Audit of. Royal Palm Beach High School Cheerleading and ESE Field Trip Accounts

Transcription

1 Audit of Royal Palm Beach High School Cheerleading and ESE Field Trip Accounts April 13, 2007 Report

2 Audit of Royal Palm Beach High School Cheerleading and ESE Field Trip Accounts Table of Contents Page PURPOSE AND AUTHORITY 1 SCOPE AND METHODOLOGY 1 BACKGROUND 2 CONCLUSIONS 2 1. $12,795 in Cheerleading Program Monies Unaccounted For 2 2. $2,128 in ESE Field Trip Monies Unaccounted For 3 APPENDIX Management s Response 5

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: April 13, 2007 SUBJECT: Audit of Royal Palm Beach High School Cheerleading and ESE Field Trip Accounts PURPOSE AND AUTHORITY In response to request of the incoming Principal of Royal Palm Beach High School, we have audited the school s Cheerleading and ESE Field Trip Accounts for the period July 1, 2004, through September 7, The primary objective of the audit was to determine the causes for discrepancy between the monies collected from students and the monies deposited for these two activities. SCOPE AND METHODOLOGY The audit was performed in accordance with Government Auditing Standards by Susan Miller from August 1, through September 23, 2005, and included: Examining the General Ledger and bank statements. Reviewing cash receipts and Monies Collected Reports. Confirming parent payments. Interviewing school 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 staff during the audit. The final draft report was presented to the Audit Committee at its April 13, 2007, meeting. 1

4 BACKGROUND On August 1, 2005, during the school s annual audit, the school s former bookkeeper informed us of a concern related to an April 2005, Field Trip taken by an Exceptional Student Education (ESE) class to Tampa and Orlando. The bookkeeper indicated that not all the trip monies collected from students were deposited into the school s Internal Funds. On September 13, 2005, the Principal requested that the Cheerleading program s fee collections be reviewed. A parent indicated that the Cheerleading sponsor required all program fees be paid in cash. The parent also stated that the receipts issued to her were not District s prenumbered receipts; instead, they were generic receipts bought from a store. Conclusions Referred to School Police. Audit conclusions for the Field Trip and Cheerleading program were referred to School Police on September 12, 2005, and November 11, 2005, respectively, for further investigation. After interviews with staff and review of receipts, Monies Collected Reports, and the General Ledger, police investigation concluded that $602 and $1,000 collected by the Cheerleading sponsor and the ESE teacher respectively were not turned in to the school for deposit. Moreover, the ESE teacher admitted that all the records related to the Field Trip were destroyed. While there was sufficient evidence for administrative review for both instances, it was not clear where the money actually went; and a successful prosecution for Grand Theft could not be warranted. School Police investigation was completed on March 21, 2006, and the results were referred to Employee Relations for administrative review. Employee Relations completed the administrative review on March 13, The Cheerleading sponsor resigned from the District in August 2006; and discipline was issued to the ESE teacher on March 13, CONCLUSIONS The audit produced the following major conclusions: 1. $12,795 in Cheerleading Program Monies Unaccounted For As indicated by a parent, generic receipts were issued by the Cheerleading sponsor for fee collection. Moreover, only cash was allowed for payment, instead of checks or money orders. Review of files indicated that both the generic receipt books and records were missing. However, we were able to locate and review a computer database file created by the former Cheerleading sponsor. According to the database file, the Cheerleading program had a total of 28 students. Total program fees due from students were $23,680. However, records show that only $10,885 was deposited in to the school s Internal Funds, with an unexplained shortfall of $12,795. 2

5 Based on interviews and payment records provided by eight parents, we found that $1,890 in payments from five students were missing. Student Payment Date Amount Payment form Student 1 6/15/2005 $200 Cash Student 2 5/9/2005 7/18/ Cash Cash Student 3 1/10/2005 6/23/ Cash Check Student 4 5/19/ Money Order Student 5 6/10/ Money Order Total $1,890 The analysis of District s prenumbered receipts also revealed that seven receipts, totaling $140, were not deposited in the school s Internal Funds. Receipt Date Receipt # Student Amount Payment form 4/5/ Student 6 $20 Cash 4/5/ Student 7 20 Check 4/6/ Student 8 20 Check 4/6/ Student 9 20 Check 4/14/ Student Cash 4/14/ Student Cash 4/14/ / Student Cash Total $140 Management s Response: We concur with your audit of the Cheerleading and ESE Field Trip Accounts. As you are aware, we have taken all necessary steps to prevent any incident like this from reoccurring. 2. $2,128 in ESE Field Trip Monies Unaccounted For Based on the April 13, 2005, sent by the ESE teacher to school staff, 39 students attended the Field Trip to Tampa and Orlando during the period of April 14 16, Since each student was to pay $282 to attend the trip, the estimated total collection would be $10,998 (39 x $282). The review of records for receipts written by the ESE teacher for the Field Trip indicated that $9,654 was collected; therefore, total collection had an unexplained shortage of $1,344. Additionally, of the $9,654 indicated as collections for the trip, only $8,870 was deposited into the school s Internal Funds. The remaining $784, which was evidenced by six receipts, was missing. 3

6 Estimated collections (39 students x $282) $10,998 Total receipts written 9,654 Unexplained shortage $1,344 Six receipts not deposited 784 Total monies missing $2,128 Payment records indicated that of the 39 students listed as attending, eight students had no record of payments; 14 students made partial payments; and payments for 10 students who did not attend had no record of refund. According to the ESE teacher, students without payment records were those receiving fee waivers. However, no records were maintained for the waivers. Management s Response: We concur with your audit of the Cheerleading and ESE Field Trip Accounts. As you are aware, we have taken all necessary steps to prevent any incident like this from reoccurring. End of Report 4

7 Appendix Management s Response 5