Consolidated Audit Report on Student Activity Funds

Transcription

1 Consolidated Audit Report on Student Activity Funds Internal Audit Services Volume 2

2 Memorandum Internal Audit Services TO: Audit Committee School Board of the City of Richmond, Virginia FROM: Debora R. Johns, CGAP Chief of Internal Audit DATE: December 14, 2009 SUBJECT: Volume 2 --Summary Audit Report on the Review of Student Activity Funds Fiscal Year 2009 Fund s Compliance Audits for Selected Schools This document is a consolidated report on Fiscal Year Ended June 30, 2009 student activity fund balances and it also contains the compliance audits of 28 schools Our audits disclosed that the financial statements were fairly stated and that the schools were generally compliant with established policies and procedures. However, improvement is needed in timely deposits, supporting documentation, collections, purchase orders, and administrative review. The results of the compliance audits were discussed with school principals and finance officers. We included management s response to our audit observations in the reports. We appreciate the cooperation provided to us and management s positive response to our recommendations. If you have any questions or need additional information, please contact me. My telephone number and address are shown below. 301 North Ninth Street Richmond, VA Telephone: (804) Fax: (804) djohns@richmond.k12.va.us 2

3 Richmond Public Schools Student Activity Fund Audits Table of Contents Student Activity Fund s..4 List of Principals..8 Compliance Audits...9 Armstrong...12 Bellevue...17 Binford. 20 Blackwell. 24 Broad Rock Brown Cary Chimborazo Clark Springs.. 47 Continuing Education...51 Fairfield Court...57 Fisher Ginter Park Greene Holton Huguenot Mason Munford Oak Grove Open..112 Redd..117 Richmond Community RTC-North RTC-South Stuart Summer Hill Swansboro 163 Wythe

4 STUDENT ACTIVITY FUND BALANCES AS OF JUNE 30,

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8 LIST OF PRINCIPALS Listed below are the current principals of the schools reported herein: Work Location Number School Name Name of Principal 5301 Armstrong Dimitric Roseboro 4200 Bellevue Sherry Wharton-Carey 5310 Binford Peter Glessman 4201 Blackwell Conrad Davis III 4202 Broad Rock Carmen Rush 5319 Brown Denise Lewis 4204 Cary Brenda Phillips 4205 Chimborazo Cheryl Burke 4206 Clark Springs Cynthia Tedder 6325 Continuing Education Estelle Jones 4207 Fairfield Court Craig Mayo 4208 Fisher Charlene Brooks 4211 Ginter Park Cathy Randolph 4212 Greene Linda Simms 4230 Holton David Hudson 5302 Huguenot Howard Hopkins 4215 Mason Sandra Bynum 4217 Munford Gregory Muzik 4219 Oak Grove Jannie Laursen 5309 Open Candace Veney-Chaplin 4221 Redd Regina Farr 5307 Richmond Community Thomas Beatty 5318 RTC-North N. Mauricee Holmes 5320 RTC-South N. Mauricee Holmes 4224 Stuart Jennifer Moore 4223 Summer Hill Indira Williams 4226 Swansboro Mary Pierce 5306 W yt h e Willie Bell Jr. 8

9 Compliance Audits for Selected Schools 9

10 INTERNAL AUDIT SERVICES AUDIT REPORT Purpose of Audit We have audited cash receipts, disbursements, and account balances of student activity funds for the period beginning July 1, 2005 and ending June 30, The collected funds and related disbursements were for extracurricular school activities such as athletics, clubs, fund raising, and class trips. These accounts, books, and records are the responsibility of the principal. Our responsibility is to advise the superintendent and principals of the overall condition and management of the student activity funds. We are also responsible for testing compliance with provisions of applicable laws and regulations. Scope of Audit Basis of Accounting We conducted our audits in accordance with the International Standards for the Professional Practice of Internal Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the accounts, books, and records of the district schools are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accounts and records of the funds are maintained on a cash basis. Cash receipts and transfers in are recorded when received and cash disbursements and transfers out are recorded when paid. Therefore, receivables and payables, inventories, and accruals are not reflected, and these statements do not present the overall financial position or results of operations. This space left intentionally blank 10

11 Audit Report on Student Activity Funds Page 2 Conclusion Compliance and Internal Controls The financial statements referred to above presents fairly, in all material respects, the cash receipts, disbursements, transfers and account balances of the student activity funds of the schools for the fiscal years ended June 30, 2007, 2008 and June 30, The ending balances for the audited schools are shown on the statements of accountability included in this report. In planning and performing our audit of the financial statements of the activity funds, we considered the internal control structure in order to determine our auditing procedures for expressing an opinion on the financial statements and not to provide assurance on the internal control structure. We have not considered the internal control structure since the date of this report. During our audit, we noted certain matters involving the internal control structure and other operational matters that are presented for your consideration. These comments and recommendations, all of which have been discussed with the appropriate members of management, are intended to improve the internal control structure or result in operating efficiencies and are summarized by school. Audit Observations and Management s Response Exit Conference Please refer to pages 12 to 176 to review our audit observations and management s response. The results of audit were discussed with the school principals and finance officers. Acknowledgements We appreciate the excellent assistance and cooperation provided us during the audits by the principals and finance officers. We would be happy to discuss this report with you at your convenience. 11

12 Armstrong High School Type of Account Fiscal Year 2008 Checking $117, Total $117, Principal: Dimitric Roseboro 12

13 Armstrong High School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Receipts The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $ and the teacher collected the money over a period of 4 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Management s Response: I concur. Deposits We found 6 instances whereby funds were not deposited on a daily basis. For example, $50.00 was held in the school vault for 8 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I concur. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Mr. Dimitric Roseboro, Principal and Bonnie Harden, Finance Officer. We would be happy to discuss this report with you at your convenience. 13

14 Armstrong High School Statement of Accountability School Year Ended June 30, 2008 Account Description Beginning 7/1/07 Receipts Disbursements Ending 6/30/08 BOYS BASKETBALL $0.00 $0.00 $0.00 $0.00 FOOTBALL BOYS TRACK SOFTBALL GIRLS BASKETBALL J V CHEERLEADERS GIRLS TENNIS GIRLS TRACK TEAM ATHLETIC CLUB ACCOUNT 3, , ADMINISTRATION 55, , , , GYM LOCKS GYM SUITS , , TOWELS DOUBLE DUTCH JUMP ROPE PUBLICATION ANNUAL , , NEWSPAPER WRESTLING TEAM ROOM ROOM JUNIOR CLASS FRESHMEN/SOPHMORE CLASS SOPHMORE CLASS CLASS OF CLASS OF , , , HISTORY DEPARTMENT , , MUSIC VOCAL MATHEMATICS DEPT SCIENCE DEPARTMENT PHYSICAL ED DEPARTMENT VOCATIONAL EDUCATION ADAPTS CLUB ART CLUB BASEBALL , , BOYS BASKETBALL CLUB

15 Armstrong High School Statement of Accountability School Year Ended June 30, 2008 Account Description Beginning 7/1/07 Receipts Disbursements Ending 6/30/08 BOYS TENNIS CLUB BOYS TRACK CLUB J V BASKETBALL CLUB CAREER ASSO CHEERLEADERS CHOIR CLUB C.E. E DECA DRAMA CHEERLEADERS CLUB FORENSIC & DEBATE F. B. L. A , , FRENCH CLUB F. H. A ARMSTRONG LEADERSHIP GIRSLS BASKETBALL CLUB HERO HISTORY CLUB HOMECOMING NATIONAL HONOR SOCIETY INDUSTRIAL ARTS MAJORETTES MARCHING BAND ROBOTICS CLUB SCIENCE SCIENCE CLUB SPANISH CLUB SPMT CLUB STUDENT COUNCIL VA TECHNOLOGY ASSOC CAG (CIT. ADV. GROUP) , MU ALPHA THETA SECME RENAISSANCE

16 Armstrong High School Statement of Accountability School Year Ended June 30, 2008 Beginning 7/1/07 Receipts Ending 6/30/08 Disburseme Account Description nts CARDS HOMEROOM ATHLETIC BOOSTERS BAND BOOSTERS G. E. COLLEGE BOUND ECMC SCHOLARS PROGRAM RED CROSS DARRYL 1, , AHS DONATION SCHOOL WIDE PROJECT COMMUNITY OF CARING T SHIRTS R US SECURITY ID FEES DEAR PROGRAM CLASS OF BOOK FAIR FIELD TRIPS GENERAL INTEREST ARMSTRONG PTA DAMAGED SCHOOLPROPERTY DAMAGED & LOST BOOKS LIBRARY FEES & FINES TRANCRIPTS EVENING GRADUATION CANDY & SNACK VENDING FOUNDATION FOR EXCELLENCE VENDING , , POSTAGE PRINCIPAL EXPENSE-OTHER (372.65) 16, , (451.97) FRESHMAN TRANSITION $69, $155, $107, $117,

17 Bellevue Elementary School Type of Account Fiscal Year 2008 Checking $6, Total $6, Principal: Sherry Wharton-Carey 17

18 Bellevue Elementary School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Receipts Disbursements The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Deposits We found 2 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for 5 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Supporting Documentation Our review of cash disbursements disclosed 19% of the cash disbursements sampled lacked some form of supporting documentation. Invoices and expenditure vouchers were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Purchase Orders A review of $ and over transactions disclosed that the school purchased $1, of items. This amount represents 1 transaction. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases $ or over be entered on a purchase order and submitted to the Division of Purchasing. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. Exit Conference Management s Response Acknowledgements The results of audit were discussed with the school principal and finance officer. The principal concurs with the results of the audit. We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Sherry Wharton-Carey, Principal and Zelma Lee, Finance Officer. We would be happy to discuss this report with you at your convenience. 18

19 Bellevue Elementary School Statement of Accountability For the Year Ended June 30, 2008 Account Beginning Total Total Ending Names 7/1/2007 Receipts Disbursements 6/30/2008 5th Grade Closing $ $0.00 $19.37 $ Bellevue T Shirts Christmas Open House Red Cross Donations End of the Year Picnic Adopt a Rabbit Special Events (0.00) Lego Tournament Friendship Committee Field Trips General , , Fundraiser , , General Fund 2, , , , Weekly Reader PTA Donation School Store Lost Textbooks Library Fees & Fines Book Fair , , Drink Machine Postage (17.00) Principal Exp. Other (2,491.15) 6, , (1,121.95) Total $2, $26, $22, $6,

20 Binford Middle School Type of Account Fiscal Year 2008 Checking $20, Total $20, Principal: Peter Glessman 20

21 Binford Middle School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Exit Conference Acknowledgements The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Dr. Juanita Nicholson, Principal and Debra Berkley, Finance Officer. We would be happy to discuss this report with you at your convenience. 21

22 Binford Middle School Statement of Accountability School Year Ended June 30, 2008 Beginning Ending Disburse Account Description 7/1/2007 Receipts ments 6/30/2008 Gym locks $1, $ $0.00 $1, Gym suits Annual Pub Eighth Grade Class Boys Band Club , , Garden Club Boys Basketball Club Cheerleaders Choir , , DECA FBLA , , FCCLA , , Jr. National Honor Science Student Council TSA Orchestra , , National Jr. Art Honor Red Cross Parenting Classes Donation Part in Art Tutorial Program Donation Faculty Fund Linwood 1, Book Fair Field Trips , , , Fund Raising 3, , , , General Account Insurance 1, , Interest 1, , Weekly Readers I.D. Badges

23 Binford Middle School Statement of Accountability School Year Ended June 30, 2008 Beginning Ending Disburse Account Description 7/1/2007 Receipts ments 6/30/2008 Dam. & Lost Textbooks Lib. Fees & Fines Infirmary Total $17, $73, $70, $20,

24 Blackwell Elementary School Type of Account Fiscal Year 2007 Fiscal Year 2008 Checking $15, $20, Totals $15, $20, Principal: Conrad Davis III 24

25 Blackwell Elementary School A July 1, 2006 through June 30, 2008 Audit Findings Good Internal Controls Receipts Disbursements Exit Conference Management s Response Acknowledgements The principal has established and maintains an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Collections We found a couple of teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $34.00 and the teacher held the monies for 5 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Purchase Orders A review of purchases in excess of $ disclosed that the school purchased $1, of items. This amount represents 1 transaction. The principal purchased a DVD player and camcorder. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases $ or over be entered on a purchase order and submitted to the Division of Purchasing. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. The results of audit were discussed with the school principal and finance officer. See Appendix B. We appreciate the excellent assistance and cooperation provided us during the audit by Mr. Conrad Davis, Principal and Wendy Lucas, Finance Officer. We would be happy to discuss this report with you at your convenience. 25

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27 BLACKWELL ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2007 Beginning Ending s Account Description 7/1/2006 Receipts Disbursements 6/30/2007 Student Bank $88.40 $0.00 $0.00 $88.40 SCA Community Carnival CIS Grant Harp Tutorial Hand Bellss Book Fair Central Fidelity Field Trips Fundraising General Principal's Expense Theater Weekly Readers Library Fees & Fines Printing Charges Bookstore Postage Other Expense TOTALS $12, $34, $30, $15,

28 BLACKWELL ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 Global Impact $0.00 $4, $ $3, Target Gramt , , Hull Street Merchants Student Bank Children's Inc SCA , , Community Carnival CIS Grant Harp Tutorial 1, , Hand Bells Book Fair Central Fidelity Field Trips 3, , , , Fundraising , , , General 6, , Principal's Expense 3, , , , Theater Weekly Readers Library Fees & Fines Printing Charges Bookstore Postage Other Expense TOTALS $15, $32, $28, $20,

