STATE OF NEW MEXICO ALBUQUERQUE MUNICIPAL SCHOOL DISTRICT NO. 12 LOS PUENTES CHARTER SCHOOL STATEMENT OF NET POSITION June 30, 2017

Transcription

1 Exhibit A-1 STATE OF NEW MEXICO STATEMENT OF NET POSITION Governmental Activities Component Unit ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets Cash and cash equivalents $ 429,985 $ 77,899 Receivables, net of allowance for uncollectibles: Due from other governments 6,001 - Due from primary government - current portion - 96,343 Prepaid expenses - - Total current assets 435, ,242 Non-current assets Due from primary government - non-current portion - 1,394,813 Capital assets: Land 590,000 - Building/Building Improvements 2,585,634 - Furniture, fixtures and equipment 189,262 - Less: accumulated depreciation (575,569) - Total non-current assets 2,789,327 1,394,813 Total assets 3,225,313 1,569,055 Deferred outflows of resources related to net pension liability 453,415 - TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 3,678,728 $ 1,569,055 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities Accrued liabilities $ 27,460 $ - Accounts payable - - Note payable - Current portion 96,343 Long-term debt - Lease purchase - current portion 96,343 Total current liabilities 123,803 96,343 Non-current liabilities Net pension liability 2,640,371 - Note payable - 1,394,813 Long-term debt - Lease purchase 1,394,813 - Total non-current liabilities 4,035,184 1,394,813 Total liabilities 4,158,987 1,491,156 Deferred inflows of resources related to net pension liability 363,507 - Net investment in capital assets 1,298,171 - Restricted 95,758 - Unrestricted (2,237,695) 77,899 Total net position (843,766) 77,899 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 3,678,728 $ 1,569,055 The accompanying notes are an integral part of the financial statements. G-1

2 Exhibit A-2 STATE OF NEW MEXICO STATEMENT OF ACTIVITIES Year Ended FUNCTIONS/PROGRAMS Program Revenues Net Revenues Operating Capital (Expenses) Charges for Grants and Grants and and Changes Component Expenses Services Contributions Contributions in Net Position Unit Governmental activities: Instruction $ 1,152,410 $ 15,292 $ 171,127 $ $ (965,991) $ - Support services: Students 622,866-19,286 - (603,580) - Instruction 22, (22,846) - General Administration 33, (33,017) - School Administration 194, (193,322) - Central Services 159, (159,630) - Operation & Maintenance of Plant 211, (211,071) - Student Transportation Other Support 2, (2,254) Operating of Non-instructional Services Food Services Operations 12, (12,625) - Community Services Operations Facilities, Materials, Supplies and Other Services 88, ,166 4,504 44,734 - Lease purchase - interest expense 134, (134,644) - TOTAL GOVERNMENTAL ACTIVITIES $ 2,634,315 $ 15,292 $ 320,273 $ 4,504 (2,294,246) COMPONENT UNIT Foundation $ 112,264 $ - $ - $ - - (112,264) GENERAL REVENUES State Equalization Guarantee 2,207,148 Miscellaneous - 135,398 Property Taxes 176,259 - Total general revenues 2,383, ,398 Change in net position 89,161 23,134 Net position, beginning of year (932,927) 54,765 Net position, end of year $ (843,766) $ 77,899 The accompanying notes are an integral part of the financial statements. G-2

3 STATE OF NEW MEXICO Exhibit B-1 ALBUQUERQUE MUNICIPAL SCHOOL DISTRICT NO, 12 BALANCE SHEET - GOVERNMENTAL FUNDS Instructional Food Title I IDEA-B General Materials Services IASA Entitlement ASSETS Cash and cash equivalents $ 339,704 $ 3,131 $ - $ 495 $ 29 Accounts receivable: Due from other governments Due from other funds Prepaid expenses TOTAL ASSETS $ 339,704 $ 3,131 $ $ 495 $ 29 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Current liabilities: Accounts payable $ - $ - $ - $ - $ - Accrued expenses 26, Due to other funds Due to other governments Total current liabilities 26, Deferred inflows of resources - unavailable revenues Fund balances: Nonspendable Restricted - 3, Committed Assigned 201, Unassigned (deficit) 111, Total fund balance (deficit) 312,768 3, TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ 339,704 $ 3,131 $ - $ 495 $ 29 G-3

