June 30, 2012 Management Response

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1 APOPKA MIDDLE SCHOOL Five (5) of the nine exceptions require additional attention. June 30, 2012 Audit Comment June 30, 2012 Management Response Follow Up Results 1. The following bank deposits were not deposited timely in the drop safe. School Board policy requires that all collections must be deposited within a drop safe or the depository the same day of collection. Bookkeeper needs to utilize an uninterrupted time frame every day to do the deposit & drop it into the safe. Exception: Two deposits from staff members were delayed to the bookkeeper. In addition no machine tapes were prepared for broken batches of subsidiary receipts for collections, nor were individual receipts issued for collections. 2. The Memory Book contract was not signed by the principal. All contracts are required to be completed and approved by the principal prior to inception. Contracts need to be finalized by being sent to Principal for final approval and signature prior to Bookkeeper for filing. The principal signed the book fair contracts in advance of the activity. 3. The monthly financial reporting package for September 2011 was not completed in a timely manner. Complete reporting packages that include all required school documents must be completed, approved and submitted to the District Office prior to the end of the following month. Reconciliation needs to be attended quickly after receipt of statement. This way, if there are discrepancies, ELC will have time to respond with requested help & bookkeeper will have time to finalize reporting packages in required time frame. Exception: Two monthly reports were submitted after the 20 th of the following month. 4. Monies collected from outside the main office were not turned in to the school bookkeeper by the following day for several collections. All external collections should be turned in to the bookkeeper by the following day, regardless of amount. Teachers / Staff Member who were issued sub-receipt book must hand money, sub-receipts and monies collected form to Bookkeeper or drop it in the safe within 24hrs of receipt of money. Exception: Two deposits from staff members were delayed to the bookkeeper. In addition no machine tapes were prepared for broken batches of subsidiary receipts for collections, nor were individual receipts issued for collections.

2 APOPKA MIDDLE SCHOOL 5. Assignment and accountability records were not completed. All subsidiary receipts need to be accounted for on an assignment and accountability record and inventoried at yearend. Any missing receipts should have an explanation attached and include The principal's signature. Log will be maintained & updated at the moment a book is checked out or in. Exception: The required Assignment and Accountability Records Form for subsidiary receipts is not being used. Subsidiary receipts used for one collection were not filed with subsidiary receipts. 6. A request for fund raising activity form was not approved for the Band, Chorus or Plant sale fund raisers. In addition, a sales report was not completed for the Band, Valentine's Day, and Plant Sale fund raisers. A request for fund raising activity form should be prepared for all fund raising activities conducted by the school and must be approved by the principal prior to making any commitments. A sales report is required for each sales activity conducted and must be signed by the principal. Fundraiser forms, submitted to Fundraiser AP in charge of scheduling, need to be followed up by Fundraiser Coordinator to ensure dates and signatures are completed prior to their event. Once fundraiser is completed, Fundraiser Coordinator needs to follow up in a short amount of time (suggested-1wk) with Sales Report to principal for signature and then to Bookkeeper for filing. Fund Raising Activity Request Form were prepared by the faculty sponsor and approved by the principal. Sales Reports were signed by the principal, bookkeeper and sponsor. 7. Ticket sales reports were not completed for any of the Athletic admission events. A ticket sales report, indicating the color and numerical sequence of tickets sold and the official receipt number, must be completed for each admission event and be signed by the ticket manager and the bookkeeper. There were no ticket inventory reports for the athletic tickets. All tickets must be accounted for on a ticket inventory report. Upon receipt of new ticket rolls each year-ticket Inventory Report will be immediately created. Once Athletic event is over, Athletic Coordinator will follow up in a short amount of time (suggested-1wk) with Ticket Sales report to principal for signature and then to Bookkeeper for filing. Exception: Ticket Inventory report was prepared incorrectly. Three different colors and prices of tickets were included on the same ticket inventory. There was no record of acquisition for tickets sold for $1.00. Three sales reports were incorrect and five collections were delayed to the bookkeeper.

3 APOPKA MIDDLE SCHOOL 8. The following check was not supported by a vendor invoice or receipt. Vendor invoices and vendor receipts should be retained in the internal account records for auditing purposes. Memory Book company will not be paid as the money comes in throughout the year; they will be paid in one lump sum at the end of the year-thus equaling original invoice for the first of the year. Financial Summary statements were received from the vendor for book fair and from Lifetouch for pictures. 9. The School Board Procurement Services Policy was not followed for the purchase of uniforms, cookie dough, and the Georgia fieldtrip. Three quotes must be obtained for all expenditures over $5,000 and three bids must be obtained for all expenditures over $25,000. When product or service is requested that exceeds $5,000, PO requestor will be sure to either use a bid list vendor or get three quotes prior to submitting PO for approval & processing. Taxes were paid on a hotel bill. Prior year accounts payable were not indicated on July 2012 monthly reported. One payment did not agree with invoice; however the difference was paid by staff. No purchase was made for over quote requirements.