29 Broad Rock Elementary School Type of Account Fiscal Year 2006 Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $9, $7, $7, $8, Totals $9, $7, $7, $8, Principal: Carmen Rush 29

30 Broad Rock Elementary School A July 1, 2005 through June 30, 2009 Audit Findings Internal Controls Management Management Response The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for their efforts in managing the funds. However, we found instances whereby improvement is needed in the receipt and disbursement process. Separation of Duties The same individual performs key duties. The administrative assistant receives funds, write receipts, and deposits funds. Key duties such as authorizing, approving, recording transactions and making payments should be assigned to different individuals. We recommend that the principal assign a different employee to make the deposit. The effectiveness of the internal control system will be maximized and the risk of loss will be minimized. I concur. We welcome your input in this matter. In response, the assistant principal will be responsible for collecting all funds, while the administrative assistant will be responsible for making all deposits. Receipts Deposits We found one instance whereby funds were not deposited on a daily basis. For example, $ was held at the school for 35 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. 30

31 Broad Rock Elementary School A July 1, 2005 through June 30, 2009 Management Response Disbursements Management Response Historically, deposits at Broad Rock have always been prompt. Our school secretary assured me that checks have never been held at Broad Rock. It is difficult to accept that the major gap from the date of issuance to the date of deposit has been adjudicated as a Broad Rock responsibility As a result, all future reimbursement checks received through U.S. mail at Broad Rock will be stamped that day and signed by the assistant principals and school secretary. Supporting Documentation Our review of cash disbursements disclosed 22% of the cash disbursements sampled lacked supporting documentation. Receipts and expenditure vouchers were not available for review. The finance officer stated that principal does not complete expenditure vouchers. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. All expenditure vouchers and receipts must be approved by the principal. I concur. The statement that the principal does not complete expenditure vouchers is inaccurate. If the voucher were presented, I would certainly sign off on them like I sign off on any other document presented by the finance officer. If every check written is to be accompanied by an expenditure voucher, then that is what will be done in the future. Exit Conference Acknowledgements The results of audit were discussed with the school principal, assistant principal, finance officer, and administrative assistant on September 18, We appreciate the excellent assistance and cooperation provided us during the audit by Ms. Carmen Rush, Principal and Teya Green, Finance Officer. We would be happy to discuss this report with you at your convenience. 31

32 Broad Rock Elementary School STATEMENT OF ACCOUNTABILITY School Year Ended June 30, 2006 Beginning Ending s Disburse- Account Description 7/1/2005 Receipts ments 6/30/2006 Student Council Donations Book Fair School Pictures Field Trips General 6, , , Scholastic 1, , Damage & Lost Textbooks Library Fees/Fines Postage , , (70.48) TOTAL $8, $5, $4, $9,

33 Broad Rock Elementary School STATEMENT OF ACCOUNTABILITY School Year Ended June 30, 2007 Beginning Ending s Disburse- Account Description 7/1/2006 Receipts ments 6/30/2007 Student Council Donations Book Fair School Pictures Field Trips , , General 7, , , Scholastic 1, , Damage & Lost Textbooks Postage (97.87) Principal's Expense (70.48) 6, , TOTAL $9, $10, $12, $7,

34 Broad Rock Elementary School STATEMENT OF ACCOUNTABILITY School Year Ended June 30, 2008 Beginning Ending s Disburse- Account Description 7/1/2007 Receipts ments 6/30/2008 Student Council Donations Book Fair School Pictures Field Trips , , General 4, , , , Scholastic 1, , Damage & Lost Textbooks Postage (97.87) (97.87) Principal's Expense , , TOTAL $7, $6, $6, $7,

35 Broad Rock Elementary School Statement of Accountability School Year Ended June 30, 2009 Beginning Ending s Disburse- Account Description 7/1/2008 Receipts ments 6/30/2009 Student Council Donations Book Fair School Pictures Field Trips , , , General 5, , , , Scholastic 1, , Damage & Lost Textbooks Postage (97.87) Principal's Expense , , TOTAL $7, $10, $9, $8,

36 Lucille Brown Elementary School Type of Account Fiscal Year 2008 Checking $11, Totals $11, Principal: Denise Lewis 36

37 Lucille M. Brown Middle School A For School Year Ended June 30, 2008 Audit Findings Management Administrative Review We found a few instances of administrative procedures not being followed (see receipts, disbursements, and accounting records sections of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. We recommend that the principal review the student activity fund records on an unscheduled basis. For example, the principal should verify receipts to deposits, review the contents of the safe or vault, and determine whether teachers are holding monies. Signature Authority Three of 37 checks reviewed only contained the signature of the principal. We recommend that all checks include the signature of at least two individuals. The principal should assign another individual to sign checks and acquire new signature cards from the bank. The Clerk of the School Board must approve the new signature card. Receipts Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $ and the teacher held the monies for 4 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Deposits We found 11 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for 7 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. 37

38 Lucille M. Brown Middle School A For School Year Ended June 30, 2008 Disbursements Supporting Documentation Our review of cash disbursements disclosed 30% of the cash disbursements sampled lacked supporting documentation. Receipts to support the disbursements were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Purchase Orders A review of purchases in excess of $ disclosed that the school purchased $1, of items. This amount represents 1 transaction. For example, the principal purchased cheerleading uniforms. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases over $ be entered on a purchase order and submitted to the Division of Purchasing. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. Deficit Account s Some sponsor(s) were allowed to disburse funds in excess of their account balance. During the school year, a deficit may exist in an account, but should be cleared by the reimbursement of funds. The following accounts had deficit account balances at year-end: Account Name Amount 8 th Grade Class ($1,462.98)* Music-Instrumental ($41.33)* Cheerleaders ($93.59)* *The deficits were eliminated after the audit had been completed but prior to the year end balances being submitted. Therefore, the deficits are not on the statement of accountability included with the report. Deficit balances are not allowed in student activity funds. Deficits result in account holders with positive balances not having full access to their funds. We recommend that the principal eliminate all deficit account balances. An analysis of each deficit account must be performed and a plan of action developed to eliminate the deficit. The principal may consider all inactive accounts. However, the sponsor for the inactive account must be consulted before transfers are made. 38

39 Lucille M. Brown Middle School A For School Year Ended June 30, 2008 Accounting Records School Board Fees and Fines All school board fees and fines for damaged property and textbooks are collected at the school and submitted to the Department of Finance in the month of June. The balances for school board collections are as follows: Account Name Amount Damaged & Lost Textbooks $ Library Fees & Fines $ We recommend that the principal complete a Remittance Statement and submit the statement and check to the Department of Finance. Fund Transfers Fund transfers are necessary to move money from inactive accounts to the general fund or to eliminate account deficits. However, three of the fund transfers between accounts did not have any support to show that the principal and the activity fund sponsor approved them. We recommend that the principal ensure that transfer vouchers are completed to indicate approval before transferring funds. Also, the forms should be maintained in the files for review. Management s Response Acknowledgements I concur. We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Denise Lewis, Principal and Joyces Barnes, Finance Officer. We would be happy to discuss this report with you at your convenience. 39

40 LUCILLE M. BROWN MIDDLE SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL PERIOD ENDED JUNE 30, 2008 Beginning Ending Disburse- Account Description 7/1/2007 Receipts ments 6/30/2008 Boys Basketball $0.00 $0.00 $0.00 $0.00 Sports 1, , Girls Basketball Gym Locks Gym suits Annual Publication th Grade Class , , Art Department , , Business Department English Department Music-Instrumental , , Science Department Cheerleaders , , FBLA French Club National Jr. Honor Student Government PTA Sponsor Donations/Community 1, , Community Services Donations Book Fair Field Trips , , Fund Raising General 10, , , , Weekly Readers Damaged & Lost Library-Fees & Fines Bookstore Vending Machines 1, , , TOTALS $18, $34, $40, $11,

41 John B. Cary Elementary School Type of Account Fiscal Year 2008 Checking $3, Total $3, Principal: Brenda W. Phillips 41

42 John B. Cary Elementary School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Exit Conference Acknowledgements The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Ms. Brenda Phillips, Principal and Sharon Shelton, Finance Officer. We would be happy to discuss this report with you at your convenience. 42

43 John B. Cary Elementary School Statement of Accountability School Year Ended June 30, 2008 Beginning 7/1/07 Receipts Ending 6/30/08 Disburse Account Description ments Student Senate Community Fund Grant Richmond History Project Faculty Fund Steppe Team Enrichment-Harp Program Principal Discretion (210.20) Pennies For Patient Donor's Account , , Field Trips 1, , , , Fund Raiser General , , th Grade Fundraiser Damaged & Lost Books Prin. Expense Other , , $2, $13, $12, $3,

44 Chimborazo Elementary School Type of Account Fiscal Year 2008 Checking $1, Total $1, Principal: Cheryl L. Burke 44

45 Chimborazo Elementary School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Deposits Management s Response Exit Conference The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. We found 6 instances whereby funds were not deposited on a daily basis. For example, $20.00 was held in the school vault for 5 days before a deposit was made at the bank. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. I concur. The results of audit were discussed with the school principal and finance officer. Acknowledgements We appreciate the excellent assistance and cooperation provided us during the audit by Ms. Cheryl Burke, Principal and Andrea Owens, Finance Officer. We would be happy to discuss this report with you at your convenience. 45

46 CHIMBORAZO ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Account Description Beginning Ending s s 7/1/2007 Receipts Disbursements 6/30/2008 Cap and Gowns Candy gram Cheerleaders SP Recycling Adopt A School Donations 1, , , , School Improve Faculty Fund Partners in the Arts Tutorial Program Chapter I Beacon of Hope Sodas Commission Field Trips , , Fund Raiser General Insurance Movies Theater Weekly Reader Damaged & Lost Textbook Library Fees and Fines Postage (297.93) Other Expenses , (787.38) Void TOTALS $1, $16, $16, $1,

47 Clark Springs Elementary School Type of Account Fiscal Year 2007 Checking $3, Total $3, Principal: Cynthia Tedder 47

48 Clark Springs Elementary School A For School Year Ended June 30, 2007 Audit Findings Good Internal Controls The principal has established and maintains an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Receipts Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $42.00 and the teacher held the monies for 4 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Deposits We found 7 instances whereby funds were not deposited on a daily basis. For example, $44.00 was held in the school vault for 5 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Exit Conference Management s Response Acknowledgements The results of audit were discussed with the school principal and finance officer on July 10, See Appendix B. We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Cynthia Tedder, Principal and Laverne Washington, Finance Officer. We would be happy to discuss this report with you at your convenience. 48

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50 CLARK SPRINGS ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL PERIOD ENDED JUNE 30, 2007 Beginning Ending s s Account Description 7/1/2006 Receipts Disbursements 6/30/2007 School Lunch Fund $50.35 $65.00 $0.00 $ VA Dominion Power Scholastic Standout R.I.F Summit Foundation VA Asian American SCA School-wide Discipline Adopt-A-School Red Cross Mt. Vernon Bapt. Church Target Fundraiser Library Science Fair Boards Field Trips Adopt-An-Animal Interest Workbooks School Board Fines Vending Machines Postage (117.00) Principal's Expense Memory of Javell Leukemia Lymphomia Whittakr, Natasha Sickle Cell TOTALS $3, $6, $7, $3,

51 Continuing Education Type of Account Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $9, $5, $4, Totals $9, $5, $4, Principal: Specialist Clara Scott Estelle Jones 51

52 Continuing Education July 1, 2006 through June 30, 2009 Audit Findings Good Internal Controls Receipts Accounting Records Exit Conference The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Deposits We found 17 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for 13 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Fund Transfers Fund transfers are necessary to move money from inactive accounts to the general fund or to eliminate account deficits. However, the two fund transfers between accounts were not approved by the instructional specialist and the activity fund sponsor. We recommend that the instructional specialist obtain the approval to the activity fund sponsor before transferring funds. The results of audit were discussed with the instructional specialist and finance officer on August 31, Management s Response See Appendix B. Acknowledgements We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Estelle Jones, Instructional Specialist and Gail Martin, Finance Officer. We would be happy to discuss this report with you at your convenience. 52

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54 CONTINUING EDUCATION STATEMENT OF ACCOUNTABILITY SCHOOL YEAR JULY 1, JUNE 30, 2007 Beginning Ending s Disburse- Account Description 7/1/2006 Receipts ments 6/30/2007 DECA District $0.00 $0.00 $0.00 $0.00 Home Economics 1, , Technology Education 3, , , , Hospitality Fund Who Foundation General 6, , , Marketing Education ABE , , GED Testing , , , ESL Registration Bookstore , , TOTALS $11, $63, $65, $9,

55 CONTINUING EDUCATION STATEMENT OF ACCOUNTABILITY SCHOOL YEAR JULY 1, JUNE 30, 2008 Beginning Ending s Disburse- Account Description 7/1/2007 Receipts ments 6/30/2008 DECA District $0.00 $0.00 $0.00 $0.00 Home Economics , , Technology Education 1, , , , Hospitality Fund Who Foundation General , , Marketing Education ABE , , GED Testing 5, , , ESL Registration Bookstore 1, , , TOTALS $9, $71, $75, $5,

56 CONTINUING EDUCATION STATEMENT OF ACCOUNTABILITY SCHOOL YEAR JULY 1, JUNE 30, 2009 Beginning Ending s Disburse- Account Description 7/1/2008 Receipts ments 6/30/2009 DECA District $0.00 $0.00 $0.00 $0.00 Home Economics Education 1, , Technology Education 2, , , Hospitality Fund Who Foundation General , , , Marketing Education ABE , , , GED Testing , , ESL Registration Bookstore , , TOTALS $5, $58, $59, $4,

