNAL CONTROLS OVER PAYROLL AUDIT JUNE 28, Immediately notify timekeepers/employees when corrections are made to timesheets. a. Send site the original timesheet from Timecard Online batch and the corrected prelist showing the error. b. Establish district policy to include procedures when supervisor has input and approved employees timesheets. INITIAL MANAGEMENT RESPONSE ACCEPT a. A process will be developed to formalize the process of documenting changes to time sheets and notifications of changes made to timekeepers. This process will include developing the most efficient way of reporting this information to the timekeeper and approver without the need to share all of the information contained on a Pre-list (Employee deductions that may include garnishments). b. We will establish district policies that address the processing of reporting errors by timekeepers such as overtime, additional time, use of items such as vacation and sick leave, etc., the steps necessary at the approver level to assure these changes are communicated to the employee, and the process for resubmitting the time that needs to be paid for unpaid items. MARCH 29, No change. This recommendation remains PARTIALLY IMPLEMENTED. ANNUAL FOLLOW-UP JUNE 28, 2018 The auditor reviewed a sample of payroll records and determined payroll technicians notify timekeepers when entries need to be changed on timecards (e.g., incorrect hour codes). Timekeepers submit approval by either correspondence or by submitting an amended timecard. The auditor reviewed the approved Site Payroll Processing Procedures that includes language on how payroll technicians communicate with sites when changes are made to timecards. This recommendation is considered fully implemented. 3

202 INTERNAL AUDIT DEPARTMENT ANNUAL FOLLOW-UP OF THE NOVEMBER 2011 INTERNAL CONTROLS OVER PAYROLL AUDIT JUNE 28, Use BusinessPLUS management reports to track garnishment totals by employee. INITIAL MANAGEMENT RESPONSE ACCEPT We will develop a system generated report to assist in more efficiently processing of Garnishments. MARCH 29, 2017 The Department is currently working with IT to build a working report to track garnishment totals by employee. This recommendation remains PARTIALLY IMPLEMENTED. ANNUAL FOLLOW-UP JUNE 28, 2018 The Department has created and is using a garnishment tracking report (PY1122). The auditor reviewed the report which tracks garnishment totals by employee from the payroll software (BusinessPLUS). This recommendation is considered fully implemented. 4

203 Washoe County School District Internal Audit Department Paula Ward, CPA, Chief Auditor Preliminary Audit Plan Fiscal Year 2019 The Internal Audit Department's mission is to provide independent analysis and specific recommendations to improve the operations of the Washoe County School District. New Audits Department Priority Area Preliminary Objectives Nutrition Services Financial Review of supporting documents to the financial statements provided by management company. Risk Management Human Resources Education Alliance Healthcare Sick Leave Bank Attestation Review of rising health care costs-- self-funded vs. fully funded. Process in place to ensure sick leave bank hours are available prior to approval Financial Statement review. The Internal Audit Department continuously collects information about risks facing the district from a variety of sources, including the Board of Trustees, district management, and the public, in addition to national and local events that could affect Washoe County School District Transportation High School High School High School Random Drug Testing Student Activity Funds Student Activity Funds Student Activity Funds Processes in place to ensure adequate random drug testing is performed timely, consistently, and without bias. Compliance with the Student Activity Fund Procedure Manual and district policy and regulations. Compliance with the Student Activity Fund Procedure Manual and district policy and regulations. Compliance with the Student Activity Fund Procedure Manual and district policy and regulations. The Chief Auditor assesses this information to identify value added audit topics. 9 Middle School Student Activity Funds 10 Elementary Student School Activity Funds Compliance with the Student Activity Fund Procedure Manual and district policy and regulations. Compliance with the Student Activity Fund Procedure Manual and district policy and regulations. These audit topics are prioritized based on risk, available resources, timing, and audit coverage, which are then included in this audit plan. Ongoing Audits 1 Department Priority Area Objectives Capital Projects Construction Construction Manager at Risk, Process Lifecycle, gaps in pre-construction activies and district's responsibilities. Carryover Audits 1 Department Priority Area Objectives Risk Workers' Comp Analysis of cost and injury trends to Management assess and mitigate risk. June 28, 2018 Audit Committee 2 Student Support Services WestEd Audit Follow-up Review of corrective action one year after put in place by Student Support Services.