4 STATE OF NEW MEXICO Exhibit B-1 BALANCE SHEET - GOVERNMENTAL FUNDS English Teacher/ Language Principal Title I School Title XIX Golden Apple Acquisition Training Improvement Medicaid Foundation ASSETS Cash and cash equivalents $ $ - $ $ 4,070 $ 237 Accounts receivable: Due from other governments Due from other funds Prepaid expenses TOTAL ASSETS $ $ $ $ 4,070 $ 237 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Current liabilities: Accounts payable $ $ - $ $ - $ Accrued expenses Due to other funds Due to other governments Total current liabilities Deferred inflows of resources - unavailable revenues Fund balances: Nonspendable Restricted , Committed Assigned Unassigned (deficit) Total fund balance (deficit) , TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ $ - $ $ 4,070 $ 237 G-4

5 STATE OF NEW MEXICO Exhibit B-1 BALANCE SHEET - GOVERNMENTAL FUNDS NM Grown Dual Instruction Credit Fresh Fruits & Vegetables Public Capital Outlay School HB33 Capital Improvements State SB9 Capital Improvements ASSETS Cash and cash equivalents $ - $ $ $ 38,519 $ Accounts receivable: Due from other governments - - 3,780 - Due from other funds Prepaid expenses TOTAL ASSETS $ $ $ $ 42,299 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Current liabilities: Accounts payable $ - $ $ $ $ Accrued expenses Due to other funds Due to other governments Total current liabilities Deferred inflows of resources - unavailable revenues 1,027 Fund balances: Nonspendable Restricted ,272 - Committed Assigned Unassigned (deficit) ' - Total fund balance (deficit) ,272 - TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ - $ $ $ 42,299 $ G-5

6 STATE OF NEW MEXICO BALANCE SHEET - GOVERNMENTAL FUNDS Exhibit B Local SB9 Capital Improvements Total Primary Government ASSETS Cash and cash equivalents $ 43,800 $ 429,985 Accounts receivable: Due from other governments 2,221 6,001 Due from other funds - - Prepaid expenses - - TOTAL ASSETS $ 46,021 $ 435,986 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Current liabilities: Accounts payable $ - $ - Accrued expenses - 27,460 Due to other funds - - Due to other governments - - Total current liabilities - 27,460 Deferred inflows of resources - unavailable revenues 879 1,906 Fund balances: Nonspendable - - Restricted 45,142 93,852 Committed - - Assigned - 201,655 Unassigned (deficit) - 111,113 Total fund balance (deficit) 45, ,620 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ 46,021 $ 435,986 The accompanying notes are an integral part of the financial statements. G-6

7 Exhibit В-2 STATE OF NEW MEXICO RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION Total Fund Balance - Governmental Funds (Governmental Fund Balance Sheet) $ 406,620 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. The cost of capital assets is 3,364,896 Accumulated depreciation is (575,569) Total capital assets 2,789,327 Deferred inflows and outflows of resources related to the net pension liability and not reported in the funds. Deferred outflows of resources 453,415 Deferred inflows of resources (363,507) Deferred inflows of resources - unavailable property taxes 1,906 Long-term and certain other liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term and other liabilities at year end consist of: Net pension liability (2,640,371) Long-term debt - Lease purchase (1,491,156) Total long-term and other liabilities (4,131,527) Net position of governmental activities (Statement of Net Position) $ (843,766) The accompanying notes are an integral part of the financial statements. G-7