57 Fairfield Court Elementary School Type of Account Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $9, $7, $8, Totals $9, $7, $8, Principal: Craig Mayo 57

58 Fairfield Court Elementary School A July 1, 2006 through June 30, 2009 Audit Findings Management Administrative Review The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. However, we found instances whereby improvement is needed in the receipts process. We found instances of administrative procedures not being followed (see receipts section of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. Separation of Duties The same individual performs key duties. The finance officer receives funds, write receipts, deposits funds and sign checks on a regular basis. Key duties such as authorizing, approving, recording transactions and making payments should be assigned to different individuals. We recommend that the principal assign a different employee to make the deposit and sign checks. The effectiveness of the internal control system will be maximized and the risk of loss will be minimized. Receipts Exit Conference Management Acknowledgements Collections We found teachers were collecting funds from the students and submitting the collections to the finance officer. However, sometimes the funds would be returned to the teacher to ensure that the collected funds and supporting documents were correct. The teachers may hold the funds for an extended period of time before returning the money to the finance officer. For example, a collection was for $ and the teacher held the returned funds for twenty-eight days. We recommend that all money collected by sponsors/teachers be submitted to the finance officer on a daily basis. We also recommend not delaying the receipting and depositing of funds to reconcile the supporting documents. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. The results of audit were discussed with the former school principal on September 16, See Appendix B We appreciate the excellent assistance and cooperation provided us during the audit by Dr. Irene L. Williams, Former Principal, Craig Mayo, Principal and Natasha Bullock, Finance Officer. We would be happy to discuss this report with you at your convenience. 58

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60 Fairfield Court Elementary School Statement of Accountability School Year Ended June 30, 2007 Beginning Ending s s Account Description 7/1/2006 Receipts Disbursements 6/30/2007 2nd Grade Class $ $0.00 $72.09 $ st Grade Class rd Grade Class th Grade Class th Grade Class (103.94) Kindergarten Class , , Pre-K Class Pk Field Trip k Field Trip , st Grade Field Trip (93.34) 2, , nd Grade Field Trip (262.06) 1, rd Grade Field Trip , , th Grade Field Trip th Grade Field Trip , Language Arts Student Incentives Astoria PALS 1, Faculty Fund Donations 1, , School Improvement Coalition-Black Women Parent Academy Book Fair , , , Vending Commission Fund Raising 6, , , General , , , Weekly Reader Scholastic News School Board-Fees Postage (809.42) (1,049.99) Principal Expense (8,001.64) 17, , (5,841.08) TOTALS $5, $34, $30, $9,

61 Fairfield Court Elementary School Statement of Accountability School Year Ended June 30, 2008 Beginning Ending s s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 2nd Grade Class $27.91 $30.00 $0.00 $ st Grade Class rd Grade Class th Grade Class th Grade Class Kindergarten Class , , Pre-K Class Pk Field Trip k Field Trip , st Grade Field Trip nd Grade Field Trip , rd Grade Field Trip , , th Grade Field Trip th Grade Field Trip 1, , , Language Arts Student Incentives Astoria PALS 1, , Faculty Fund Donations 1, , , , School Improvement Coalition-Black Women Parent Academy (20.00) Book Fair 1, , Vending Commission Fund Raising 4, , , General 1, , Weekly Reader Scholastic News Postage (1,049.99) (1,233.02) Principal Expense (5,951.43) 8, , (4,292.65) TOTALS $9, $25, $27, $7,

62 Fairfield Court Elementary School Statement of Accountability School Year Ended June 30, 2009 Beginning Ending s s Account Description 7/1/2008 Receipts Disbursements 6/30/2009 2nd Grade Class $57.91 $0.00 $0.00 $ st Grade Class rd Grade Class th Grade Class th Grade Class Kindergarten Class , , k Field Trip 1, , st Grade Field Trip nd Grade Field Trip , , rd Grade Field Trip th Grade Field Trip th Grade Field Trip , , Language Arts Student Incentives , Astoria PALS 1, Faculty Fund Donations 2, , , , School Improvement Coalition-Black Women Parent Academy (20.00) Book Fair 1, , Vending Commission Fund Raising 3, , General Weekly Reader Scholastic News Postage (1,233.02) (1,938.62) Principal Expense (4,292.65) 11, , (2,604.66) TOTALS $7, $34, $33, $8,

63 J. B. Fisher Elementary School Type of Account Fiscal Year 2008 Checking $7, Total $7, Principal: Charlene S. Brooks 63

64 J. B. Fisher Elementary School A For School Year Ended June 30, 2008 Audit Findings Management Receipts Administrative Review The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. However, we found instances whereby improvement is needed in the receipt process. We found instances of administrative procedures not being followed (see receipts section of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. We recommend that the principal review the student activity fund records on an unscheduled basis. Deposits We found 10% of the sampled receipts were not deposited on a daily basis, during the school year. For example, $56.00 was held in the school for four days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Collections We found that some teachers were collecting funds from students but were not submitting the collections to the finance officer on a daily basis. For example, a collection was for $69.79 and the teacher held some of the money for four days, before submitting the money to the finance officer for receipting. We recommend that all money collected by sponsors/teachers be submitted to the finance officer on a daily basis. Exit Conference Management Response Acknowledgements The results of audit were discussed with the school principal and finance officer. I concur with the audit findings and we will continue to improve. We appreciate the excellent assistance and cooperation provided us during the audit by Charlene Brooks, Principal and Patricia Martin, Finance Officer. We would be happy to discuss this report with you at your convenience. 64

65 Fisher Elementary School Statement of Accountability School Year Ended June 30, 2008 Beginning Ending s s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 Homeroom 004 $16.75 $0.00 $0.00 $16.75 Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Homeroom Hearing Impaired SCA VA TSA Adopt A School Donations/Dr. Olanrewaju PTA Red Cross Special Donations Recycling Fund Field Trips , , , General Library Fees & Fines Vending Machine , TOTALS $4, $13, $10, $7,

66 Ginter Park Elementary School Type of Account Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $4, $5, $4, Totals $4, $5, $4, Principal: Cathy Randolph 66

67 Ginter Park Elementary School A July 1, 2006 through June 30, 2009 Audit Findings Good Internal Controls The principal has established and maintains an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Receipts Deposits We found 16 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for 2 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I concur. Disbursements Non-Student Activity Fund Disbursements Several disbursements such as postage, staff development, equipment, teacher luncheons, and travel were made from student activity funds. During the school year, a deficit may exist in an account, but should be cleared by the reimbursement of funds. The following accounts had deficit account balances at June 30, 2009: Account Name Amount Principal s Expense ($3,357.86) Postage ($820.93) The fund was charged a total of $4, for such disbursements. The student activity fund can be used as a working fund to pay for items that are the responsibility of the School Board. However, the principal must request reimbursement for these disbursements. These disbursements are not student related and should not be charged to the fund unless a reimbursement from the School Board will be received. We recommend that the principal submit a Request for Reimbursement Form with supporting documentation to Department of Finance in the amount of $4,

68 Ginter Park Elementary School A July 1, 2006 through June 30, 2009 Management s Response: I do not concur. The Request for Reimbursement Form was submitted and held in Finance. This form was submitted before June 30. When the finance officer called to see why the check had not come, she was informed that the request was sitting on someone s desk. Purchase Orders A review of purchases in excess of $ disclosed that the school purchased $ of items. This amount represents 1 transaction. The principal purchased t-shirts for the staff. We found that the purchase was an allowable student activity fund purchase and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases $ or over be entered on a purchase order and submitted to the Division of Purchasing. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. Management s Response: I concur. Accounting Records School Board Fees and Fines All school board fees and fines for damaged property and textbooks are collected at the school and submitted to the Department of Finance in the month of June. The balances for school board collections are as follows: Account Name Amount Library Fees & Fines $ We recommend that the principal complete a Remittance Statement and submit the statement and check to the Department of Finance. Management s Response: I concur. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer on August 6, We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Cathy Randolph, Principal and Shelby Goode, Finance Officer. We would be happy to discuss this report with you at your convenience. 68

69 GINTER PARK ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2007 Beginning Ending 7/1/2006 Receipts Disbursements 6/30/2007 Ginter Park Lit $0.00 $9.00 $0.00 $9.00 Musical Instrument Saturday Math Academy SCA PTA Sponsored Activity 1, , , , D.A.R.E Girl's Scout Beacon of Hope School Supplies Positive Behavior , , , Book Fair , , Field Trips 1, , , , Funding Raising General , , Concert & Theatre Weekly Reader School Board Fines Library Fee & Fines , , Ginter Park Book Store Curiosity Shop Principal's Expense (1,946.53) 5, , (1,263.20) Postage (799.66) 1, , (492.00) TOTALS $1, $33, $30, $4,

70 GINTER PARK ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Beginning Ending 7/1/2007 Receipts Disbursements 6/30/2008 Ginter Park Lit $9.00 $0.00 $0.00 $9.00 Musical Instrument Saturday Math Academy SCA , , PTA Sponsored Activity 1, , , , D.A.R.E Girl's Scout Beacon of Hope School Supplies Positive Behavior 1, , , , Book Fair , , , Field Trips 1, , , , Funding Raising General Concert & Theatre Weekly Reader School Board Fines Library Fee & Fines Ginter Park Book Store Curiosity Shop Principal's Expense (1,263.20) 4, , (1,435.81) Postage (492.00) 1, , (879.93) TOTALS $4, $38, $37, $5,

71 GINTER PARK ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2009 Beginning Ending 7/1/2008 Receipts Disbursements 6/30/2009 Ginter Park Lit $9.00 $35.00 $44.00 $0.00 Musical Instrument Saturday Math Academy SCA , PTA Sponsored Activity 1, , , , D.A.R.E Girl's Scout Beacon of Hope School Supplies Positive Behavior 1, , , , Book Fair 1, , , , Field Trips 1, , , , Funding Raising General Concert & Theatre Weekly Reader School Board Fines Library Fee & Fines Ginter Park Book Store Curiosity Shop Principal's Expense (1,435.81) 7, , (3,357.86) Postage (879.93) 1, , (820.93) TOTALS $5, $38, $39, $4,

72 Greene Elementary School Type of Account Fiscal Year 2008 Checking $ Total $ Principal: Linda L. Sims 72

73 Greene Elementary School A For School Year Ended June 30, 2008 Audit Findings Receipts Accounting Records Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Deficit Account s Some sponsors were allowed to disburse funds in excess of their account balance. During the school year, a deficit may exist in an account, but should be cleared by the reimbursement of funds. The following account had a deficit account balance at year-end: June 30, 2008 Account Name Amount Principal Expense ($4,250.51) Deficit balances are not allowed in student activity funds. Deficits result in account holders with positive balances not having full access to their funds. We recommend that the principal eliminate all deficit account balances. An analysis of each deficit account must be performed and a plan of action developed to eliminate the deficit. The principal may consider all inactive accounts. However, the sponsor for the inactive account must be consulted before transfers are made. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Linda Simms, Principal and Ashley Pride, Finance Officer. We would be happy to discuss this report with you at your convenience. 73

74 E.S.H. Greene Elementary School Statement of Accountability For Year Ended June 30, 2008 Beginning 7/1/07 Receipts Ending 6/30/08 Disburseme Account Description nts Cheerleading , Math Club , Red Cross Club School Improvement Faculty Fund , , Donations Donations from 1st , , Book Fair SCA-Pupil Incentive , , Field Trips 2, , , , Library Improvement General Theater Weekly Reader Damaged Property Lost Books Postage (997.55) 1, Principal Expense Other (708.48) 3, , (4,250.51) $1, $17, $18, $

75 Linwood Holton Elementary School Type of Account Fiscal Year 2008 Checking $7, Cash on Hand Savings 6.54 Total $7, Principal: David Hudson 75

76 Linwood Holton Elementary School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Receipts The principal has established and maintains an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Deposits We found 5 instances whereby funds were not deposited on a daily basis. For example, $75.00 was held in the school vault for 6 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I concur. Disbursements Supporting Documentation Our review of cash disbursements disclosed 13% (3 of 23) of the cash disbursements sampled lacked supporting documentation. Receipts were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Management s Response: I concur. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Mr. David Hudson, Principal and Jodi Granger, Finance Officer. We would be happy to discuss this report with you at your convenience. 76

77 LINWOOD HOLTON ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL PERIOD ENDED JUNE 30, 2008 Beginning Ending s Disburse- s Account Description 7/1/2007 Receipts ments 6/30/2008 Extended Day Program $8.17 $0.00 $0.00 $8.17 Coca Cola Commission , , Pridewear-Sweatshirts th grade VPI Class Principal , , Teacher Incentive Reading Program Music-Vocal Department School Cafeteria Music-Band Mathematics Reading Buddy Program Student Council Faculty Fund McCandlish Law Firm Faculty Fund PTA the wiz 4, , , Field Trip 2, , , , Fundraiser General Bank Service Charges Interest Weekly Reader Workbooks-agendas Textbook Fines Library Fines Candy & Snack Vending Gold Slip Pencils Postage TOTALS $9, $20, $22, $7,

78 Huguenot High School Type of Account Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $55, $53, , Savings 27, , , CD 2, , Totals $85, $83, $91, Principals: Natasha Thompson, Cynthia Gentry and Kelvin M. Edwards 78

