Audit of. Western Pines Middle School s Cheerleading Program
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1 Audit of Western Pines Middle School s Cheerleading Program September 12, 2008 Report
2 Audit of Western Pines Middle School s Cheerleading Program Table of Contents Page PURPOSE AND AUTHORITY 1 SCOPE AND METHODOLOGY 1 BACKGROUND 2 CONCLUSIONS 2 1. Cheerleading Revenues and Expenses Not Accounted For in Internal Funds 2 2. Unauthorized Purchases 3 APPENDIX Management s Response 4
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: September 12, 2008 SUBJECT: Audit of Western Pines Middle School s Cheerleading Program PURPOSE AND AUTHORITY In response to the Principal s request, we have audited Western Pines Middle School s Cheerleading Program for July 1, 2007, through March 3, The primary objective of the audit was to determine whether the program s revenues and expenditures were properly accounted for in the school s Internal Funds. SCOPE AND METHODOLOGY The audit was performed in accordance with Government Auditing Standards by Barbara Reynolds during February and March 2008, and included: Reviewing information and records kept by the Cheerleading sponsor. Examining the General Ledger, Monies Collected Reports, and disbursement documentation for the Cheerleading Program. 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 school staff during the audit. The final draft report was presented to the Audit Committee at its September 12, 2008, meeting. 1
4 CONCLUSIONS 1. Cheerleading Revenues and Expenses Not Accounted For in Internal Funds The review of accounting records maintained by the school and documentation provided by the cheerleading sponsor (sponsor) indicated that the sponsor collected a total of $20, in program revenues of which $6, was accounted for in the school s Internal Funds. As a result, $13, in revenues collected by the sponsor did not go through the school s Internal Funds. Moreover, a total of $13, in related expenses disbursed by the sponsor did not go through the school s Internal Funds either. Apparently, these expenditures were paid for with the revenues collected. Cheerleading Program s Revenues and Expenditures During July 1, 2007, through March 3, 2008 Revenues Expenditures Did Not Go Went Through Paid Through Fundraising Activities Through Total Internal Funds the Sponsor Internal Funds Program Advertisement $2, $ $3, Program Advertisement * - Basketball Turkey Grams Carwash Competition Fees , Coupon Books Sales 1, , Camp Fees 4, , , Uniforms 8, , , Gym Rentals ,025.00** Total $6, $13, $20, $13, Sources: The school s accounting records and documentation provided by the sponsor. * Neither the school nor the sponsor maintained collection records for this fundraiser. ** No invoices/receipts for these expenses. Recommendation Money collections should be administered in accordance with DOE Rules (Department of Education s Financial and Program Cost Accounting and Reporting for Florida Schools, Chapter 7) and District Bulletin #P CAO/COO. Specifically, Monies collected must be turned in daily to the bookkeeper or the drop safe, and be deposited within five business days. Fundraisers should be properly documented and pre-approved by the Principal to ensure that the fundraising activities are consistent with School Board Mission. 2
5 2. Unauthorized Purchases The Cheerleading Uniform Account (# ) had a deficit of $ for School Year As a result, the Principal informed the sponsor that the school would not sponsor the Cheerleading Uniform Sales for School Year Students who participated in the program would have to order their own uniforms directly from the vendor. Contrary to the Principal s direction, the sponsor collected a total of $8, in uniforms sales revenue and purchased a total of $8, in uniforms, under the school s name, during June 2007, and February None of these purchases was approved by the Principal, and the purchased items were delivered to the sponsor s home address. As of February 28, 2008, the sponsor had paid a total of $7, to the vendor, with an unpaid balance of $ Invoice # Invoice Date Invoice Amount Unpaid Balance As of February 28, /13/2007 $7, $ /20/ /10/ /6/ Total $8, $ Recommendation Staff s unauthorized use of the school name for purchases can subject the school to unwarranted debts and liabilities. The school should monitor closely all purchases, sponsored by staff members or parents, in the name of the school. All fundraisers and purchases should be fiscally feasible, approved by the Principal, and consistent with School Board mission. Referral to Employee Relations Department. Due to noncompliance committed by staff, the audit conclusions were referred to the Employee Relations Department on March 26, 2008, for further review. On May 8, 2008, Employee Relations Department completed its investigation and the conclusions were referred back to the school principal for necessary actions. Management s Response: The principal indicated that the teacher will not continue in the capacity as cheerleading sponsor. (Please see page 4.) End of Report 3
6 Appendix Management s Response 4
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