Audit of. West Gate Elementary School s SACC Revenue Collection

Transcription

1 Audit of West Gate Elementary School s SACC Revenue Collection September 12, 2008 Report

2 Audit of West Gate Elementary School s SACC Revenue Collection Table of Contents Page PURPOSE AND AUTHORITY 1 SCOPE AND METHODOLOGY 1 BACKGROUND 2 CONCLUSIONS 2 1. $4,142 in SACC Fees Missing SACC Receipts Missing 3 3. Collections Not Deposited Timely 3 APPENDIX Management s Response 4

3 THE SCHOOL DISTRICT OF LUNG CHIU, CPA ARTHUR C. JOHNSON, Ph.D. PALM BEACH COUNTY, FLORIDA DISTRICT AUDITOR SUPERINTENDENT OFFICE OF THE DISTRICT AUDITOR 3346 FOREST HILL BLVD., B-302 WEST PALM BEACH, FL (561) FAX: (561) M E M O R A N D U M TO: FROM: Honorable Chair and Members of the School Board Arthur C. Johnson, Ph.D., Superintendent of Schools Chair and Members of Audit Committee Lung Chiu, CPA, District Auditor DATE: September 12, 2008 SUBJECT: Audit of West Gate Elementary School s SACC Revenue Collection PURPOSE AND AUTHORITY In response to the Principal s request, we have audited West Gate Elementary School s School Age Child Care (SACC) Revenue Collection for July 1, 2006, through January 18, The primary objective of the audit was to determine whether all revenues were properly accounted for in the school s Internal Accounts. SCOPE AND METHODOLOGY The audit was performed in accordance with Generally Accepted Government Auditing Standards by Toni Waterman, CPA, during January 28 through February 20, 2008, and included: Reviewing SACC Kids Care database Reviewing SACC Receipts and Monies Collected Reports (MCRs) Reviewing General Ledger Interviewing School and District staff Draft findings were sent to the school for review and comments. Management response is included in the Appendix. We appreciate the courtesy and cooperation extended to us by school staff during the audit. The final draft report was presented to the Audit Committee at its September 12, 2008, meeting. 1

4 BACKGROUND The principal requested an audit of the school s SACC program on January 14, 2008, after the Department of After School Programming identified a potential mishandling of $1,200 in SACC revenues during a routine program review. Due to the nature of irregularity identified by this audit, the audit conclusions were referred to School Police Department and Employee Relations Department on March 26, 2008, for further review. School Police completed its investigation on May 28, 2008, and the results were forwarded to Employees Relations. On July 16, 2008, Employee Relations Department completed its investigation and the conclusions were referred back to the school principal for necessary actions. CONCLUSIONS 1. $4,142 in SACC Fees Missing At West Gate Elementary, hand-written receipts were issued by several SACC employees for fee collections. The original white copy of the receipt was given to the parent, and the yellow copy was attached to the Monies Collected Report (MCR) and was given to the bookkeeper together with the monies collected. The assistant SACC director then recorded the SACC receipts into the KidsCare database which generated a Cash Received Detail Report, and the report was attached to the MCR for documentation. We compared the manual SACC receipts to the KidsCare database and the school s Internal Accounts General Ledger for July 1, 2006, through January 18, We concluded that a total of $4,142 in SACC fees was missing. Specifically, some receipts were not entered into the KidsCare database; some receipts had no deposit records; and some receipts were marked as void but the original white copies were not retained. The following exhibit provides details for the irregularities. SACC Revenues Unaccounted For Observation July 1, June 30, 2007 Manual receipts issued for fees collected but no deposit records, and no collection records were found in KidsCare database. Receipts voided but the original receipts were missing; i.e. receipts might have been issued after collection. Receipted in KidsCare, but no deposit records. Amount deposited less than receipt amount. Consequence of Irregularities Fees Collected By Assistant SACC Director Other Staff Members Total Discrepancies Monies Missing $1, $ $1, Receipts voided in order to balance the missing monies Monies Missing Monies Missing

5 Observation July 1, January 18, 2008 Manual receipts issued for fees collected but no deposit records, and no collection records were found in KidsCare database. Consequence of Irregularities Fees Collected By Assistant SACC Director Other Staff Members Total Discrepancies Monies Missing 1, , Total $3, $ $4, Missing Management s Response: I concur with the finding. As soon as the irregularities were noted by the SACC Director, procedures were changed whereby the SACC Director is the only one handling the monies collected, making deposits daily and entering the data in KIDCARE. (Please see page 5.) SACC Receipts Missing During July 1, 2006, and January 18, 2008, a total of six SACC Receipt Books were missing and not listed on the Prenumbered Document Inventory Register. Of the 150 receipts included in these six missing receipt books, 128 receipts and the monies collected were attached to various MCRs for deposits; however, the remaining 22 receipts were missing. Consequently, we were not able to ascertain if the 22 missing receipts were actually issued for monies collections and the dollar amount involved, if any. Page 3-14, SACC Operations Manual states that the SACC director is responsible for receipt books issued to them by the document custodian and, therefore, must sign for all receipt books on the Prenumbered Document Inventory Register. Receipt books should be used in the sequential order. Management s Response: I concur with the finding. In January 2007, the SACC Director took control of the receipt books and is following all of SACC best practices as stated in the Operations Manual. (Please see page 5.) 3. Collections Not Deposited Timely During July 1, 2006, through January 18, 2008, 311 receipts totaling $28, were not deposited timely into the Internal Accounts. Delays ranged from six to 67 business days from the date of collection. Time Period Number of Receipts Range for Delay Amount July 1, 2006 June 30, to 67 days $21, July 1, 2007 January 18, to 31 days $6, Total 311 $28,

6 In accordance with DOE Rules (Department of Education s Financial and Program Cost Accounting and Reporting for Florida Schools, Chapter 7), monies collected should be adequately supported and turned in daily to the bookkeeper or the drop safe, and be deposited within five business days. Delay in turning in monies for deposit could put staff at risk and increase the chance of irregularity. Management s Response: I concur with the finding. SACC Monies collected are been turned in daily to the bookkeeper or placed in the drop safe, and are been deposited within 5 business days. (Please see page 5.) End of Report 4

7 Appendix Management s Response 5