8 STATE OF NEW MEXICO Exhibit B-3 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended June 30, General* Instructional Materials Food Services Title I IASA IDEA-B Entitlement REVENUES Property taxes $ $ - $ $ - $ Local and county sources 15, State sources 2,207,148 11, Federal sources ,019 59,662 Interest Total revenues 2,222,440 11,715 72,019 59,662 EXPENDITURES Current: Instruction 967,164 17,434-60,899 53,856 Support services: Students 600, ,120 5,806 Instruction 22, General administration 31, School administration 191, Central services 159, Operation & maintenance of plant 211, Student transportation Other support services 2, Operation of non-instructional services: Community services operations Food services operations 7,178-5, Capital outlay 52, Lease purchase - principal payments 33, Lease purchase - interest payments 18, Total expenditures 2,298,809 17,434 5,447 72,019 59,662 Excess (deficiency) of revenues over (under) expenditures (76,369) (5,719) (5,447) - - Other financing sources (uses): Other financina sources Total other financing sources (uses) NET CHANGES IN FUND BALANCES (76,369) (5,719) (5,447) - - FUND BALANCES, BEGINNING OF YEAR 389,137 8,850 5,447 _ FUND BALANCES, END OF YEAR $ 312,768 $ 3,131 $ $. $ Fund type is either the general fund or a major specical revenue fund with a legally adopted budget that is presented as required by the New Mexico State Auditor. G-8

9 STATE OF NEW MEXICO Exhibit B-3 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended English Teacher/ Language Principal Title I School Title XIX Golden Apple Acquisition Training Improvement Medicaid Foundation REVENUES Property taxes $ $ - $ - $ - $ Local and county sources State sources ,360 - Federal sources 2,273 16,128 24, Interest Total revenues 2,273 16,128 24,000 2,360 EXPENDITURES Current: Instruction 2,273 15,434 24, Support services: Students Instruction General administration School administration Central services Operation & maintenance of plant Student transportation Other support services Operation of non-instructional services: Community services operations Food services operations Capital outlay Lease purchase - principal payments Lease purchase - interest payments Total expenditures 2,273 16,128 24, Excess (deficiency) of revenues over (under) expenditures ,360 - Other financing sources (uses): Other financina sources Total other financing sources (uses) NET CHANGES IN FUND BALANCES ,360 - FUND BALANCES, BEGINNING OF YEAR _ 1, FUND BALANCES, END OF YEAR $ $ $ - $ 4,070 $ 237 G-9

10 STATE OF NEW MEXICO Exhibit B-3 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended Dual Credit NM Grown Fresh Public School HB33 Capital State SB9 Capital Instruction Fruits & Vegetables Capital Outlay Improvements Improvements REVENUES Property taxes $ $ $ $ 119,497 $ Local and county sources State sources 2, ,166-4,504 Federal sources Interest Total revenues 2, , ,497 4,504 EXPENDITURES Current: Instruction 2, Support services: Students Instruction General administration ,183 - School administration Central services Operation & maintenance of plant Student transportation Other support services Operation of non-instructional services: Community services operations Food services operations Capital outlay Lease purchase - principal payments ,223 90,651 2,902 Lease purchase - interest payments ,943 50,043 1,602 Total expenditures 2, , ,877 4,504 Excess (deficiency) of revenues over (under) expenditures (22,380) - Other financing sources (uses): Other financing sources Total other financing sources (uses) NET CHANGES IN FUND BALANCES (22,380) - FUND BALANCES, BEGINNING OF YEAR 63,652 FUND BALANCES, END OF YEAR $ $ $ $ 41,272 $ -. G-10

11 STATE OF NEW MEXICO Exhibit B-3 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended Total Loca ISB9 Capital Improvements Primary Government REVENUES Property taxes $ 58,893 $ 178,390 Local and county sources - 15,292 State sources - 2,357,843 Federal sources - 174,082 Interest - - Total revenues 58,893 2,725,607 EXPENDITURES Current: Instruction - 1,144,010 Support services: Students - 617,923 Instruction - 22,846 General administration ,017 School administration - 192,260 Central services - 159,630 Operation & maintenance of plant - 211,071 Student transportation - - Other support services - 2,254 Operation of non-instructional services: Community services operations - - Food services operations - 12,625 Capital outlay - 52,153 Lease purchase - principal payments 33, ,897 Lease purchase - interest payments 18, ,644 Total expenditures 52,061 2,826,330 Excess (deficiency) of revenues over (under) expenditures 6,832 (100,723) Other financing sources (uses): Other financing sources - - Total other financing sources (uses) - - NET CHANGES IN FUND BALANCES 6,832 (100,723) FUND BALANCES, BEGINNING OF YEAR 38, ,343 FUND BALANCES, END OF YEAR $ 45,142 $ 406,620 The accompanying notes are an integral part of the financial statements. G-11