79 Huguenot High School A July 1, 2006 through June 30, 2008 Audit Findings Receipts Collections In FY 2007, we found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis in 37% of the receipts tested. For example, $ was collected over several days from 2/23/07 to 3/5/07 and turned in to the finance officer on 3/8/07. In FY 2008, we found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis in 40% of the receipts tested. For example, $1,628 was collected on 10/9/07 and turned in to the finance officer on 10/16/07. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. (Repeat Finding) Management s Response Disbursements I concur. Staff development will be conducted on the financial responsibilities and the proper procedures for collecting and submitting funds to the finance officer. Faculty sponsors will be monitored in collecting and submitting funds. Periodically interviews with sponsors will be conducted to ensure that all monies collected are submitted daily for deposit. Cash Payments We found one instance of cash payment to a vendor. The sponsor paid the vendor with cash and submitted the balance of the funds to the finance officer for deposit. We recommend that all collected funds be submitted intact to the finance officer and a check written for all disbursements. (Repeat Finding) Management s Response I concur. 79

80 Huguenot High School A July 1, 2006 through June 30, 2008 Purchase Orders A review of $ and over transactions disclosed that the school purchased $138, of items during FY We found that most of the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, several items purchased did not follow the school district s purchasing policy. The school purchase a PA system and computers for the library. These items should be procured through the Purchasing Department to ensure that they are included in RPS inventory and properly tagged. We recommend that all purchases $ or over be entered on a purchase order and submitted to the Division of Purchasing. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. Management s Response Accounting Records I do not concur with this finding. The proper procurement procedures were used to purchase the computers and PA system for the media center at Huguenot High School. **Note: The computers and PA system were purchased by the media services department through the procurement officer for Richmond Public Schools. The funds used to purchase the equipment were sent to the RPS purchasing department and the purchasing department authorized the purchase order number and the disbursement on July 27, Fundraising Activities We found several instances whereby fund-raising activities were not approved in writing by the principal. All fund-raisers require the written approval of the principal. School Board Policy 4.06 states that each principal shall develop and maintain a list of all fund-raising activities. No fund-raising shall be approved for any school activity until the activity has been approved. We recommend that the principal require the completion of the Fundraising Activity Permission Request and the Fund-raising Operating Report. These forms must be maintained for review by Internal Audit. Management s Response I concur. A review of the procedures for all fund raising activities will be done. 80

81 Huguenot High School A July 1, 2006 through June 30, 2008 Acknowledgements We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Natasha Thompson, Principal, Ms. Cynthia Gentry, Principal and Marianne Benton, Finance Officer. We would be happy to discuss this report with you at your convenience. 81

82 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2007 Beginning Ending Account 07/01/06 Receipts Disbursements 06/30/07 Baseball $0.00 $2, $2, $0.00 Boys Basketball , , Football , , Soccer , , Cheering Squad Boys Tennis Boys Track , , Wrestling Softball , , Girls Basketball , , Volleyball , , Girls Volleyball Girls Tennis Girls Track , , Administration (0.10) 49, , , Athletic Booster Gym Locks Gym Suits 6, , Coca Cola , , , Annual Publication 7, , JROTC Huguenot , , , Class of Class of , Class of , , , Class of , , , Class of , , , Art Department 1, , Business Department English Department Foreign Language Dept Guidance Department History Department March of Dimes Music Instrument Dept Music Vocal Department Math Department Science Department , , Challenge Boys Basketball Club Computer Info Systems 2, , Cheerleaders , , ESL Field Trips , , COE

83 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2007 Beginning Ending Account 07/01/06 Receipts Disbursements 06/30/07 DECA District I Jazz Band DECA Locks 4, , Drama Club ID Badges Donations 1, , Ecology Club Forensics Club French Club FBLA , , FHA (FCCLA) , , Fashion COE Hobbs Chemistry German National Honor Soc Track Club Volleyball Club Girls , Health/School Nurse Fund Tennis Club N.H.S French Honor Society Spanish Honor Society Math Club High Steppers Dance Pennies for Patients PSAT BETA Club Science Club Soccer Club Spanish Club 2, , Costa Rica Trip S.C.A. 1, , , , Student Parking 5, , , Band Instrument Fund , , Testing AP Vocational Education Voc Comm of Scholars VA TSA Vandalism Retribution Wrestling Club , , , First Robotics 6, , , Weight Room All City Band Year End Activities , ,

84 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2007 Beginning Ending Account 07/01/06 Receipts Disbursements 06/30/07 Band Donations Faculty Scholarship Faculty Fund , , National Science Honor Library Copier Fees 2, , Huguenot Remembrance Fu General 1, , , , Interest 11, , Lost Textbooks 2, , Evening Graduation Postage Prin. Expense Other , , $75, $247, $238, $85,

85 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2008 Beginning Ending Account 07/01/07 Receipts Disbursements 06/30/08 Baseball $0.00 $ $ $0.00 Boys Basketball , , Football , , Soccer Cheering Squad Boys Track Wrestling , , Softball , , Girls Basketball , , Volleyball , , Girls Volleyball Girls Track Administration 9, , , , Athletic Booster Gym Locks Gym Suits 6, , Coca Cola 4, , , Adapts Annual Publication JROTC Huguenot 3, , , , Class of , , Class of Class of Class of Class of , , Class of , , , , Class of , , , , Art Department 1, , Business Department English Department Foreign Language Dept Guidance Department History Department March of Dimes Music Instrument Dept Music Vocal Department Math Department Science Department , ,

86 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2008 Beginning Ending Account 07/01/07 Receipts Disbursements 06/30/08 Physical Ed Department Challenge Boys Basketball Club Computer Info Systems 2, , Cheerleaders , , ESL Field Trips , , COE , , DECA District I Jazz Band DECA Locks 4, , Drama Club ID Badges Donations 1, , Ecology Club Forensics Club French Club FBLA , , FHA (FCCLA) , , Fashion COE Hobbs Chemistry , , , German National Honor Soc Track Club Volleyball Club Girls Health/School Nurse Fund Tennis Club N.H.S French Honor Society Spanish Honor Society Math Club High Steppers Dance PSAT BETA Club Science Club Soccer Club Spanish Club 2, , Costa Rica Trip S.C.A. 1, , Student Parking 5, , , Band Instrument Fund 1, , , Testing AP Vocational Education

87 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2008 Beginning Ending Account 07/01/07 Receipts Disbursements 06/30/08 Voc Comm of Scholars VA TSA Vandalism Retribution Wrestling Club 1, First Robotics , , , Weight Room All City Band Year End Activities Band Donations Faculty Scholarship Faculty Fund 2, , National Science Honor Library Copier Fees Huguenot Remembrance Fu General 1, , , , Interest 11, , Lost Textbooks Evening Graduation Postage Prin. Expense Other , , $85, $210, $212, $83,

88 Huguenot High School A For School Year Ended June 30, 2009 Audit Findings Management Administrative Review Our review of transactions disclosed that the prior principal and current principal did not routinely monitor and review the finance officer s or teachers records. We found many instances of administrative procedures not being followed (see receipts, disbursements, and accounting records sections of this report). The principal has the overall responsibility for the management of the student activity funds. The prior principal delegated daily duties to the Assistant Principals which remained the same once the current principal was hired. Due to the current principal s limited knowledge of the student activity fund procedures, the staff requested and handled funds in ways that were not in accordance with the guidelines. The principal must provide continuous supervision to ensure that established and approved procedures are being followed. We recommend that the principal review the student activity fund records on an unscheduled basis. For example, the principal should verify receipts to deposits, review the contents of the safe or vault, and determine whether teachers are holding monies. Management s Response: I did not receive a small training session on December 10, I reviewed the student activity funds with Mrs. Tennessee in July Auditor s Comment: A meeting was held with the principal on November 16, 2009 to remind him of the meeting that was held with all principals on December 10 th. Also, numerous meetings and training were provided to the principal beginning on April 16, 2009 until May 19, 2009 to help the principal gain a better understanding of SAF guidelines. After the meeting on November 16 th, the principal acknowledged all of the above and was in agreement with the finding and recommendation. Condition of Financial Records A cursory review of the financial records before we began the audit disclosed that the financial records were not maintained in a logical manner. The deposits were not made at the time the receipts were written. Therefore, it was difficult to determine which receipts totaled to a deposit. We recommend that the principal ensure that records are filed and maintained in accordance with established administrative guidelines. For example, invoices should be attached to expenditure vouchers and the receipt number range should be written on deposit tickets. 88

89 Huguenot High School A For School Year Ended June 30, 2009 Management s Response: The finance officer conducted the business of Huguenot High School to the best of her ability. The finance officer served on a part time basis collecting money, receipting money and making deposits and did so as no one else would. Retention of Cancelled Checks Our review of the cancelled checks disclosed that 347 of the cancelled checks were not retained by the principal and finance officer. We were unable to verify the payee s name or whether 2 signatures were present on the checks. We recommend that the principal and finance officer follow the record retention schedule established by the State Department of Education. The Richmond Public Schools Records Manager can provide a copy of the retention schedule. Management s Response: I concur. Receipts Supporting Documentation Our review of cash receipts disclosed 14% (50 of 349) of the cash receipts sampled lacked supporting documentation. Twenty nine of the 50 transactions occurred under the prior principal. The teachers did not always turn in the student receipts or settlement sheets to the finance officer. Therefore, we could not verify recorded receipts to source documents. We recommend that the teachers receipts and settlement sheets along with the collections are submitted to the finance officer on a daily basis. The finance officer must maintain these records for audit. Management s Response: I concur. Measures have been taken and proper procedures presented to the faculty on operating procedures for finance. Presentations were presented in faculty meetings. Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $2, and the teacher held the money for 25 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Management s Response: I concur. 89

90 Huguenot High School A For School Year Ended June 30, 2009 Deposits We found 12 instances whereby funds were not deposited on a daily basis. Eleven of the untimely deposits were made under the supervision of the prior principal. For example, $ was held in the school vault for 2 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I concur. Disbursements Supporting Documentation Our review of cash disbursements disclosed 13% (81 of 604) of the cash disbursements sampled lacked supporting documentation. Invoices and expenditure vouchers were not available for review. The missing documentation for 36 of the 81 cash disbursements noted above occurred under the previous school administration. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Auditor s Comment: No response was provided by principal. The draft report was provided to the principal on October 30, A meeting was held with the principal on November 16, 2009 to discuss the finding and recommendation. Non-Student Activity Fund Disbursements Several disbursements such as custodial supplies, parking signs, paint to remove graffiti, and office paper were made from student activity funds. The fund was charged $1, for such disbursements. The student activity fund can be used as a working fund to pay for items that are the responsibility of the School Board. However, the principal must request reimbursement for these disbursements. We found no evidence that a reimbursement request was submitted to the Department of Finance. These disbursements are not student related and should not be charged to the fund unless a reimbursement from the School Board will be received. We recommend that the principal submit a Request for Reimbursement Form with supporting documentation to Department of Finance in the amount of $1, Auditor s Comment: No response was provided by principal. The draft report was provided to the principal on October 30, A meeting was held with the principal on November 16, 2009 to discuss the finding and recommendation. 90

91 Huguenot High School A For School Year Ended June 30, 2009 Purchase Orders A review of purchases in excess of $ disclosed that the school purchased $22, of items. This amount represents 11 transactions. Six of the 11 transactions occurred under the prior school administration which totaled $12, For example, the Athletic Director purchased athletic supplies for the various sports. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the school did not follow the school district s purchasing policy. We recommend that all purchases over $ be entered on a purchase order and submitted to the Department of Logistics. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. Auditor s Comment: No response was provided by principal. The draft report was provided to the principal on October 30, A meeting was held with the principal on November 16, 2009 to discuss the finding and recommendation. Outstanding Debt During the school year, the Athletic Director purchased athletic supplies and equipment on credit without the approval of the principal. The vendor hosts an open house to showcase all new supplies and equipment. The vendor allows the Athletic Directors to select and carry items with them and then bill them later. As of June 30, 2009, the debt associated with these purchases was $20, and the balance in the athletic account was $ There is an additional $11, that was due as of September 30, Therefore, there is $31, in outstanding debt. The debt far exceeds the available balance in the athletic accounts. We recommend that the principal develop a plan of action to eliminate the debt. The principal needs to explain to the staff that making these kind of purchases are in violation of the Richmond Public Schools administrative regulations and procedures. Any person or persons making unauthorized purchases for a school system could be held personally and severally liable to the Richmond Public Schools for payment of such purchase, and such action may reflect upon one s management proficiency. The principal should also take the necessary disciplinary action to ensure this does not occur again. Management s Response: I concur. A plan of action has been reviewed and submitted to Dixie Sporting Goods for repayment. 91

92 Huguenot High School A For School Year Ended June 30, 2009 Cash Payments There were 3 instances whereby money was paid to a student or vendor in cash. For example, on October 6, 2008, $ was paid to a vendor in cash. The sponsor paid the vendor with cash and submitted the balance of the funds to the finance officer for deposit. The remaining two cash payments occurred under the supervision of the current principal. We recommend that all collected funds be submitted intact to the finance officer and a check written for all disbursements. Management s Response: I concur. Cash Advances Cash advances were issued to the Athletic Director for petty cash and meals for the athletic games. There were 10 cash advances identified that were not properly settled in a timely manner. Six of the cash advances were issued under the prior principal and the remaining four were issued by current administration. A $300 cash advance for petty cash was issued to the Athletic Director on January 6, As of September 1, 2009, the Athletic Director had not settled the advance and supporting documentation was not submitted for the expenses. During the audit, a meeting was held with the Athletic Director to discuss the cash advance and to ask that the money be returned to the school. The Athletic Director submitted the funds in a lock box to the principal on September 2, We recommend that all cash advances are handled in accordance with School Board Policy 3.06B. Management s Response: I concur. Taxable Wages Several Richmond Public Schools employees were paid for wages or services performed. The school district must comply with the Internal Revenue Services' (IRS) laws and regulations regarding taxation of earnings. All Richmond Public Schools employees paid for wages or services must be paid through regular payroll. Police officers are considered employees and must be paid through regular payroll. All non-employees paid $ or more in a calendar year must be reported to IRS on a Form The information on non-employees must be submitted to the Department of Finance so that a Form 1099 can be issued. Management s Response: I concur. 92