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9 AVALON MIDDLE SCHOOL FOLLOW-UP REPORT Seven (7) of the eleven (11) exceptions indicated improvement. Three (3) additional exceptions were noted. June 30, 2012 Audit Comment Audit Comment 1: The fall picture contract and yearbook contract were not signed by the principal. Audit Comment 2: Fall picture commissions were posted to the Principal s Discretionary account. June 30, 2012 Management Response Picture contract signed by Assistant Principal not Principal. Principal will sign all contracts. Contracts were located after auditor left. Picture commissions need to go into the picture commission account. Error made by Bookkeeper for fall commission. Spring commission went into correct account. Follow Up Results The picture, yearbook and book fair contracts that we reviewed were signed by the Principal. Picture commission totaling $2, was posted to the Picture Commission account #7456 on 12/14/2012. Audit Comment 3: Monies collected from outside the main office were not turned in to the school bookkeeper by the following day for certain collections. Audit Comment 4: An official receipt did not have any supporting documentation for a donation received that was posted to the Principal s Discretionary account. Teachers will receive a memo of not following directions that they will sign. Principal and Bookkeeper need to ask person making donation to give a letter stating what the donation is for. We reviewed the supporting documentation for ten (10) official receipts totaling $14, within the August, 2012 through February, 2013 time period. Exception: Our review found 3 receipts totaling $5,508 that were not turned in to the school bookkeeper by the following day. Our review of the Principal s Discretionary account ledger disclosed no such exceptions for receipts reviewed during this interim review.

10 Audit Comment 5: An assignment and accountability record did not indicate receipts on hand or receipts missing at year end. In addition, assignment and accountability records were not signed by the preparer. Audit Comment 6: A request for fund raising activity form was not approved for the Fellowship of Christian Athletes candy gram fundraiser or the Encore fundraiser. In addition, a sales report was not completed for these fundraisers or for the yearbook sales. Audit Comment 7: A ticket sales report was not signed by the bookkeeper for the December 3, 2011 volleyball game. Audit Comment 8: There were no ticket inventory reports for tickets. Audit Comment 9: Several requisition and purchase order forms were not dated by the principal. Make sure Bookkeeper is using correct report. Bookkeeper will sign record report. To announce to everyone wanting to do a fundraiser that they must first complete a fundraiser form and have it approved prior to starting a fundraiser. After the fundraiser is complete they must complete a sales report form. The Bookkeeper will make sure all ticket sales reports are signed by the Manager and the Bookkeeper. Bookkeeper needs to make sure she completes a ticket inventory report. The Bookkeeper will make sure when the Principal signs the purchase order that she did not Exception: Assignment and Accountability records for all subsidiary receipts on campus are not being maintained. The school is maintaining a sign out log for subsidiary receipt books. Our limited review found fund raising approval forms and sales reports completed or are in the process of being completed. PE uniform sales report and annual inventory will be evaluated at year end. Exception: Our review of the 7 th Grade T-Shirt resale activity disclosed errors on the sales report. An initial receipt or inventory shortage with a resale value totaling $480 was subsequently documented as a non-sale disposition (Tshirts given away) after we brought this to the attention of the school. Our review found Ticket sales reports were completed for several Athletic events. Ticket Inventory reports are being maintained. Exception: Our review of eleven (11) disbursement transactions totaling $6, within the September, 2012 through February, 2013 time period found 3 instances where the

11 Audit Comment 10: Check number 5031 for $49.95 and check number 5143 for $50 were improper expenditures made from the General account for coffee supplies and flowers. Audit Comment 11: The School Board Procurement Services Policy was not followed for the purchase of PE uniforms. Three quotes must be obtained for all expenditures over $5,000. forget to date the purchase order. Bookkeeper will not use general account for supplies that does not benefit the student body. Make sure when someone puts in a purchase order for an amount over $5,000 that they have bid the item out. Principal s written approval was after the goods or services were ordered/purchased. We also noted several requisitions that were not dated by the principal. Our review of the General account ledger found no apparent improper expenditures. Exception: We did note that the school is incurring late fees and finance charges totaling $ on postage machine expenditures. Exception: Three quotes were not obtained for the purchase of PE uniforms totaling $23, Exception: Official Receipts and Checks were not always issued in numerical sequence in the School Funds Online system. Pre-numbered receipts and checks should be issued in numerical sequence to assist in maintaining accountability and internal control.