12 Exhibit В-4 STATE OF NEW MEXICO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended Net Changes in Fund Balances - Total Governmental Funds (Statement of Revenues, Expenditures, and Changes in Fund Balances) $ (100,723) Amounts reported for governmental activities in the Statement of Activities are different because: In the Statement of Activities, certain operating expenses - compensated absences (sick and annual leave) are measured by the amounts earned during the year. In the Governmental Funds, however, expenditures for these items are measured by the amounts of financial resources used (essentially, the amounts actually paid). Expenses related to the net pension liability not reported in the funds. (15,099) Unavailable revenues - property taxes (2,131) Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. In the current period, these amounts were: Capital outlay 102,785 Depreciation expense (139,568) Excess of depreciation expense over capital outlay (36,783) The issuance of long-term debt (e.g., bonds, notes, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Proceeds from capital lease Lease purchase principal payments Excess proceeds over payments Change in net position of governmental activities (Statement of Activities) $ 89,161 The accompanying notes are an integral part of the financial statements. G-12

13 Exhibit С-1 STATE OF NEW MEXICO ALBUQUERQUE MUNICIPAL SCHOOL DISTRICT NO, 12 GENERAL FUND (FUND 11000) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (BUDGETARY BASIS) AND ACTUAL Year Ended Budgeted Amounts Amounts Original Final Actual Variance From Final Budget (Budgetary Basis) Positive (Negative) REVENUES Local and county sources $ $ $ 15,292 $ 15,292 State sources 2,283,949 2,206,280 2,207, Federal sources Interest TOTAL REVENUES 2,283,949 2,206,280 2,222,440 16,160 EXPENDITURES Current: Instruction 902, , ,964 21,530 Support Services: Students 617, , ,519 21,735 Instruction 28,609 28,977 22,846 6,131 General administration 37,291 38,279 32,251 6,028 School administration 176, , ,220 8,563 Central services 147, , , Operation & maintenance of plant 142, , ,481 29,955 Student transportation Other support services 501, ,676 2, ,422 Operation of non-instructional services: ' Community services operations Food services operations 15,852 15,852 7,178 8,674 Capital outlay 63, , ,853 10,972 TOTAL EXPENDITURES 2,633,200 2,610,806 2,314, ,610 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (349,251) (404,526) (91,756) 312,770 DESIGNATED CASH 349, ,526 (404,526) NET CHANGES IN FUND BALANCES $ $ (91,756) $ (91,756) RECONCILIATION TO GAAP BASIS Adjustments to revenues - Adjustments to expenditures 15,387 NET CHANGES IN FUND BALANCES $ (76,369) The accompanying notes are an integral part of the financial statements. G-13

14 Exhibit D-1 STATE OF NEW MEXICO STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES - AGENCY FUNDS Agency Funds ASSETS Cash and cash equivalents $ 1,709 TOTAL ASSETS $ 1,709 LIABILITIES Deposits held for others $ 1,709 TOTAL LIABILITIES $ 1,709 The accompanying notes are an integral part of the financial statements. G-14

15 Exhibit D-2 STATE OF NEW MEXICO SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUNDS Year Ended Balance, Balance, Julyl, June 30, 2016 Additions Deletions 2017 ASSETS Cash and cash equivalents $ 1,963 $ 29,711 $ (29,965) $ 1,709 TOTAL ASSETS $ 1,963 $ 29,711 $ (29,965) $ 1,709 LIABILITIES Deposits held for others $ 1,963 $ 29,711 $ (29,965) $ 1,709 TOTAL ASSETS $ 1,963 $ 29,711 $ (29,965) $ 1,709 The accompanying notes are an integral part of the financial statements. G-15