93 Accounting Records Huguenot High School A For School Year Ended June 30, 2009 Deficit Account s Some sponsors were allowed to disburse funds in excess of their account balance. During the school year, a deficit may exist in an account, but should be cleared by the reimbursement of funds. The following accounts had deficit account balances at year-end: Account Name Amount Prin. Expense Other ($4,442.90) However, the principal must request reimbursement for these disbursements. We found no evidence that a reimbursement request was submitted to the Department of Finance. We recommend that the principal eliminate all deficit account balances. Reimbursement requests for items that are the responsibility of the School Board must be submitted as soon as possible or on a monthly basis. The principal needs to submit a Request for Reimbursement Form with supporting documentation to Department of Finance to eliminate the above deficit. Management s Response: I concur. School Board Fees and Fines All school board fees and fines for damaged property and textbooks are collected at the school and submitted to the Department of Finance in the month of June. The balances for school board collections are as follows: Account Name Amount Lost Textbooks $1, We recommend that the principal complete a Remittance Statement and submit the statement and check to the Department of Finance. Management s Response: I concur. Game Ticket Reports The Athletic Director did not provide evidence that the ticket reports were prepared for athletic events. Whenever tickets are sold for school functions, a ticket report should be prepared in duplicate for each ticket seller by the box office manager. A consolidated ticket report should be submitted to the school finance officer with the money and the supporting Report of Ticket Sales attached. 93

94 Huguenot High School A For School Year Ended June 30, 2009 Auditor s Comment: No response was provided by principal. The draft report was provided to the principal on October 30, A meeting was held with the principal on November 16, 2009 to discuss the finding and recommendation. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer on September 2, We appreciate the excellent assistance and cooperation provided us during the audit by Mr. Kelvin Edwards, Principal and Marianne Benton, Finance Officer. We would be happy to discuss this report with you at your convenience. 94

95 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2009 Beginning Ending Account 07/01/08 Receipts Disbursements 06/30/09 Baseball $0.00 $ $ $0.00 Boys Basketball , , Football , , Golf Soccer Cheering Squad Boys Track Wrestling , , Softball Girls Basketball , , Girls Volleyball Girls Track Administration 2, , , Athletic Booster Gym Locks Gym Suits 6, , Coca Cola 1, , , Annual Publication JROTC Huguenot 2, , , , Class of , , , , Class of , , Class of Class of Class of Class of , , Class of , , , , Art Department 1, , Business Department English Department Foreign Language Dept Guidance Department History Department March of Dimes Music Instrument Dept Music Vocal Department Math Department Science Department Physical Ed Department Challenge

96 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2009 Beginning Ending Account 07/01/08 Receipts Disbursements 06/30/09 Boys Basketball Club , , Computer Info Systems 2, , Cheerleaders , , ESL Field Trips Deaf and Hard of Hearing COE , , DECA District I Jazz Band DECA Locks 4, , Drama Club ID Badges Donations Ecology Club Football Club , , Forensics Club French Club FBLA , , FHA (FCCLA) , , Fashion COE Hobbs Chemistry 1, , German National Honor Soc Girls Basketball Club , , Track Club Volleyball Club Girls Health/School Nurse Fund Tennis Club N.H.S French Honor Society Spanish Honor Society Math Club High Steppers Dance PSAT BETA Club Science Club Soccer Club Spanish Club 2, , , Costa Rica Trip , , S.C.A. 1, , Student Parking 4, , ,

97 HUGUENOT HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2009 Beginning Ending Account 07/01/08 Receipts Disbursements 06/30/09 Band Instrument Fund Testing AP Vocational Education Voc Comm of Scholars VA TSA Wrestling Club First Robotics 4, , , Weight Room All City Band Year End Activities Band Donations Bonaparte Mem , , Faculty Scholarship Faculty Fund , , National Science Honor Library Copier Fees , Huguenot Remembrance Fu , Fund Raising General 1, , , , Interest 12, , , Lost Textbooks , , , Evening Graduation Postage Prin. Expense Other , , (4,442.90) $83, $241, $232, $91,

98 George Mason Elementary School Type of Account Fiscal Year 2008 Checking $2, Total $2, Principal: Sandra Bynum 98

99 George Mason Elementary School A For School Year Ended June 30, 2008 Audit Findings Management Receipt Management Response Administrative Review The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. However, we found instances whereby improvement is needed in the receipt and disbursement process. We found a few instances of administrative procedures not being followed (see receipts and disbursements sections of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. Collections We found that some teachers were collecting funds from students, during the school years, but was not submitting the collections to the finance officer on a daily basis. We found 2 of the 12 sampled receipted were held by teachers. This represents 16% of the sampled receipts. For example, a collection was for $ and the teacher held some of the money for fifteen days before submitting the money to the finance officer for receipting. In addition, during the , and school years 33%, 6% and 31% respectively, of the sampled receipts were held by the teachers prior to submitting the funds to the finance officer. We recommend that all money collected by sponsor/teachers be submitted to the finance officer on a daily basis. I concur. Teachers will be reminded, verbally and in writing of the importance of the receipts being turned in immediately after the collection of money 99

100 George Mason Elementary School A For School Year Ended June 30, 2008 Deposits We found 16% (2 of 12) of the sampled receipts were not deposited on a daily basis, during the school year. For example, $ was held in the school s safe for six days before a deposit was made at the bank. In addition, during the , and school years 11%, 20% and 31% respectively, of the sampled receipts were not deposited promptly. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management Response Disbursements Management Response I concur. After a discussion with the finance officer we have decided on an alternate person for the bank deposits when one is not available. Purchase Orders A review of $ and over transactions disclosed that the school purchased $1, of items during the school year. This amount represents three transactions. For example, the principal purchased supplies for the mini store. In addition, during the school year two purchases totaling $1, were also made for the mini store. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases $ or over be entered on a purchase order and submitted to the Division of Purchasing. I concur. The purchases were made by a prior administration. Exit Conference Acknowledgements The results of the audit were discussed with the school principal and finance officer on August 5, We appreciate the excellent assistance and cooperation provided us during the audit by Sandra Bynum, Principal and Toni Williams, Finance Officer. We would be happy to discuss this report with you at your convenience. 100

101 George Mason Elementary School Statement of Accountability School Year Ended June 30, 2008 Beginning Ending s s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 Science Fair $ $0.00 $0.00 $ Hospitality Fund 1, , Principal PTA Expense Acct. 1, , Head Start Donations 3, (744.04) 3, CFB Tutorial Program Rockefeller Book Fair Field Trips 1, , , General , , Weekly Readers Damaged-Lost Textbooks Vending Machine Postage (647.39) TOTALS $10, $18, $25, $2,

102 Mary Munford Elementary School Type of Account Fiscal Year 2008 Fiscal Year 2009 Checking $50, ($2,876.70) Savings 203, , Totals $253, $114, Principal: Gregory P. Muzik 102

103 Mary Munford Elementary School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Receipts The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $83.00 and the teacher held the monies for 8 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Management s Response: I concur. Teachers are reminded to turn in all funds when they are collected. We even have a collections day each week so they don t have to deal with money every day. Sometimes, they just get too busy to process the funds and hold it until they have time to do this. Deposits We found 2 instances whereby funds were not deposited on a daily basis. For example, $36.00 was held in the school vault for 2 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I concur. I just do not always have time to leave the school and get to the bank and with one office staff person often the collections are processed well after banks have closed. While I understand the concern about losses, all funds are kept in a drop safe that is bolted to the floor of an office closet which is kept locked. After hours, the office is locked and alarm activated. It is highly unlikely that keeping money in the safe will result in any losses. 90% of the funds collected are in the form of checks, not cash. 103

104 Mary Munford Elementary School A For School Year Ended June 30, 2008 Disbursements Supporting Documentation Our review of cash disbursements disclosed 7% (3 of 45) of the cash disbursements sampled lacked supporting documentation. The receipts were not available for these checks. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Management s Response: I concur. Exit Conference Acknowledgements The results of audit were discussed with the school principal. We appreciate the excellent assistance and cooperation provided us during the audit by Mr. Gregory Muzik, Principal. We would be happy to discuss this report with you at your convenience. 104

105 MARY MUNFORD ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY FOR SCHOOL YEAR JUNE 30, 2008 Beginning Ending 7/1/2007 Receipts Disbursements 6/30/2008 Band/Music Dept. $2, $ $ $2, Student Council 14, $8, $7, , Compass Club , , Minds in Motion 4, , , , Hospitality Fund , , School Improvement Fund 2, , Friends of Library Before and After Care 118, , , , Cafeteria Fund 2, , , Recycle Yearbook 10, , , , Field Trips 5, , , , General Interest 5, , , Student Planning Week Bank Fees & Charges Class Activity Fee 3, , , , Special Grade Level Damaged School Property Lost and Damaged Lost or Damaged Principal Expense Acct. 7, , , , TOTALS $179, $272, $199, $253,

106 Mary Munford Elementary School A For School Year Ended June 30, 2009 Audit Findings Good Internal Controls Receipts The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Deposits We found 7 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school safe for 14 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Disbursements Management Response Exit Conference Acknowledgements Supporting Documentation Our review of cash disbursements disclosed 9% of the cash disbursements sampled lacked supporting documentation. Receipts were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and receipts. See Appendix B The results of audit were discussed with Gregory Muzik, Principal on August 24, We appreciate the excellent assistance and cooperation provided us during the audit by Mr. Gregory Muzik, Principal. We would be happy to discuss this report with you at your convenience. 106

107 MARY MUNFORD ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2009 Beginning Ending s Disburse- Account Description 7/1/2008 Receipts ments 6/30/2009 Bank and Music $ $94.22 Student Council 17, , Compass Club 1, , Minds in Motion 1, , Hospitality Fund School Improvement 2, , Friends of Library Before and After Care 108, , , Cafeteria Fund Recycle Yearbook 10, , Field Trips 12, , , , General 9, , Interest Student Planning Week Bank Fees & Charges Class Activity Inc. 8, , , Special Grade Level Lost or Damaged Principal Expense Account 8, , $183, $7, $76, $114,

108 108 Appendix B

109 Oak Grove Elementary School Type of Account Fiscal Year 2008 Checking $9, Total $9, Principal: Jannie Laursen 109

110 Oak Grove Elementary School A For School Year Ended June 30, 2008 Audit Findings Good Internal Controls Receipts The principal has established and maintains an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $66.00 and the teacher held the monies for 5 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Management s Response: I concur. Deposits We found 3 instances whereby funds were not deposited on a daily basis. For example, $26.00 was held in the school vault for 5 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I concur. Disbursements Supporting Documentation Our review of cash disbursements disclosed 11% (2 of 19) of the cash disbursements sampled lacked supporting documentation. Receipts were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Management s Response: I concur. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Jannie Laursen, Principal and Paulette Stewart, Finance Officer. We would be happy to discuss this report with you at your convenience. 110

111 Oak Grove Elementary School A For School Year Ended June 30, 2008 Beginning 7/1/07 Receipts Disbursements Ending 6/30/08 Account Description Head Start Fr th Grade-Interim Partn Afro-Jazz Dance Club Red Cross Walmart/Sam's Club Sun FD (Faculty) (0.00) Virginia Power Comm in Sch. Of Rich Partners in the Arts Special Counselor Emer Donations Library Book Project th Gr. Historical Oak Grove Retirement Dupont-Donation Tumc Principal 2, , Corp Exp Sch Supp First Grad Account , , Weyerhouser 2, , Book Fair , , SP Recycling Class Field Trips 1, , , , Fund Raiser General Theatre Weekly Reader Damaged & Lost School Book Store Vending (Oak Grove) 1, , Vending (Belle) Principal Account Postage Principal Expense Other (866.37) 2, , (25.25) Principal's $9, $14, $14, $9,228.28

112 Open High School Type of Account Fiscal Year 2008 Checking $7, Total $7, Principal: Candace Veney-Chaplin 112

113 Open High School A For School Year Ended June 30, 2008 Audit Findings Receipts Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $45.26 and the teacher held the monies for 30 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Student Receipts and Settlement Sheets The sponsor or teacher is responsible for issuing individual receipts to the students or using a settlement sheet to record the student s name and amount received. In many instances, we found that settlement sheets were used, however, the settlement sheets did not contain all the necessary information to verify the name of the student(s) and the date the money was collected from the students. We recommend that teachers use student receipts and/or settlement sheets to document the receipt of money. When using the settlement sheets the teachers should ensure that the sheets are complete with all pertinent information. Teachers receipts should be submitted to the finance officer at the end of the school year. The finance officer must maintain these records for audit. Deposits We found 6 instances whereby funds were not deposited on a daily basis. For example, $209 was held in the school for 4 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. 113

