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STATE OF DELAWARE OFFICE OF AUDITOR OF ACCOUNTS: R. THOMAS WAGNER, JR., CFE, CGFM, CICA "AubiTor oF ACCOUNTS 302.739.5055 THOMAS. WAGNER@STATE.DE.US June 21,2016 ‘The Honorable Ken Simpler State Treasurer Office of the State Treasurer 820 Silver Lake Boulevard, Suite 100 Dover, DE 19904 Dear Treasury fafa. ‘As you mayknow, my office reviewed the use of petty cash accounts at various charter schools earlier this year, ‘The State’s petty cash policy, as set forth in the State of Delaware's Budget and Accounting Manual (BAM), states that once the Division of Accounting approves the establishment of an organization's petty cash account, “...the Office of the State Treasurer (OST) must approve the opening of the bank > account. At the onset of our engagement, your office provided a list of three charter schools that obtained the appropriate approval to open an external bank account. However, none of these charter schools were the five we selected for review. Officials for all five charter schools we reviewed (The Charter Schoo! of Wilmington, Delaware Academy of Public Safety and Security, Delaware Military Academy, Odyssey Charter School, and Sussex Academy of Arts and Seiences) stated they were not aware of the regulations surrounding the approval process for opening a petty cash account. We wanted to make you aware of this issue for your consideration. We also have concerns that the BAM only requires this level of oversight for petty cash accounts and not for other external bank accounts for additional purposes. "BAM, Section 7.12.1, v4.26 401 FEDERAL STREET » TOWNSEND BUILDING SUITE ONE * DOVER, DE 19901 MAIN OFFICE: 302.739-4241 FRAUD HOTLINE: 1-800-55-FRAUD \Visrt OUR WEBSITE TO VIEW, DOWNLOAD, OR PRINT AUDIT REPORTS AND OTHER INFORMATION HITP:// AUDITOR. DELAWARE.GOY ‘Treasurer Simpler Page 2 June 21, 2016 Please feel free to contact me at (302) 739-5055 with any further questions you may have. Sincerely, Thomas Wagner, Jr, CGFM, CICA, CFE State Auditor ce: Ms. Nohora Gonzalez, Deputy State Treasurer

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