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14 DR. PHILLIPS HIGH SCHOOL Four exceptions noted in the prior audit still require attention. June 30, 2012 Audit Comment June 30, 2012 Management Response Follow Up Results 1. Monies collected from outside the main office were not turned in to the school bookkeeper by the following day for several collections. All external collections should be turned in to the bookkeeper by the following day, regardless of amount. This is the first item addressed in the Faculty Handbook and is discussed during Teacher Preplanning and staff is notified each time they neglect to turn their deposits in a timely manner via notifications. Exception: Five (5) deposits tested revealed that staff members were delaying funds to bookkeeper for deposit to the bank. We also noted that official receipts were written out of sequence. 2. Several bank deposits were not deposited timely in the drop safe. School Board policy requires that all collections must be deposited within a drop safe or the depository the same day of collection. All deposits need to be done in a timely manner. Exception: The bookkeeper is forwarding memos to staff to request reasons for delays of funds to be deposit. 3. Assignment and accountability records were not completed properly. Subsidiary receipts noted as missing on the assignment and accountability records did not include written explanations or the principal's signature. Any missing receipts should have an explanation attached and include the principal's signature. Be sure all teachers/staff complete a missing receipt statement signed by them and the principal and filed with the Assignment and Accountability record. Exception: Sub-receipts used were filed in numeral order, however subsidiary receipts used for two (2) collections were not filed for audit. Pending: Assignment and Accountability Records were not complete, this will occur at year end. 4. There were no ticket inventory reports for the Prom, Homecoming and athletic tickets. All tickets must be accounted for on a ticket inventory report. All sponsors notified that a ticket inventory must be completed for these events. Exception: The ticket certification for the Homecoming was prepared after the event was held. Tickets sold were not pre-numbered or priced as policy requires. The ticket inventory report was not correct. Tickets sold and tickets on hand did agree with total ticket series used. The Prom has

15 DR. PHILLIPS HIGH SCHOOL not occurred. Ticket inventory was prepared for the 11/12 school year; the current school year will be completed at year end.

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19 Catalina Elementary School One out of eleven (11) exceptions requires additional attention. June 30, 2012 Audit Comment June 30, 2012 Management Response Follow Up Results 1. Assignment and accountability records were not completed. All subsidiary receipts need to be accounted for on an assignment and accountability record and inventories at yearend. Any missing receipts should have an explanation attached and include the principal s signature. 2. The corresponding subsidiary receipt numbers were not indicated on the monies collected form. All monies collected forms should include the subsidiary receipt numbers to provide an accurate audit trail. Bookkeeper must assure that the assignment and accountability records be completed properly and on a timely manner. On the monies collected form, all corresponding subsidiary receipts must be indicated. Pending: The accountability records are completed at year end. Monies Collected forms identified subsidiary receipts used and source of funds collected. 3. The subsidiary receipts were not kept in sequential order. Subsidiary receipts should be kept in sequential order to provide an appropriate audit trail and inventoried at yearend. 4. The requisition and purchase order form for check no was completed after the goods or services were purchased. A requisition and purchase order form must be completed each time an individual requests to make a purchase and must be approved by the principal prior to the purchase. All sub-receipts must be kept in order. A requisition and purchase order form must be completed each time an individual requests to make a purchase and must be approved by the principal prior to the purchase. The subsidiary receipts reviewed were filed in sequential order. Requisitions and purchase orders were completed and approved by the principal prior to purchases for the items tested during this interim review.

20 Catalina Elementary School 5. Extended day tuition and tuition balance reports for August 2011 and November 2011 were not forwarded to the District Office until after the 10th of the following month. All tuition must be sent to the District Office by the 10th of the following month. 6. A donation of $250 from Lockheed Martin Contribution was recorded in the Principal's Discretionary account. The donation letter stated the amount was for "National Education Outreach Activity." The only receipts to be recorded in the Principal's Discretionary account are those donations that specifically state that they are to be used at the principal's discretion. All tuition must be sent to the District Office by the 10th of the following month. The only receipts to be recorded in the Principal's Discretionary account are those donations that specifically state that they are to be used at the principal's discretion. Pending: As of 2/19/13 a balance of $1,700 is in the account. After all reimbursements are made out of the account, the balance will be forward to the District. The program has been outsourced. A donation letter was received to support receipting a rebate in the principal s discretion account. 7. An official receipt did not include proper supporting documentation. Supporting documentation, such as a remittance advice, a detailed monies collected form, or a subsidiary receipt, should accompany all official receipts. Supporting documentation, such as should accompany all official receipts a remittance advice, a detailed monies collected form, or a subsidiary receipt, should accompany all official receipts. Official receipts identified subsidiary receipts used and sources of funds collected. 8. There was no financial summary prepared for the vending machine contract. A calculation of the commission amount earned must be performed in order to determine if the correct amount of commission is being received from the vendor. 9. The book fair contract was not signed by the principal. All contracts are required to be completed and approved by the principal prior to inception. A calculation of the commission amount earned must be performed in order to determine if the correct amount of commission is being received from the vendor. All contracts are required to be completed and approved by the principal prior to inception. No commission transactions were receipted during our review period. Exception: Contracts were signed by the prior principal; the current principal is requesting new contracts from vendors to sign.

21 Catalina Elementary School 10. Check number 5016 dated May 15, 2012 in the amount of $ was not supported by a vendor invoice or receipt. Vendor invoices and vendor receipts should be retained in the internal account records for auditing purposes. Vendor invoices and vendor receipts should be retained in the internal accounts records for auditing purposes. Requisitions and purchase orders were completed and approved by the principal prior to purchases. 11. Check number 5016, described above, and check number 5014 in the amount of $ were improper expenditures made partially from the School Picture Commissions account for select students. All expenditures from the School Picture Commissions account should be for the benefit of the entire student body. Per the Redbook section 2-8, Picture commissions are to be transferred to the school s general account at year end for expenditures benefiting the entire student body. Pending: No transfers have been made from the account as of the date of this review.