114 Open High School A For School Year Ended June 30, 2008 Disbursements Supporting Documentation Our review of cash disbursements disclosed 18% of the cash disbursements sampled lacked supporting documentation. Invoices and expenditure vouchers were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Sales Tax We found instances whereby sales tax was paid on tangible personal property and services purchased by the school. Elementary and secondary schools are exempt from paying sales tax on tangible personal property and services. We recommend that the finance officer review all invoices before payment and determine whether sales tax should be paid. Accounting Records Fund Transfers Fund transfers are necessary to move money from inactive accounts to the general fund or to eliminate account deficits. However, the majority of fund transfers between accounts were not approved by the principal. The finance officer and the activity fund sponsor signed the transfer vouchers. We recommend that the principal s approval be obtained before transferring funds between activity accounts. Fundraising Activities We found several instances whereby fund-raising activities were not approved in writing by the principal. All fund-raisers require the written approval of the principal. School Board Policy 4.06 states that each principal shall develop and maintain a list of all fund-raising activities. No fund-raising shall be approved for any school activity until the activity has been approved. We recommend that the principal require the completion of the Fund-raising Activity Permission Request and the Fundraising Operating Report. These forms must be maintained for review by Internal Audit. School Safe The school does not have a vault. A lightweight safe is used to store money. The safe may be easily removed from the school premises. We recommend that the principal investigate getting a heavy duty safe to increase protection. Acknowledgements We appreciate the excellent assistance and cooperation provided us during the audit by Brigette Newberry, Finance Officer. We would be happy to discuss this report with you at your convenience. 114

115 OPEN HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Beginning Ending s s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 Principal VENDING $1, $2, $2, $ Student REPS TESTING Digital yearbook YADAPPP OHS YEARBOOK , , Lucian/Eliz family Emily's family Chad Ingold Family Yamila Minga Irina Alekseeva's Lorah Allen's Family Candice Berkley Family Bnewberry's Family Ram Bhaget's Family C. Carleton's Family Class of Class of Class , , Class Drums no Guns Class of , , , Partners in the Arts PG Scholarship Fund Cooking class Yoga African American Lit Social Studies Department Science Department , , Art Club 1, , , , YMCA , ,

116 OPEN HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Beginning Ending s s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 French Club Spanish Club Parent - Fund for Field Trips , , Fund Raising Literary Magazine Sunshine Club Special Projects Lost Textbooks Media Copier Postage (1,019.40) (952.80) Principal Expense (80.05) (166.29) TOTALS $9, $22, $24, $7,

117 Redd Elementary School Type of Account Fiscal Year Fiscal Year 2008 Fiscal Year Checking $5, $1, $5, Cash on Hand Totals $5, $1, $5, Principal: Regina Farr 117

118 Redd Elementary School A July 1, 2006 through June 30, 2009 Audit Findings Management Administrative Review Our review of transactions disclosed that the principal does not routinely monitor and review the finance officer or teachers records. We found many instances of administrative procedures not being followed (see receipts, disbursements, and accounting records sections of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. We recommend that the principal review the student activity fund records on an unscheduled basis. For example, the principal should verify receipts to deposits, review the contents of the safe or vault, and determine whether teachers are holding monies. Management s Response: The principal will review student activity fund on an unscheduled basis and maintain documentation of this having been done and findings. Condition of Financial Records A cursory review of the financial records before we began the audit disclosed that the financial records were not maintained in a logical manner. The invoices were not attached to the expenditure voucher and the check number was not written on the invoices. The deposits were not made at the time the receipts were written. We recommend that the principal ensure that records are filed and maintained in accordance with established administrative guidelines. For example, invoices should be attached to expenditure vouchers and the receipt number range should be written on deposit tickets. Management s Response: All files now are organized and labeled to ensure proper maintenance. Blank Checks A review of the checkbook disclosed that there were 9 blank checks that had the signature of the previous Assistant Principal on them although there is an Assistant Principal currently on staff. We recommend that the principal ensure that no blank checks are signed in advance. A check should not be written unless it has been approved as evidence of a completed expenditure voucher which is to be signed by the Principal. All checks should have at least two signatures of the current administrators of the school. Management s Response: I concur. The signature was that of the 3 rd person authorized to sign checks not the previous assistant principal. Blank checks will not be signed in advance. 118

119 Redd Elementary School A July 1, 2006 through June 30, 2009 Signature Authority Four of the sampled checks reviewed only contained one signature on them. We recommend that all checks include the signature of at least two individuals. The principal should assign another individual to sign checks and acquire new signature cards from the bank. The Clerk of the School Board must approve the new signature card. Management s Response: The principal will ensure that two signatures are present on all checks. Receipts Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $42.00 and the teacher held the monies for 3 days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Management s Response: This has been corrected and will be carefully monitored by principal and finance officer for complete adherence Any non compliant staff member will be reported to principal and she will write a written letter to staff member. Student Receipts and Settlement Sheets The sponsor or teacher is responsible for issuing individual receipts to the students or using a settlement sheet to record the student s name and amount received. In many instances, we found that receipts or settlement sheets were not used. Therefore, we could not verify recorded receipts to source documents. We recommend that teachers use student receipts and/or settlement sheets to document the receipt of money. The teachers receipts and settlement sheets should be submitted to the finance officer at the end of the school year. The finance officer must maintain these records for audit. Management s Response: A mini-staff [meeting] was held with teachers reviewing guidelines and procedures for handling student activity funds. A written reminder sheet was given to teachers as well. Principal will monitor carefully. 119

120 Redd Elementary School A July 1, 2006 through June 30, 2009 Altering Receipts Our review of the student receipts issued by the teachers disclosed that some of the receipts are being altered in order to match the information on the finance officer s receipt. Also, it was noted that when there is an error on the student receipts or finance officer s receipts, the receipts are altered to correct the error. We recommend that receipts are not altered to ensure that all documentation is the same. Receipts should be written at the time that money is received and the money along with the receipts should be immediately turned in to the finance officer. In the event there is an error, the receipt should be marked void and another receipt should be written and issued. The void receipt should be kept for audit purposes. Management s Response: The above recommendation has been discussed with the finance officer and staff (classroom teachers). The practice of using void for errors will be implemented. Missing Funds In May 2009, funds were collected and receipted, but were not recorded in sequential order. The finance officer issued receipts totaling $213.11, but no money was deposited in the bank for these receipts. According to the documentation submitted by the teachers, funds were submitted for these receipts that should have been deposited. The school is carrying this money on the books as cash on hand. Some of the receipts were written on May 29, 2009 and the remainder was written in June 2009 by the finance officer. Based on the support documentation it was determined that the school has missing funds and the receipts for these funds were altered by the finance officer. We recommend that the principal ensure that all funds collected are deposited on a daily basis in accordance with the policies and procedures. The principal should discuss the matter with the finance officer to determine whether undeposited funds exist. If so, the funds should be deposited immediately. If not, the necessary disciplinary action should be taken, including the repayment of the $ Management s Response: The principal has discussed the above recommendation with the finance officer. All funds have/will be deposited on a daily basis. Also, repayment has been made by finance officer and teacher for $ Deposits We found 16 instances whereby funds were not deposited on a daily basis. For example, $50.00 was held in the school vault for 10 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. 120

121 Redd Elementary School A July 1, 2006 through June 30, 2009 Management s Response: Principal will ensure that all deposits are made daily. Supporting Documentation Our review of cash disbursements disclosed 23% (16 of 70) of the cash disbursements sampled lacked supporting documentation. Invoices and expenditure vouchers were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Management s Response: Both finance officers were asked many times to produce necessary documentation during their respectful tenure. The previous finance officer did not produce any and the current finance officer produced what she had which still left the above status. Principal will review and ensure the above recommendation is adhered to. Accounting Records Deficit Account s Some sponsor(s) were allowed to disburse funds in excess of their account balance. During the school year, a deficit may exist in an account, but should be cleared by the reimbursement of funds. The following accounts had deficit account balances at year-end: Account Name Amount Donations ($56.07) Deficit balances are not allowed in student activity funds. Deficits result in account holders with positive balances not having full access to their funds. We recommend that the principal eliminate all deficit account balances. An analysis of each deficit account must be performed and a plan of action developed to eliminate the deficit. The principal may consider all inactive accounts. However, the sponsor for the inactive account must be consulted before transfers are made. Management s Response: As of August 2009, all deficit account balances were eliminated. This will be monitored by the principal. Exit Conference Disbursements Acknowledements The results of audit were discussed with the school principal and finance officer on August 25, We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Regina Farr, Principal and Mrs. Rayzelle Watson, Finance Officer. We would be happy to discuss this report with you at your convenience. 121

122 ELIZABETH D. REDD ELEMENTARY SCHOOL STATEMEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2007 Beginning Ending 7/1/2006 Receipts Disbursements 6/30/2007 Kindergarten Fifth Grade Safety Patrol Student Council Book Fair , , Commission 1, , , Field Trips , , Fund Raising (4.85) General Insurance Theatre Weekly Reader (7.87) Damaged & Lost Library Fines Principal Expense- Postage (475.39) Principal Expense-Other (2,030.18) 6, , Field Day Donations , , Scholastic Reader Extended Day (118.95) TOTALS $ $23, $18, $5,

123 ELIZABETH D. REDD ELEMENTARY SCHOOL STATEMEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Beginning Ending 7/1/2007 Receipts Disbursements 6/30/2008 Kindergarten Fifth Grade Safety Patrol Student Council Book Fair , , , Box Tops for Education Commission 2, , (457.06) Field Trips , , , Fund Raising General , , (1,137.46) Insurance Theatre Weekly Reader Damaged & Lost Library Fines Principal Expense- Postage (432.93) Principal Expense-Other , (1,933.59) Field Day Donations 1, , , (1,032.68) Scholastic Reader Extended Day TOTALS $5, $22, $26, $1,

124 ELIZABETH D. REDD ELEMENTARY SCHOOL STATEMEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2009 Beginning Ending 7/1/2008 Receipts Disbursements 6/30/2009 Kindergarten Fifth Grade Safety Patrol Student Council Book Fair 2, , , , Box Tops for Education Commission (457.06) 1, Field Trips 2, , , Fund Raising , , General (1,137.46) 3, , Insurance Theatre Weekly Reader Damaged & Lost Library Fines Principal Expense-Postage (432.93) (6.53) Principal Expense-Other (1,933.59) 3, , Field Day , , Donations (1,032.68) (56.07) Scholastic Reader Extended Day TOTALS $1, $22, $18, $5,

125 Richmond Community High School Type of Account Fiscal Year 2006 Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $27, $22, $34, $38, Totals $27, $22, $34, $38, Principal: Thomas Beatty 125

126 Richmond Community High School A July 1, 2005 through June 30, 2009 Audit Findings Receipts Management Response Disbursements Management Response Management Response Accounting Records Management Response Deposits We found one instance whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for 3 days before a deposit was made at the bank Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. I concur. Supporting Documentation Our review of cash disbursements disclosed 10% of the cash disbursements sampled lacked supporting documentation. Receipts and expenditure vouchers were not available for review. The finance officer stated that principal does not complete expenditure vouchers. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. All expenditure voucher and receipts must be approved by the principal. I concur. Purchase Orders A review of $ and over transactions disclosed that the school purchased $17,744 of items. This amount represents 10 transactions. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases $ or over be entered on a purchase order and submitted to the Division of Purchasing. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. I concur. Fund Transfers Fund transfers are necessary to move money from inactive accounts to the general fund or to eliminate account deficits. However, the majority of fund transfers between accounts were not approved by the principal and the activity fund sponsor. We recommend that the finance officer obtain the signatures of the principal and activity fund sponsor on all transfer vouchers prior to transferring funds. I concur. 126

127 Richmond Community High School A July 1, 2005 through June 30, 2009 Exit Conference The results of audit were discussed with the school principal and finance officer on September 29, Acknowledgements We appreciate the excellent assistance and cooperation provided us during the audit by Thomas Beatty, Principal and Carolyn Walker-Tyler, Finance Officer. We would be happy to discuss this report with you at your convenience. 127

128 Richmond Community High School A July 1, 2006 through June 30, 2006 Beginning 7/1/05 Receipts Disbursements 128 Ending 6/30/06 Account Description Gym Locks $0.00 $ Parking Permit Lost ID Badges Lost Calculators Riches Newspaper Literary Magazine Class of Class of Class of , , Class of , , , Class of Art Department Foreign Language AP Lab Manuels Music MU Alpha Theta Physical Education Costa Rica/Spanish , , Spaghetti Dinner Fund , Community Council Contingency Fund Spanish Magzine Peer Facilitators/Prom Model Un , , , AP Exams 5, , , , PSAT Exams Field Exper. Minimester , , , Freshman Minimester 3, , Sophomore Minimester Junior Minimester 4, , , , Senior Minimester , French SOP. Minimester SOP Minimester , , Robotics 7, , , Summer School Orientation , ,

129 Richmond Community High School A July 1, 2006 through June 30, 2006 Chess Team The Community , , FBLA , , Honor Society National Art Honor Society Japanese Exchange 1, , Spanish , , Key Club Guitar Guitar Grant , Student Council Faculty Fund Library Reserves Phonics Harp Rwanda Movie Trip End of Year Gospel Choir General , , Interest Tsunami Donations-NHS Contributions Lost & Damaged Books Lab Fees Science , , Library Fees & Fines Vending Machine Principal-Postage Principal Expense Other , , $ 34, $198, $ 205, $ 27,

130 Richmond Community High School A July 1, 2006 through June 30, 2007 Beginning 7/1/06 Receipts Disbursements Ending 6/30/07 Account Description Gym Locks $0.00 $ Parking Permit Lost ID Badges Lost Calculators Yearbook , , Riches Newspaper Literary Magazine Class of Class of Class of Class of Class of , , Class of , , Class of Class of Art Department (6.39) Jackson Foundation , , , Foreign Language AP Lab Manuels Music MU Alpha Theta Physical Education Costa Rica/Spanish Spaghetti Dinner Fund , , Community Council Contingency Fund Spanish Magzine Peer Facilitators/Prom Model Un 1, , , , AP Exams 5, , PSAT Exams Field Exper. Minimester 3, , Freshman Minimester , , , Sophomore Minimester Junior Minimester 1, , , Senior Minimester , ,