16 Schedule I STATE OF NEW MEXICO SCHEDULE OF COLLATERAL PLEDGED BY DEPOSITORY FOR PUBLIC FUNDS Fair/Par Description of Market Value Name of Depository Pledged Collateral Safekeeping Agent US Bank FNMA Pool Matures 06/01/2020 $ 496,206 US Bank US Bank FNMA Pool AE9341 Matures 11/01/ ,529 US Bank US Bank FNMA Pool AE9826 Matures 12/01/ ,822 US Bank US Bank FNMA Pool AJ8155 Matures 12/01/ ,663 US Bank 586,220 Total amount on deposit $ 463,809 Less FDIC (251,709) Total uninsured public money 212,100 50% collateral requirement 106,050 Total pledged 586,220 Over/(under) pledged $ 480,170 The accompanying notes are an integral part of the financial statements. G-16

17 Schedule II STATE OF NEW MEXICO SCHEDULE OF CASH AND CASH EQUIVALENTS Operating account (Including activity) $ 463,809 Total on deposit 463,809 Reconciling items (32,115) Reconciled balance at 431,694 Less activity funds (1,709) Balance per Exhibit A-1 $ 429,985 The accompanying notes are an integral part of the financial statements. G-17

18 STATE OF NEW MEXICO CASH RECONCILIATION Schedule III Operational Pupil Instructional Food Student Projects Account Transportation Materials Services Activity Account June 30, 2016 Cash (Book Balance) $ 461,317 $ - $ 8,850 $ 5,502 $ - $ 12,265 June 30, 2016 Payroll Liabilities (106,597).. (55). (14,107) June 30, 2016 Temporary Interfund Loans 49, (13,912) June 30, 2016 Adjustments/Reconciling Differences June 30, 2016 Cash Available to Budget 404,524-8,850 5,447 - (15,754) Revenue 2,222, , , Expenditures (2,314,196) - (17,434) (5,447) - (174,082) Permanent Cash Transfers/Reversions Adjustments Cash Available to Budget 312,768-3, Payroll Liabilities 26, Temporary Interfund Loans Adjustments/Reconciling Differences Cash (Book Balance) $ 339,704 $ $ 3,131 $ $ $ 524 Reconciliation to PED Cash Report Line 7 Cash (Book Balance) $ 339,704 $ $ 3,131 $ $ - $ 524 Payroll Liabilities (26,936) (524) Temporary Interfund Loans Audit adjustments and reclassifications Line 7 PED Cash Report * $ 312,768 $ $ 3,131 $ - $ - $ - * May Include rounding errors when compared to PED Cash Report G-18

19 STATE OF NEW MEXICO CASH RECONCILIATION Schedule III Direct Grants State State Local/State Public School Account Fund Flowthrough Fund Direct Account Account Capital Outlay June 30, 2016 Cash (Book Balance) $ 1,710 $ 237 $ $ $ $ June 30, 2016 Payroll Liabilities June 30, 2016 Temporary Interfund Loans June 30, 2016 Adjustments/Reconciling Differences (35,892) June 30, 2016 Cash Available to Budget 1, (35,892) Revenue Expenditures Permanent Cash Transfers/Reversions Adjustments 2,360-2,950 (2,950) 165,058 (129,166) Cash Available to Budget 4, Payroll Liabilities Temporary Interfund Loans Adjustments/Reconciling Differences - - _ - Cash (Book Balance) $ 4,070 $ 237 $ $ $ $ Reconciliation to PED Cash Report Line 7 Cash (Book Balance) $ 4,070 $ 237 $ $ $ $ Payroll Liabilities Temporary Interfund Loans Audit adjustments and reclassifications Line 7 PED Cash Report * $ 4,070 $ 237 $ $ $ $ - * May include rounding errors when compared to PED Cash Report G-19