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27 EAST RIVER HIGH SCHOOL Twelve of the 17 prior year exceptions indicated improvement. An additional exception was noted in the current year. June 30, 2012 June 30, 2012 Follow Up Results Audit Comment Management Response Audit Comment 1: The cap and gown contract could not be Copies of completed contracts The current cap and gown contact was available for located and should be retained for audit will be maintained by the review. purposes. bookkeeper. Audit Comment 2: Monies collected were not turned in to the school bookkeeper by the following day. Audit Comment 3: Bank deposits slips could not be reconciled to their corresponding official receipts; checks were not properly listed on deposit slips. Audit Comment 4: Sales reports were not completed for the ROTC (candy sales) & PE (lock sales). Audit Comment 5: Monthly financial reporting packages were not submitted on time for several months. Future deposits will be made within one business day. Inadequate response. Completed after Nov Sales reports will be on file with the bookkeeper. Monthly financial reports will be filed in a timely manner. Exception: (1) Our test of receipts found one major delay (40 days) in the timely deposit of funds ($2,770.00) to the bookkeeper by the Competitive Cheerleading account sponsor. There was a one day delay to the bookkeeper of $2, from the Band account sponsor. We also found an apparent $50 shortage relating to official receipt # An additional review found two more undetected shortages of $10 and $20. There were no discrepancies noted relating to bank deposit slips and corresponding official receipt amounts; checks were listed on bank deposit slips. There was no ROTC candy sales activity noted. The PE lock sales report was on file. All monthly financial reports to date prepared, signed, and submitted in a timely manner.

28 EAST RIVER HIGH SCHOOL Audit Comment 6: A PROP-2 form was not completed for the purchase of an asset valued over $1,000. Audit Comment 7: The balance in the Yearbook account was not transferred to the Yearbook Residual account at year end. Audit Comment 8: SB Procurement Services Policy was not followed for a Yearbook trip to NY. Three quotes were not obtained for the travel expenses. Audit Comment 9: A review of the Sales Tax account and multiple concession sales reports disclosed sales tax is not being computed and remitted to the Department of Revenue. Audit Comment 10: Funds changed hands without the preparation of a written transfer document. Audit Comment 11: Official Receipts were not always issued in numerical sequence for the months of October 2011 and January Audit Comment 12: The Band ledger account did not clearly identify cheesecake sales revenues making it impossible to reconcile collections with the sales report. It was Required PROP-2 forms will be filed in the future. Yearbook account balances will be transferred to the Yearbook Residual account in the future. Board purchasing policy will be followed in the future. No violations were found in the recent audit and no further violations will be reported. All funds collected by a coach/sponsor will be deposited by that individual using the Monies Collected form. Official Receipts will be issued in numerical order. We will follow the Fundraising procedure outlined in both the Faculty Handbook (provided during preplanning) and the There were no purchases noted that would have required the filing of a PROP-2 form. The yearend balance in the Yearbook account has been transferred to the Yearbook Residual account. We noted that there were three quotes for the Yearbook trip to New York for the current year. Exception: (2) Our review found that several Concession Sales Reports were incomplete; the related Sales Tax had neither been calculated nor posted to the Sales Tax account. Exception: (3) The Girls Volleyball candy sale failed to issue the required subsidiary receipts when students turned over money to the sponsor. Official receipts appeared to have been issued in order. Exception: (4) Our review of numerous sales reports showed that the official receipts corresponding to the sales proceeds collected during sales activities had not been noted on the sales reports as required, making the

29 EAST RIVER HIGH SCHOOL not possible to determine proceeds were deposited. that all sales policies outlined by the District. reconciliation between the sales report and the ledger account very difficult, if not impossible. The check numbers relating to the purchase of resale items was also often not listed on the sales report. In addition, completed fundraiser sales reports and the corresponding request for fundraising forms had not been attached to each other and filed as required by page 3-2 of the Internal Accounts Handbook. Audit Comment 13: The Ticket Sales Reports for the Drama Fall production disclosed several math calculation errors. Due to the errors noted, we were unable to determine if all monies were accounted for. Audit Comment 14: Several purchase order forms totaling $10, were completed after the goods or services were purchased. A requisition and purchase order form must be completed each time an individual requests to make a purchase and must be approved by the principal prior to the purchase. Audit Comment 15: Parking donation collections totaling $ were not deposited in the We will follow the Fundraising procedure outlined in both the Faculty Handbook (provided during preplanning) and the policies outlined by the District. We will follow the Fundraising procedure outlined in both the Faculty Handbook (provided during preplanning) and the policies outlined by the District. We will follow the Fundraising procedure outlined in both the The ticket sales report for this year s fall Drama production appeared to be in good order. Exception: (5) There appeared to have been several orders placed by the sponsor of the Competitive Cheerleader activity which failed to comply with purchasing procedures. The final purchase order lacked adequate price and quantity figures to accurately determine the school s potential liability. In addition, the eventual invoice totals exceeded the Competitive Cheerleader account balance by as much as $7,500.00, requiring the payment for this liability to be made from the General Athletic account. Additionally, a disbursement of $1, from the Student Venture account lacked the necessary supporting invoice documentation. The disbursement was made incorrectly, based upon an amount due stated in an from the account sponsor. Our review found no instances of failure to deposit all funds collected with the bookkeeper.

