Professional Documents
Culture Documents
Meeting Agenda
The purpose of our exit conference is to share the results of our independent audit and to provide a forum for open discussion. We are pleased to review our draft reports and discuss other topics as listed below with you. Accountability audit report Financial statement audit report and other required communications Federal grant compliance audit report Recommendations not included in our audit reports Status of prior audit recommendations Agreed-upon services Report publication Your next scheduled audit Customer service survey
Preliminary audit results and recommendations were shared in detail with District management and personnel as they were developed during the audit. We would like to thank staff for their cooperation and timely response to our requests during the audit. We take seriously our responsibility of serving citizens by promoting accountability, fiscal integrity and openness in state and local government. We believe it is critical to citizens and the mission of the District that we work together as partners in accountability to prevent problems and constructively resolve issues. As such, we encourage your comments and questions.
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government. We believe it is critical to citizens and the mission of the District that we work together as partners in accountability to prevent problems and constructively resolve issues. As such, we encourage your comments and questions.
Accountability Audit
Report
Our draft accountability report summarizes the results of our risk-based audit work related to safeguarding of public resources and legal compliance. The report does not include any findings.
Opinion Unit
Statement I Schedu le
Description
Income Statement
A sample test of all Capital Project fund expenditures indicated the District recorded $5,151,101 in the wrong year. These expenditures coded to FY2012 should have been coded to FY2011 . Therefore the Capital Project expenditures were understated by this amount.
Known
Report
Our draft financial statement report includes our opinion on the District's financial statements. It also includes our report on internal control over financial reporting and on noncompliance and other matters as required by Government Auditing Standards. An unqualified opinion will be issued on the financial statements , which means that we believe they are presented fairly, in all material respects. The following deficiencies in internal control over financial reporting were identified and reported as a finding : The District should improve its internal controls over accounting and financial statement preparation to ensure accurate and complete reporting. _ v\o..,J, i~"'"r,,-\ c.of\\-\-ro \
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No instances of noncompliance were identified that could have a direct and material effect on the determination of financial statement amounts.
Exit Items
We have provided the following exit recommendations for management's consideration. They are not referenced in the aud it report . Title 1 grant - adeguate yearly progress Schools that do not meet Adequate Yearly Progress (AYP) going into FY2011 must send a letter to parents of students which , among other things, states how long the schools have been so identified as not making AYP in the Title 1 grant (CFDA 84.010/389). We noted that Hawthorne Elementary letters did not state how long the school has not made AYP. We recommend the District include the number of years which the school has not made AYP on the lelters sent to parents in order to meet the grant requirements.
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Special Education grant - time and effort Federal guidelines require Districts to ensure monthly time and effort certifications are submitted for any employee charging time to more than one cost object ive, such as the Special Education grant (CFDA 84.027/173/391 /392) and another unrelated program . During fiscal year 2011 the District paid two employees $59,000, for work in Special Education. These employees also worked in another program , requiring the District to obtain monthly time certifications . According to federal guidelines, monthly certifications for actual time worked on the Special Education program must be reconciled quarterly to the budgeted hours actually paid by the grant. We found the District did not receive monthly time certifications from these employees or reconcile the actual time to the budgeted time quarteriy for September, October, November and December until February and March of 2011 . We recommend the District improve internal controls to ensure the monthly timesheets and quarterly reconcil iations are performed timely and documented to comply with federal requirements (Circular A-8?). Title 1 grant - allowable costs During our review of Title 1 (84.010/389) expenditures, we noted that the District spent $31,352.68 in non-payroll related Title 1 ARRA funds during the 2011 fiscal year. We identified one transact ion totaling $36.70 which was for an unallowable purpose (the District gave science kits away in a raffle that were purchased with Title 1 funds) . We recommend the District verify items purchased with federal funds are used for allowable purposes according to the grant requirements. Federal reimbursement review Requests for reimbursements of Federal funds for the following grants are not reviewed for accuracy before they are subm itted for reimbursement: Education Jobs Fund CFDA 84.318/84.3 86 Special Education Cluster CFDA 84.027/84.173/84.391/84.392 Title I grants.CFDA 84.010 /84.389
If reimbursements are submitted inaccurately the District could be overpaid or underpaid without knowing. We recommend the District include a review of reimbursements by someone other than the person that prepares them to ensure accuracy. Apportionment - transportation ridership reporting During our review of the transportation ridership reporting, we noted errors in reporting for five routes. These errors were caused by incorrect calculations of the average ridership in the week , or by inconsistent reporting of data from the Driver's count logs to OSPI. In addit ion, the District did not maintain adequate support to tie specific students from the Public Transportation ridership log sheets to specific State Route numbers.
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We recommend the District improve its internal controls to ensure accurate ridership data is submit to aSPI and the District retain support to show which students using public transportation were reported by the State Route.
Segregation of duties (ASB Treasurer) Alternative Learning Education Restrictively endorse checks (Everett High School) Fundraising for charitable organizations
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*Disbict management has determined it will take responsibility for any possibility of loss in this area. We subsequently will discontinue our recommendations about this area.
bJ Exit document
Additional Services
Comprehensive Annual Financial Report (CAFR)
In addition to our audit, we performed procedures at your request related to the additional information included in the District's CAFR. A letter certifying the additional review was provided to the District on April 18, 2012.
Concluding Comments
Report Publication
Audit reports are published on our website and distributed via e-mail in an electronic .pdf file. We also offer a subscription service that allows you to be notified by email when audit reports are released or posted to our website. You can sign up for this convenient service at: www.sao.wa.gov/EN/News/Subscriptions
The estimated cost for the next audit based on the current billing rate is $63,666 plus traver expenses. This preliminary estimate is provided as a bUdgeting tool and not a guarantee of final cost.