20 STATE OF NEW MEXICO CASH RECONCILIATION Schedule III Capital Improve. Capital Improve. Capital Improve. Total HB33 SB 9 SB 9 Primary Government June 30, 2016 Cash (Book Balance) $ 60,845 $ 28,302 $ $ 579,028 June 30, 2016 Payroll Liabilities (120,759) June 30, 2016 Temporary Interfund Loans June 30, 2016 Adjustments/Reconciling Differences June 30, 2016 Cash Available to Budget 60,845 28, , Revenue 119,551 4,504 67,559 2,785, Expenditures (141,877) (4,504) (52,061) (2,841,717) Permanent Cash Transfers/Reversions - (28,302) 28,302 - Adjustments Cash Available to Budget 38,519-43, ,525 Payroll Liabilities... 27,460 Temporary Interfund Loans Adjustments/Reconciling Differences Cash (Book Balance) $ 38,519 $ $ 43,800 $ 429,985 Reconciliation to PED Cash Report Line 7 Cash (Book Balance) $ 38,519 $ $ 43,800 $ 429,985 Payroll Liabilities (27,460) Temporary Interfund Loans Audit adjustments and reclassifications Line 7 PED Cash Report * $ 38,519 $ $ 43,800 $ 402,525 * May include founding errors when compared to PED Cash Report G-20

21 STATE OF NEW MEXICO SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION II - FINANCIAL STATEMENT FINDINGS (CONTINUED) LA ACADEMIA DE ESPERANZA ÍCONTINUED) Internal Control over Financial Reporting (Material Weakness) (Continued) Management's Response: Management will establish an internal control structure to ensure that transactions are recorded in the correct year. Management will notify the audit team in advance of any transactions that were received after June 30 and need to be recorded as of June 30 to ensure the financial statements are correct. Capital assets will be added to the capital asset schedule when the purchase is received to ensure the schedule is current. Implementation: Ongoing Person Responsible: Business Manager Internal Control over Journal Entries (Compliance and Other Matters) Condition: During our review of journal entries we noted one journal entry, totaling $434, did not include adequate supporting documentation for the adjustment. Criteria: Every school district shall establish and maintain an internal control structure to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with GAAP. Context: See Condition. Cause: Lack of clear and sufficient documentation. Effect: Journal entry was authorized without proper documentation. Auditor's Recommendation: We recommend management ensure sufficient documentation exits prior to posting journal entries. Management's Response: Management will ensure journal entries have adequate supporting documentation. Implementation: Ongoing Person Responsible: Business Manager Page 318

22 STATE OF NEW MEXICO SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION II - FINANCIAL STATEMENT FINDINGS (CONTINUED) (CONTINUED) Bank Reconciliation (Compliance and Other Matters) Condition: During our review bank reconciliations, we noted bank reconciliations were not prepared for the student activity bank account during fiscal year Criteria: Per NMAC К states that all bank accounts shall be reconciled on a monthly basis and reviewed by the business manager. PASB Supplement 7 includes outstanding checks and deposits as components of a bank reconciliation. Context: See Condition. Cause: Management oversight Effect: Non-compliance with state statute. Auditor's Recommendation: We recommend that management prepare monthly bank reconciliations for all accounts. Management's Response: The student activity account was managed outside of the business office accounting system for many years. Los Puentes Charter School has since moved the accounting of the student activities fund into the main accounting system and main bank account. Bank account reconciliations will be performed on a monthly basis starting in Fiscal Year Implementation: Ongoing Person Responsible: Business Manager FRIENDS OF THE MONTESSORI FOUNDATION Internal Control Structure (Material Weakness) Condition: During our audit, we encountered the following issues: During our review of cash receipts, we noted approximately $25,427 of cash receipts in which the same individual recounted the cash deposit, approved the cash summary sheet and prepared the deposit. During our review of cash disbursements, we noted cashier's checks of $6, were obtained to issue payments. The Foundation was only able to provide support of cashier's checks of $5,902.27, which resulted in $ of cashier's check(s) that were not accounted for. During our review of cash disbursements, we noted that purchase orders were inconsistently prepared, which resulted in one over expenditure, one instance of the purchase proceeding purchase order and one instance in which a purchase order was not prepared. Page 319