30 EAST RIVER HIGH SCHOOL school's internal account. We learned that the cash collected was donated to a local middle school club in appreciation for volunteering at the home football games. Audit Comment 16: Check #5184 and the approved purchase requisition totaled $1,215.60, yet the supporting invoice totaled $1, We were unable to determine the reason for the $625 variance. Audit Comment 17: Transfer documents or receipts were not issued immediately upon transfer of collections from students to teachers and from the teachers to the bookkeeper. Audit Comment 18: N/A Faculty Handbook (provided during preplanning) and the policies outlined by the district. We will follow the Fundraising procedure outlined in both the Faculty Handbook (provided during preplanning) and the policies outlined by the District. Not addressed in the 2012 Audit response Matrix. N/A We found no instance of this type of discrepancy in our disbursements test. Our review found no instances in which the issuance of transfer documents was delayed, but we did find one instance in which the necessary subsidiary receipts were not issued. (See the exception to audit comment #10.) Exception: (6) We noted during our review of athletic ticket sales activity that $500 in gate proceeds was improperly withheld from the bookkeeper in order to increase the football change fund to $1000. Any additional change funds needed should have been requested through a purchase order transaction.

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36 EDGEWATER HIGH SCHOOL Eight of the ten (10) exceptions indicated improvement. Two additional exceptions were noted. June 30, 2012 Audit Comment Audit Comment 1: The Football account had a deficit balance on June 30, Audit Comment 2: Monies collected from outside the main office are not being turned in to the school bookkeeper by the following day. Audit Comment 3: Sales reports were not completed for the wrestling and athletic training fundraisers and parking decals. June 30, 2012 Management Response The deficit needs to be cleared. The deficit is expected to be cleared by December 2012 During pre-planning in August 2012, staff will be reminded of turn-in procedures. During pre-planning in August 2012, staff will be reminded of the process for sales reports for every activity. Follow Up Results The Football account balance on February 11, 2013 was $0. A review of the Trial Balance Report dated February 19, 2013 found no accounts with a deficit at that time. We reviewed the supporting documentation for ten (10) official receipts totaling $9, within the August, 2012 through January, 2013 time period. Exceptions: Our review found monies collected by staff members for 8 of the 10 receipts reviewed totaling $6,674 were not turned in to the Bookkeeper in a timely manner. We noted that collections totaling $3,174 were not deposited in the school safe the same day of collection as required by policy. We also noted that subsidiary receipts were not issued as required for transcript collections totaling $377. Our review found sales reports were completed for wrestling, athletic training and French honor society fundraisers as well as parking decals. The Sales Reports for Lacrosse Poinsettia sale is in the process of being completed.

37 Audit Comment 4: Several checks were issued without a requisition and purchase order form being approved by the principal. Audit Comment 5: The monthly financial reporting package for February, 2012 was not completed in a timely manner. Audit Comment 6: A donation was placed in the Principal s Discretionary account without a letter that specifically states that they are to be used at the principal s discretion. During pre-planning in August 2012, staff will be reminded of the process for requisitions and purchase order processes. The bookkeeper will complete and turn in the monthly reporting package as directed. The bookkeeper will make sure donations to the Principal s Discretionary account are clearly marked and follow district policies. Exception: Our review of twelve (12) disbursement transactions totaling $8, in the August, 2012 through January, 2013 time period found 5 instances where the Principal s written approval was after the goods or services were purchased. All of the monthly reports during the July 2012 through January 2013 period were completed and submitted to the District Office in a timely manner. Our review of the Principal s Discretionary account ledger found adequate supporting documentation for all receipt entries. Audit Comment 7: Homecoming tickets were noted as being sold for different prices without printed ticket prices. Audit Comment 8: There was an improper disbursement from the Football Booster account that had a deficit balance. Audit Comment 9: The Procurement Services Policy was not followed for the purchase of football uniforms and homecoming entertainment. Three quotes must be obtained for all expenditures over $5,000. Tickets for the same event that are sold at different prices will be clearly marked. Disbursements will not be approved or made from accounts that may be in a deficit. All items purchased will have three quotes as needed. Our review found Homecoming tickets were sold for $25 during 10/8/2012 through 10/12/2012 and $30 during 10/15/12 through 10/17/2012. A ticket inventory report and ticket sales report were completed for this event. Our review of the Football Booster account ledger found no apparent improper expenditures or deficit balance. Our review found quotes were obtained for the Christmas tree fundraiser purchase and the homecoming entertainment expense.

38 Audit Comment 10: Requisitions and purchase orders were not dated by the principal. The principal will date all requisitions and purchase orders. Our review of twelve (12) disbursement transactions found requisitions and purchase orders were dated by the principal.