131 Richmond Community High School A July 1, 2006 through June 30, 2007 Account Description Beginning 7/1/06 Receipts Disbursements Ending 6/30/07 French SOP Minimester , , Robotics , , , Summer School Orientation , , Chess Team Environmental Fund The Community , , FBLA , , , Honor Society National Art Japanese Exchange 1, , Spanish Key Club Guitar Guitar Grant Student Council Faculty Fund Library Reserves Phonics Harp Rwanda Movie Trip End of Year Gospel Choir General , , , Interest Tsunami Donations-NHS Contributions Lost & Damaged Books Lab Fees Science 1, , , Library Fees & Fines Vending Machine Principal-Postage Principal Expense Other $ 27, $154, $ 159, $ 22,

132 Richmond Community High School A July 1, 2006 through June 30, 2008 Beginning 7/1/07 Receipts Disbursements 132 Ending 6/30/08 Account Description Gym Locks $0.00 $ Parking Permit Lost ID Badges Lost Calculators Yearbook , , , Riches , , Newspaper Literary Magazine Class of Class of Class of Class of Class of Class of , , Class of Class of Art Department (6.39) Art Grant , , Jackson Foundation 2, , Foreign Language AP Lab Manuels Music MU Alpha Theta Physical Education Driver's Education Costa Rica/Spanish Spaghetti Dinner Fund 1, , , Community Council Contingency Fund Spanish Magzine Peer Facilitators/Prom Model Un 2, , , AP Exams PSAT Exams Food Bank Donations Field Exper. Minimester Freshman Minimester 1, , , , Sophomore Minimester , , ,570.84

133 Account Description Richmond Community High School A July 1, 2006 through June 30, 2008 Beginning 7/1/07 Receipts Disbursement s Ending 6/30/08 Junior Minimester , , , Senior Minimester 1, , , (0.07) French SOP Minimester Robotics 1, , , , Summer School Orientation Chess Team Enviromental Fund , , The Community , , FBLA , , Honor Society National Art Honor Society Japanese Exchange 1, , Spanish Key Club Guitar Guitar Grant Student Council Faculty Fund Phonics Harp Rwanda Movie Trip Gospel Choir General 1, , Interest Tsunami Donations- NHS Contributions , , Lost & Damaged Books Lab Fees Science , , Library Fees & Fines Vending Machine Principal-Postage Principal Expense $22, $141,545.4 $129, $34,

134 Richmond Community High School A July 1, 2006 through June 30, 2008 Beginning 7/1/08 Receipts Disbursements 134 Ending 6/30/08 Account Description Gym Locks $0.00 $ Parking Permit Lost ID Badges Lost Calculators Riches Newspaper Literary Magazine Prom Only Donations Class of Class of Class of Class of , , , Class of , Class of Art Grant 2, , Foreign Language AP Lab Manuels MU Alpha Theta NTHS Physical Education Spaghetti Dinner Fund Community Council Contingency Fund Spanish Magzine Peer Facilitators/Prom Model Un , , Food Bank Donations Coupon Book , , Freshman Minimester 6, , , , Sophomore Minimester 1, , Junior Minimester 3, , , Senior Minimester (0.07) French Class of 09 Jackets Sop. Minimester , , Robotics 8, , , , Summer School Orientation , ,

135 Richmond Community High School A July 1, 2006 through June 30, 2008 Account Description Beginning 7/1/08 Receipts Disbursements Ending 6/30/09 Chess Team Environmental Fund 2, , The Community , , , FBLA , , Honor Society National Art Honor Society Japanese Exchange 1, , Spanish Key Club Amnesty International Guitar Guitar Grant Student Council Faculty Fund Library Reserves Phonics Harp Rwanda Movie Trip End of Year Gospel Choir General , , Interest Tsunami Donations Contributions , , Lost & Damaged Books Lab Fees Science Library Fees & Fines Vending Machine , , Principal-Postage Principal Expense Other $34, $165, $161, $38,

136 Richmond Community High School Statement of Accountability School Year Ended June 30, 2009 Beginning 7/1/08 Receipts Disbursements 136 Ending 6/30/09 Account Description Gym Locks $0.00 $ Parking Permit Lost ID Badges Lost Calculators Yearbook Riches Newspaper Literary Magazine Class of Class of Class of Prom Only Donations Class of Class of Class of Class of , , , Class of , Class of Class of Art Grant 2, , Jackson Foundation Foreign Language/Spanish AP Lab Manuals Music MU Alpha Theta NTHS Physical Education Driver's Education Spaghetti Dinner Fund Community Council Contingency Fund Spanish Magazine Peer Facilitators/Prom Model Un , , Food Bank Donations

137 Account Description Richmond Community High School Statement of Accountability School Year Ended June 30, 2009 Beginning 7/1/08 Receipts Disbursements 137 Ending 6/30/09 Coupon Book , , Freshman Minimester 6, , , , Sophomore Minimester 1, , Junior Minimester 3, , , Senior Minimester (0.07) French Class of 09 Jackets Sop. Minimester , , Robotics 8, , , , Summer School Orientation , , Chess Team Environmental Fund 2, , The Community , , , FBLA , , Honor Society National Art Honor Society Japanese Exchange 1, , Spanish Key Club Amnesty International Guitar Guitar Grant Student Council Faculty Fund Phonics Harp Rwanda Movie Trip Gospel Choir General , , Interest Tsunami Donations-NHS Contributions , , Lost & Damaged Books Lab Fees Science Vending Machine , , Principal-Postage $34, $165, $161, $38,462.03

138 Richmond Technical Center-North Type of Account Fiscal Year 2008 Checking $19, Total $19, Principal: N. Mauricee Holmes 138

139 Richmond Technical Center-North A For School Ended June 30, 2008 Audit Findings Good Internal Controls Management s Response Acknowledgements The principal has established and maintains an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. We wish to commend the principal and finance officer for the manner in which the funds were managed and maintained. The principal concurs with the results of the audit. We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. N. Mauricee Holmes, Principal and Tracy Brown, Finance Officer. We would be happy to discuss this report with you at your convenience. 139

140 Richmond Technical Center-North Statement of Accountability For School Ended June 30, 2008 Beginning 7/1/07 Receipts Disbursements Ending 6/30/08 Account Description V.I.C.A. 1, , Staff Development Faculty & Staff General Interest Other-Accommodations , , Carpentry Food Service II Auto Body Repair 4, , , , Small Engine Repair Health Occupation I Intensified Enrich Office Services Personal Services Vending Machine 9, , , , Horticulture 1, , , , horticulture II/Floral Postage Principal Expense Other (88.70) 4, , (319.73) EMT , , $18, $16, $16, $19,

141 Richmond Technical Center-South Type of Account Fiscal Year 2006 Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Checking $40, $44, $46, $38, Investments 56, , , , Scholarship , , Savings , Totals $96, $106, $112, $110, Principal: N. Mauricee Holmes 141

142 RTC-South A July 1, 2005 through June 30, 2009 Audit Findings Management Management Response Receipts Management Response Separation of Duties The same individual performs key duties. The finance officer receives funds, write receipts, and deposits funds. Key duties such as authorizing, approving, recording transactions and making payments should be assigned to different individuals. We recommend that the principal assign a different employee to make the deposit. The effectiveness of the internal control system will be maximized and the risk of loss will be minimized. Concur. A letter will be written to specify each person s duties. Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Concur. This has been addressed in my opening meeting August 31, 2009 and will be recorded on school announcements the first week of school. Deposits We found one instance whereby funds were not deposited on a daily basis. For example, $ was held in the school safe for 3 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management Response Accounting Records Concur. This has been addressed in my opening meeting August 31, 2009 and will be recorded on school announcements the first week of school. Fundraising Activities We found two instances whereby fund-raising activities were not approved in writing by the principal. All fund-raisers require the written approval of the principal. School Board Policy 4.06 states that each principal shall develop and maintain a list of all fund-raising activities. No fund-raising shall be approved for any school activity until the activity has been approved. We recommend that the principal require the completion of the 142

143 RTC-South A July 1, 2005 through June 30, 2009 Fund-raising Activity Permission Request and the Fund-raising Operating Report. These forms must be maintained for review by Internal Audit Services. Management Response Concur. In addition, I have discussed this matter with the staff. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer on September 2, We appreciate the excellent assistance and cooperation provided us during the audit by N. Mauricee Holmes, Principal and Glenda Allen, Finance Officer. We would be happy to discuss this report with you at your convenience. 143

144 Richmond Technical Center-South A For School Year Ended June 30, 2006 Beginning 7/1/05 Receipts Disbursements 144 Ending 6/30/06 Account Description Personal Services $ $ HOSA Nurse Aide Automotive Shop Cosmetology Archer , , Cosmetology Nichols , , Class Fund Yadacus Cosmetology Shop Drafting Class Fund Electric Car Project NATEF AYES 2, , Cosmetology Advisory Auto Servicing RTC Cafeteria Job Fair Building Management Machine Shop AC Refrigeration Auto Paint Rinaldi 2, , , Computer System Tech Electrical Trades Electronics II Carpentry 1, , , , Welding Hall 2, , , Commercial Foods Automotive M Edwards Auto Mechanics Print Shop 1, , , Technical Student Printing Class Fund Masonry 2, , , Hospitality/Culinary , , York Scholarship Fund Evening School 2, , Colortree Scholarship Cabinetmaking 1, , Intergrated Man. Tech

145 Richmond Technical Center-South A For School Year Ended June 30, 2006 Beginning 7/1/05 Receipts Disbursements Ending 6/30/06 Account Description Dental Aide Prin of Technology RTC Robotics , , Apprenticeship Fund Technology Foundations Carpentry House Found 3, , FBLA , , State SkillsUSA , (2,856.56) Hosa Adult J Sargeant Reynolds CSOF R Bennett VICA , , , RTC Combined Org , District II Vica 1, , HOSA Secondary Slbems scholarship Fund 1, , Staff Development Wella Scholarship Fund 1, , HO Scholarship Fund Coke Scholarship Fund 3, , , Faculty Fund Faculty/Staff , Administrative Pell Open House Admin Veterans Affairs Interest CD 6, , , General Interest CD 50, , Accomadation Account (677.83) 23, , Accommadation Holding Account , , Bookstore Sales , , Bookstore Evening , , Ho Lab Fee 8, , , , Shop Charges Transcripts Tuition Apprentice , , Tuition T & I Evening , ,

146 Richmond Technical Center-South A For School Year Ended June 30, 2006 Beginning 7/1/05 Receipts Disbursements Ending 6/30/06 Account Description RPS Accommadation , , Candy & Vending 9, , , , Infirmary Principal Postage (281.94) 2, , (60.72) Principal Instruction (2,364.25) 35, , (1,568.15) 113, $400, $417, ,

147 Richmond Technical Center-South A For School Year Ended June 30, 2007 Account Description Beginning 7/1/06 Receipts Disbursements Ending 6/30/07 Career Links 0.00 $ $ Personal Services , , HOSA Nurse Aide Automotive Shop Cosmetology Archer , , Cosmetology Nichols , , Class Fund Yadacus , , Cosmetology Shop Drafting Class Fund Pharmacy Tech Electric Car Project NATEF AYES 2, , Cosmetology Advisory Auto Servicing , , RTC Cafeteria Job Fair Building Management , , Machine Shop AC Refrigeration Auto Paint Rinaldi , , Computer System Tech Electrical Trades Electronics II Carpentry 3, , , , Welding Hall 1, , Commercial Foods , , Automotive M Edwards , Telelevision Production Auto Mechanics Print Shop 1, , , , Technical Student Printing Class Fund Masonry 1, , Hospitality/Culinary , , York Scholarship Fund

148 Richmond Technical Center-South A For School Year Ended June 30, 2007 Account Description Beginning 7/1/06 Receipts Disbursements Ending 6/30/07 Colortree Scholarship Cabinetmaking 1, , Intergrated Man. Tech Dental Aide Prin of Technology RTC Robotics 1, Techology Foundations Carpentry House Found 3, , , Student Services FBLA , State SkillsUSA (2,856.56) 2, Hosa Adult J Sargeant Reynolds CSOF R Bennett VICA 2, , , RTC Combined Org District II Vica (290.95) HOSA Secondary Manufacturing Slbems scholarship Fund Staff Development Wella Scholarship Fund 1, , HO Scholarship Fund Coke Scholarship Fund , , , Faculty Fund Faculty/Staff , , Administrative Pell Open House Admin Veterans Affairs Interest CD 1, , General Interest CD 49, , Accomadation Account , , Damaged & Lost Books Accommadation Ho Lab Fee 4, , Shop Charges

149 Richmond Technical Center-South A For School Year Ended June 30, 2007 Account Description Beginning 7/1/06 Receipts Disbursements Ending 6/30/07 Candy & Vending 10, , , , Infirmary Principal Postage (60.72) 2, , (129.00) Principal Instruction (1,568.15) 27, , (5,111.55) 96, $157, $147, ,