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41 MAYNARD EVANS HIGH SCHOOL Five out of the eleven (11) exceptions noted require additional attention. June 30, 2012 Audit Comment 1. Ticket reports were not properly completed for several events. June 30, 2012 Management Response Ticket reports need to be properly completed for all events. All Ticket reports and Certification Statements for numbered in-house tickets must be done and supported with proper documentation. Follow Up Results-Action 1. Exception: Tickets sales reports did not include account number, official receipt number, or the date when funds were released to the bookkeeper for deposit to the bank. Ticket inventory was not prepared, however an excel spreadsheet was provided to the ticket manager to help with the process. 2. Subsidiary Receipts Accountability report was not accounted for and filed correctly. 3. Cash Proceeds from a football game were not deposited on time with the bookkeeper. Subsidiary receipts were delayed in deposit to the bookkeeper. 4. Goods/Services ordered/received before the requisition/purchase Order Completed and no invoice attached for payment. Missing Prop-2 form. The Subsidiary Receipt report will be reviewed and completed properly. All monies and sub-receipts should be collected and turned in daily. Requisitions/PO's should be completed and approved prior to purchase and invoice will be attached for payment. PROP-2 form must be completed on all capital expenditure of $1,500 or more. A different form is used, however the required information for accountability of subsidiary receipts is not provided. Subsidiary receipts were not filed in numerical order. Void subsidiary receipts were not filed with receipts series. 2. Exception: Official receipts numbers were not indicated on ticket sales reports as required. 3. Exception: Checks issued were not filed in numerical sequence with invoices and receipts to support funds issued. The bookkeeper is organizing files for the yearend audit. No purchases from our interim review required a Prop-2.

42 5. Fund Raising Activities and paperwork, and procedures were improperly followed. 6. Uniform Shirt Inventory Report for the beginning of the year was not accounted for. 7. Disbursement Documentation filed incorrectly. 8. Concession Sales report completed incorrectly, discrepancy in the amount. Fund Raising Activity Reports should be recorded and accounted for. Uniform Shirts inventory must be done at the beginning and ending of the year. Filing must consist of purchase order, invoice and check number. Concession Sales report must be accurate. 4. Exception: The required Fund Raising Activity Report was not used; official receipt and account number were not indicated. Pending: T-shirts sales inventory is on hand, however the store manager will complete yearend inventory for audit. Pending: Checks issued were not filed in numerical sequence with invoice or receipts to support funds issued. 5. Exception: The required Concession Sales Report was not used, however another form was prepared which did indicate the official receipt in order to trace to record. 9. Investment Interest not posted. Posting must be entered for all Investment Interest. Bank Statement review of the receipt ledger indicated that an amount of $ of interest was posted. 10. Stale Outstanding checks not voided. All outstanding checks dated prior to 6/30/11 should be voided. Pending: At the present time at least 32 checks have outstanding for 80 days. 11. Sales tax was paid on a P-Card purchase. Invoice missing from a purchase made through P-Card. Supervisor s signature missing on P- Card purchases. Cardholder should ensure that district is not charged sales tax on expenditures. Invoice must be attached to all P-Card expenditures. Supervisor signature must be in the record of charge card use. A credit of $48.47 was received for sale tax paid.

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45 HILLCREST ELEMENTARY SCHOOL Eleven (11) of the 15 exceptions indicated improvement. June Audit Comment Audit Comment 1: The fund balance appeared excessive as of June 30, Audit Comment 2: The school picture commission, receipt number 364, was posted to the Principal's Discretionary account. Audit Comment 3: A sales report was not completed for the school shirts and yearbook sales. Audit Comment 4: Request for fund raising activity forms were not completed for any fundraising activity. Audit Comment 5: The requisition and purchase order forms for check numbers 5010, 5064 and 5075 were completed after the goods or services were purchased. June 30, 2012 Management Response Maintain fund balance around $12,000 based on this year's total receipts. Fund balance will be spent on current student body to reflect money in the year of receipt. School pictures proceeds will be placed in the general account to benefit entire student body. Complete a sales report for all school shirts and yearbook sales. A fundraising activity form will be completed submitted to the Principal for approval prior to any fundraising activity. Requisition and purchase order forms for all checks will be completed each time an individual requests to make a purchase and will be submitted to the Principal for approval prior to the purchase. Follow Up Results The fund balance at the time of the interim review had increased when compared to the current year s beginning balance. However, the school s SAC, along with school administration, has plans for use of these funds to implement additional technology in the school. The picture commission account balance was transferred to the General account. Exception: (1) A sale of shirts lacked a sales report as well as an inventory. Exception: (2) The Art fundraiser lacked request for fundraiser, There was also no contract associated with this activity. Exception: (3) Our review showed one instance in which a Requisition and Purchase Order form was incomplete at the time of the Principal s approval: lacking the required information for Quantity, Description, Unit Price(s), and Total Cost. Also, the Sales Tax was not paid on the purchase of Chorus shirts which were resold.

46 HILLCREST ELEMENTARY SCHOOL Audit Comment 6: The bank reconciliation for November 2011 January 2012, and March 2012 did not include the principal s signature and was not dated. Audit Comment 7: One official receipt was issued for collections from multiple sources. Audit Comment 8: Deposit slips were not numbered. Audit Comment 9: Assignment and accountability records were not completed properly for Extended Day. The record was not signed by the preparer and the quantity on hand was not indicated. Audit Comment 10: Monies collected from outside the main office were not turned in to the school bookkeeper by the following day for certain collections. Audit Comment 11: Transfer documents or receipts were not issued immediately upon transfer of collections from the students to the teachers for certain collection(s). Monthly bank reconciliations will include the Principal s signature and will be dated in a timely manner. Official receipts will be issued separately for each monies collected from multiple sources. All deposit slips will be manually numbered in sequential order as they are utilized as per School Board Policy. All subsidiary receipts will be accounted for on an assignment and accountability record and will be inventoried at year-end. All assignment and accountability records will be signed (the person responsible for maintaining the records). Turn in all external collections to the Bookkeeper by the end of the day, regardless of amount. Issue transfer documents or receipts immediately upon transfer of collection from the students to the teachers. All bank reconciliations reviewed included the Principal s signature. Subsequent to the arrival of the replacement bookkeeper, the bookkeeper s signature was also observed on the copy of the monthly bank reconciliations. We noted no exceptions of this nature. All deposit slips were numbered. The Extended Day Program has been outsourced to the YMCA as of the start of the current school year. The interim Assignment & Accountability Records appear to be in good order. Exception: (4) There was one instance in our review where funds were delayed in deposit with the bookkeeper. There were no exceptions of this nature noted in our review.

47 HILLCREST ELEMENTARY SCHOOL Audit Comment 12: Several monies collected forms did not indicate the purpose of the receipt, were not dated, were not signed by the Bookkeeper or sponsor and did not indicate the respective subsidiary receipt numbers. Audit Comment 13: Several official receipt numbers were issued days after the funds were placed in the drop safe. Audit Comment 14: A bank deposit, official receipt number 215, was not deposited timely in the drop safe. Audit Comment 15: Extended Day tuition and the corresponding tuition balance reports for October 2011, December 13, 2011, January 2012, and March 2012, were not forwarded to the District Office until December 13, 2011, February 20, 2012, February 20, 2012, and May 15, Fully complete monies collected forms indicating purpose of receipt, date and sign by Bookkeeper or sponsor and indicate respective subsidiary receipt numbers. Issue official receipts in a timely manner. Receipts will be deposited in the drop safe by the end of the day per School Board Policy. All tuition will be sent to the District Office by the 10th of the following month. There were no exceptions of this nature noted in our review. There were no exceptions of this nature noted in our review. There were no exceptions of this nature noted in our review. There is no longer a school-based Extended Day program. It was outsourced to the YMCA.

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49 LAKEMONT ELEMENTARY SCHOOL Twelve (12) of the thirteen (13) exceptions indicated improvement. June 30, 2012 Audit Comment Audit Comment 1: Assignment and accountability records were not completed properly. Subsidiary receipts on hand were not correctly listed. Audit Comment 2: The fund balance appears excessive as of June 30, Audit Comment 3: Transfer documents or receipts were not issued immediately upon transfer of collections from the students to the teachers Audit Comment 4: Assignment and Accountability records were not completed for Extended Day. June 30, 2012 Management Response Assignment and Accountability records will be completed properly and inventoried at yearend. Monies will be utilized in the year received for current student body. Teachers have been trained in procedures and requirements regarding monies collected and receipts. An Assignment and Accountability record will be completed for all receipts used by the Extended Day Program. Follow Up Results Exception: (1) An issue remains concerning the accountability for and the proper handling and filing of subsidiary receipts. As of February 28, 2013, the fund balance has decreased by $12, (29.69%). The excess balance as of June 30, 2012 may have been caused in large part by the accounts payable from the Extended Day Tuition account which had a balance as of June 30, 2012 of $21, We found no instances in our review in which there appeared to be a delay in issuing the required transfer document or subsidiary receipt. Subsidiary receipt Assignment & Accountability Records for the Extended Day program appear to be in order. Audit Comment 5: Deposit slips were not numbered. Deposit slips will be numbered. Bank deposit slips have been numbered. Audit Comment 6: A donation with no specific purpose designated by the donor was posted to the Principal's Discretionary account. Donations with no specific purpose designated by the donor will be posted to the General Activities Account. Our review of the Principal s Discretionary account showed two receipt entries, both of which were supported by written donation documentation.

50 LAKEMONT ELEMENTARY SCHOOL Audit Comment 7: Monies collected from outside the main office were not turned in to the school bookkeeper by the following day. Audit Comment 8: A bank deposit was not deposited timely in the drop safe. Audit Comment 9: An official receipt did not include proper documentation. Audit Comment 10: The requisition and purchase order forms for two checks were not signed by the principal. Audit Comment 11: The attendance rosters for the Extended Day Program for the months of October, January and February were not signed by an Extended Day Program employee. Audit Comment 12: Extended Day tuition and the corresponding tuition balance reports for September 2011 and May 2012 were not forwarded to the District Office by the 10 th of the following month. Monies collected outside the main office will be turned in to the school bookkeeper by the following day. We administered Internal Accounts monies collected procedure training with teachers. All bank deposits will be deposited into the drop safe in a timely manner. Teachers have been trained regarding bringing funds to bookkeeper on time. All official receipts will include proper documentation. We have informed all companies providing funds the importance of providing documentation. Requisition and purchase order forms for checks will be signed by the principal. Attendance rosters for the Extended Day Program will be signed by an Extended Day Program employee. All Extended Day tuition will be sent to the District Office by the 10th of the following month. Our review of cash receipts found no instances of delayed deposits to the bookkeeper. Our review of cash receipts found no instances of delayed deposits to the safe/bank. All Official Receipts reviewed included proper documentation. We reviewed all Request for Services, Equipment or Supplies forms; all forms had the required signatures. Extended Day program attendance rosters have been signed by a program employee. It appears that Extended Day Tuition Balance Reports are forwarded to the District in a timely manner.

51 LAKEMONT ELEMENTARY SCHOOL Audit Comment 13: Lock box key holders did not sign the Extended Day deposit record for the weeks of December 8, 2011 and May In addition, receipts numbers were not indicated on these reports. All Extended Day deposit records will be signed by both key holders and retained in the internal account records for auditing purposes. Extended Day Program Deposit Summaries, subsequent to the last audit, that are for cash receipts which generate subsidiary receipts are signed by the receiver and verifier of funds; subsidiary receipts series are listed. Extended Day tuition funds received by credit card (MPN) do not generate subsidiary receipts.

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53 MILLENNIA ELEMENTARY SCHOOL Seven of the twelve (12) exceptions indicated improvement. Two (2) exceptions will need to be evaluated at year-end. June 30, 2012 Audit Comment June 30, 2012 Management Response Audit Comment 1: Monthly bank reconciliation reports were not Careful attention to detail will be made completed timely during the school year and the when recording numbers into the SFO June 30, 2012 bank reconciliation report contained system. numerous errors. Follow Up Results Monthly bank reconciliations were completed through January 31, All reconciliations were completed in the month following the reporting period except July and October Audit Comment 2: Assignment and Accountability inventory records for subsidiary receipts were not signed by the preparer and were not completed properly. No response noted. Year-End Assignment and Accountability records were partially completed. We will defer our review until year-end. Audit Comment 3: Collections totaling $ were not deposited in the school safe in a timely manner. This delay resulted in a $36 cash shortage that was not posted to the system until we brought this to the attention of the school. Audit Comment 4: Several Extended Day receipts were not posted in the accounting system in a timely manner. The Extended Day collections for the month of November and December 2011 were not posted each week but were posted as a monthly total. In addition, the collections for May 25, 2012 were not posted until June 4, Monies collected during absences will be noted with a signed affidavit and receipts will be processed only by the Principal or Assistant Principal with their signatures verifying amount on monies collected forms. Extended day receipts will now be processed separately and dated for the date of deposit. We reviewed the supporting documentation for thirteen (13) official receipts totaling $1,618 within the September, 2012 through January, 2013 time period. Exception: Our review found several collections during November 2012 were not deposited in the school safe in a timely manner. Exception: Our review of the School Funds Online system on March 11, 2013 found only 2 extended day receipts posted during the month of February.

54 Audit Comment 5: Monies collected by staff members were not forwarded to the school bookkeeper by the following day. Our review disclosed collections totaling $379 that were delayed from 1 day to several weeks. Audit Comment 6: An audit trail was not always provided. Monies Collected Forms did not reference the official receipt number and a calculator tape indicating the official receipt number was not always prepared for subsidiary receipt collections. Audit Comment 7: Funds changed hands without the preparation of a written transfer document. Audit Comment 8: Our review of 10 checks totaling $9,769 disclosed one requisition totaling $153 that was completed after the goods or services were received and three requisitions totaling $5,784 that were not signed by the Principal. A duplicate payment totaling $ was noted. Instructional packets and staff meetings have been held to review internal account policy to each teacher prior to being furnish receipt books for collection of monies. During bank deposit process, bookkeeper now will have a Do Not Disturb sign on door to have ability to make sure all information is provided. At the end of the month Principal and Bookkeeper will meet and review months entries. Checks that are donated to the school will now be processed by bookkeeper, recorded on monies collected forms and matched with Official receipt numbers when deposited. No checks will be issued without the prior authorization signature of the principal. A refund of $ was requested and deposited back into the school internal account. Our review found one instance where funds collected on 10/4/12 and 10/11/12 were not forwarded to the bookkeeper until 10/16/12. Pass since the individual responsible was a music teacher assigned to several schools. Exception: An audit Trail was not always provided The calculator proof tapes prepared for subsidiary receipt deposits did not always reference the official receipt number and at times referenced the Deposit ID number instead of the official receipt number. We also noted some official receipt number sequence errors on the Monies Collected forms during the month of October Our review found no instances where transfer documents or receipts were not issued immediately upon the transfer of collections. Exception: Our review of eleven (11) disbursement transactions totaling $6, within the August, 2012 through January, 2013 time period found 3 instances where the Principal s written approval was after the goods or services were ordered / purchased. A refund from the vendor was received and posted to the system 9/12/12 official receipt #429.