150 Richmond Technical Center-South A For School Year Ended June 30, 2008 Beginning 7/1/07 Receipts Disbursements 150 Ending 6/30/08 Account Description Career Links 0.00 $ $ Personal Services , , HOSA Nurse Aide Automotive Shop Cosmetology Archer , , Cosmetology Nichols Class Fund Yadacus , , , Cosmetology Shop Drafting Class Fund Pharmacy Tech Electric Car Project NATEF Legal/Entrepreneurship AYES 2, , Cosmetology Advisory Auto Servicing , , RTC Cafeteria Job Fair Building Management , , Machine Shop AC Refrigeration Auto Paint Rinaldi , , Computer System Tech Electrical Trades Electronics II Carpentry 4, , , , Welding Hall 1, , Commercial Foods 1, , , Automotive M Edwards Telelevision Production Auto Mechanics Print Shop 5, , , , Technical Student Printing Class Fund Masonry 1, Hospitality/Culinary , , York Scholarship Fund

151 Richmond Technical Center-South A For School Year Ended June 30, 2008 Beginning 7/1/07 Receipts Disbursements 151 Ending 6/30/08 Account Description Colortree Scholarship Cabinetmaking 1, , Intergrated Man. Tech Dental Aide Prin of Technology RTC Robotics Techology Foundations , , Carpentry House Found 11, , Student Services FBLA 1, , Hosa Adult J Sargeant Reynolds CSOF R Bennett VICA , , RTC Combined Org District II Vica (290.95) HOSA Secondary Manufacturing Slbems scholarship Fund Staff Development Wella Scholarship Fund 1, HO Scholarship Fund Coke Scholarship Fund 3, , , , Faculty/Staff , , (259.92) Administrative Pell Open House Student Testing , , Interest CD 1, , , General Interest CD 49, , Accomadation Account , , Damaged & Lost Books Accommadation Ho Lab Fee Candy & Vending 9, , , , Infirmary Principal Postage (129.00) 1, , (5.76) Principal Instruction (5,111.55) 33, , (1,348.55) 106, $119, $113, ,146.03

152 RTC-South Statement of Accountability For Fiscal Year Ended June 30, 2009 Beginning 7/1/08 Receipts Disbursements 152 Ending 6/30/09 Account Description Nurse Aide II $0.00 $ $44.00 $ Career Links Personal Services HOSA Nurse Aide I Automotive Shop Cosmetology Archer , , Cosmetology Nichols , , Class Fund Yadacus 1, , , , Cosmetology Shop Drafting Class Fund Pharmacy Tech Electric Car Project NATEF Legal/Entrepreneurship AYES 2, , , Cosmetology Advisory Auto Servicing , , RTC Cafeteria , , Job Fair Building Management , , Machine Shop AC Refrigeration Auto Paint Rinaldi , Computer System Tech Electrical Trades Electronics II Carpentry 1, , , Welding Hall 1, , Commercial Foods , , Automotive M Edwards Television Production Auto Mechanics Print Shop 4, , , , Technical Student Printing Class Fund , , Masonry Hospitality/Culinary , ,

153 RTC-South Statement of Accountability For Fiscal Year Ended June 30, 2009 Beginning 7/1/08 Receipts Disbursements 153 Ending 6/30/09 Account Description York Scholarship Fund Colortree Scholarship Cabinetmaking 1, , Intergrated Man. Tech Dental Aide Principal of Technology RTC Robotics Technology Foundations , , Carpentry House Found 11, , Student Services FBLA 1, , Hosa Adult J Sargeant Reynolds CSOF R Bennett National Tech Honor , , VICA RTC Combined Org District II Vica , , HOSA Secondary Manufacturing Staff Development Wella Scholarship Fund HO Scholarship Fund Coke Scholarship Fund 2, , , , Faculty/Staff (259.92) W. J. Quash Scholarship RTC Scholarship , , Tonda Scholarship fund Administrative Pell Open House Student Testing 5, , , Interest CD 6, , , General Interest CD 49, , , Accommodation Account , , Damaged & Lost Books HO Dept. Accommodation Ho Lab Fee

154 RTC-South Statement of Accountability For Fiscal Year Ended June 30, 2009 Beginning 7/1/08 Receipts Disbursements Ending 6/30/09 Account Description Candy & Vending 6, , , , Infirmary Principal Postage (5.76) 4, , Principal Instruction (1,348.55) 8, , (564.96) Totals 112, $159, $160, ,

155 Stuart Elementary School Type of Account Fiscal Year 2008 Checking $4, Total $4, Principal: Jennifer Moore 155

156 Stuart Elementary School A For School Year Ended June 30, 2008 Audit Findings Management Management s Response Condition of Financial Records A cursory review of the financial records before we began the audit disclosed that the financial records were not maintained in a logical manner. The invoices were not attached to the expenditure voucher and the check number was not written on the invoices. The deposits were not made at the time the receipts were written. Therefore, it was difficult to determine which receipts totaled to a deposit. We recommend that the principal ensure that records are filed and maintained in accordance with established administrative guidelines. For example, invoices should be attached to expenditure vouchers and the receipt number range should be written on deposit tickets. Concur. As a result of the audit, new filing of documentation has been developed. Signature Authority Two of the checks reviewed only contained the signature of the principal. We recommend that all checks include the signature of at least two individuals. The principal should assign another individual to sign checks and acquire new signature cards from the bank. The Clerk of the School Board must approve the new signature card. Management s Response Receipts Management s Response Concur. As a result of the audit, there will be closer verification of two signatures for each check. Supporting Documentation Our review of cash receipts disclosed 20% (5 of 25) of the cash receipts sampled lacked supporting documentation. The finance officer did not issue receipts to the teachers. We recommend that a pre-numbered receipt be issued at the time money is received from any source. It is important to write receipts when money is received so its arrival is established for insurance purposes. Concur. As a result of the audit and explanations from auditor, proper documentation is maintained for each transaction. Deposits We found 5 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for14 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. 156

157 Stuart Elementary School A For School Year Ended June 30, 2008 Management s Response Disbursements Management s Response Concur. As a result of the audit, deposits are made in a timely manner. Supporting Documentation Our review of cash disbursements disclosed 81% (22 of 27) of the cash disbursements sampled lacked supporting documentation. Invoices and expenditure vouchers were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Concur. As a result of the audit and explanation by the auditor, procedures have been developed to provide proper documentation. Purchase Orders A review of $ and over transactions disclosed that 12 of the 25 purchases over $500 did not have a receipt and/or invoice attached to the expenditure voucher to support the transactions. The Superintendent issues at the beginning of each school year administrative guidelines for purchases made from student activity funds. Invoices and expenditure vouchers were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. Management s Response Exit Conference Acknowledgements Do Not Concur. Receipts are always maintained for all purchases. As a result of the audit, a better filing system has been developed to maintain documentation. The results of audit were discussed with the school principal and finance officer on January 5, We appreciate the excellent assistance and cooperation provided us during the audit by Ms. Jennifer Moore, Principal and Charmaygne Simmons, Finance Officer. We would be happy to discuss this report with you at your convenience. 157

158 STUART ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Beginning Ending s Account Description 7/1/2007 Receipts Disbursements 6/30/2008 VPI Graduation $39.81 $ $ $88.53 Student Council Faculty Account Sunshine Fund Book Fair Field Trips 2, , , , General , , , Theatre Weekly Readers , , , Damaged Books School Store Coca Cola Postage (1,570.73) (662.28) Principal (1,498.09) 2, , (859.79) TOTALS $1, $22, $19, $4,

159 Summer Hill Elementary School Type of Account Fiscal Year 2008 Checking $12, Total $12, Principal: Indira Williams 159

160 Summer Hill Elementary School A For School Year Ended June 30, 2008 Audit Findings Management Administrative Review Our review of transactions disclosed that the previous principal did not routinely monitor and review the finance officer or teachers records. We found many instances of administrative procedures not being followed (see receipts, disbursements, and accounting records sections of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. We recommend that the principal review the student activity fund records on an unscheduled basis. For example, the principal should verify receipts to deposits, review the contents of the safe or vault, and determine whether teachers are holding monies. Management s Response: I concur. Condition of Financial Records A cursory review of the financial records before we began the audit disclosed that the financial records were not maintained in a logical manner. The invoices were not attached to the expenditure voucher and the check number was not written on the invoices. The deposits were not made at the time the receipts were written. Therefore, it was difficult to determine which receipts totaled to a deposit. We recommend that the principal ensure that records are filed and maintained in accordance with established administrative guidelines. For example, invoices should be attached to expenditure vouchers and the receipt number range should be written on deposit tickets. Management s Response: I concur. 160

161 Summer Hill Elementary School A For School Year Ended June 30, 2008 Receipts Deposits We found 15 instances whereby funds were not deposited on a daily basis. For example, $ was held in the school vault for 3 days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. Management s Response: I do concur, however, it should be noted that the bank used is over 4 miles away from the site. It is suggested that the bank be changed. Grant Funds The school received a grant in the amount of $6,300 and the previous principal deposited the funds into the student activity fund. All grants, regardless of the dollar amount, must be processed through the Office of Grants. The grant must be received, receipted, expended, administered and accounted for by the Finance Department through a special revenue fund. We recommend that the principal contact the Grants Manager to obtain guidance on having the grant funds taken out of the student activity fund and submitted to Department of Finance to be properly accounted for and monitored. Auditor s Comment: The previous principal was responsible for placing the grant in the student activity fund. The Grants Manager was contacted and went over to the school to provide guidance to the current principal on removing the funds from the student activity fund. Disbursements Supporting Documentation Our review of cash disbursements disclosed 22% (5 of 23) of the cash disbursements sampled lacked supporting documentation. Receipts and/or expenditure vouchers were not available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Management s Response: I concur. Exit Conference Acknowledgements The results of audit were discussed with the school principal and finance officer. We appreciate the excellent assistance and cooperation provided us during the audit by Mrs. Sandra Clark, Principal and Derita Malcom, Finance Officer. We would be happy to discuss this report with you at your convenience. 161

162 Summer Hill Elementary School Statement of Accountability For the Year Ended June 30, 2008 Beginning 7/1/07 Receipts Disbursements Ending 6/30/08 Account Description 5th Grade Music, Vocal Cheerleading Chapter 1 Math Club , , Modern Dance (1.23) Student Council Assoc , , Homemade Crafts Adopt School Hospitality Fund , , PTA Activities Bankers Bank Heart Fund Early Childhood Classroom Supplies Rockefeller Foundation Communities in Schools 4, , , , Book Fair Field Trips , , Fund Raiser Doughnuts , , General Theater Weekly Readers Damaged Textbooks Library Fees & Fines Postage (0.01) Principal Expense Other (4,071.32) 10, , $1, $38, $26, $12,

163 Swansboro Elementary School Type of Account Fiscal Year 2008 Checking $14, Total $14, Principal: Mary Pierce 163

164 Swansboro Elementary School A For School Year Ended June 30, 2008 Audit Findings Management Management Response Receipts Management Response Disbursements Management Response Administrative Review The principal has established and maintained an adequate system of internal accounting control to provide reasonable assurance that funds are accounted for properly. However, we found instances whereby improvement is needed in the receipt process and disbursement process. We found instances of administrative procedures not being followed (see receipts, disbursements and accounting records sections of this report). The principal has the overall responsibility for the management of the student activity funds. The daily duties may be delegated to staff. However, the principal must provide continuous supervision to ensure that established and approved procedures are being followed. The current principal s administration began July 23, 2007 and the current finance officer took responsibility for student funds on July 1, Collections During the school year we found that 42% of the sampled receipts were held by teachers prior to being submitted to the finance officer for receipting. The teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. For example, a collection was for $ and the teacher held the monies for eight days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. The prior administration was responsible for this finding. After July 1, 2007, teachers submit funds to finance officer by 10:30 a.m. each day. The funds are deposited daily. Cash Advances Cash advances were issued during the audit period for various school purchases. During the school year, we found that $1, was issued to a teacher for uniforms and supplies. However, the settlement of the advance was not handled properly. There was no evidence that the sponsor/teacher settled the advance. We recommend that all cash advances are handled in accordance with School Board Policy 3.06B. The prior administration was responsible for this finding. No cash advances have been given since July 1, Mrs. Johnson, Communities in School Coordinator, was able to locate the receipt for the advance of $1,500 mentioned in the report. 164

165 Swansboro Elementary School A For School Year Ended June 30, 2008 Accounting Records Management Response Exit Conference Management Response Acknowledgements Safe The school does not have a vault. A locked file cabinet is used to store money. We recommend that the principal obtain a safe to secure and protect all cash, cash items and all other items susceptible to personal use or sale. We have purchased a safe and will have it bolted by Plant Services. The results of audit were discussed with the school principal and finance officer. Checks that were written from July 1, 2007 to August 15, 2007 were from the former administration. My signature began August 23, 2007 as documented in the BB&T attachment. We appreciate the excellent assistance and cooperation provided us during the audit by Mary Pierce, Principal and Anna Hyman, Finance Officer. We would be happy to discuss this report with you at your convenience. 165

166 SWANSBORO ELEMENTARY SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDED JUNE 30, 2008 Beginning Ending s Disburse- Account Description 7/1/2007 Receipts ments 6/30/2008 School Store 2000 $ $ Pencils Vending Moving On 5th Graders Student Council Guidance Department Aquarium Club School Agendas Men of Swansboro , , Donations CIS PTA Principal SOL-Student-Celebration Caps & Grown Children, Inc. CIS 5, , , , Book Fair Field Trips , , General , , , Weekly Readers Library Fund , Lost & Damaged Books Library-Fees & Fines Vending Machine 1, , , Postage (61.00) Principal Expense other $11, $23, $20, $14,

167 George Wythe High School Type of Account Fiscal Year 2007 Fiscal Year 2008 Checking $11, $4, Savings 26, , CD 8, , Total $46, $38, Principal: Willie Bell, Jr. 167

168 George Wythe High School A July 1, 2006 through June 30, 2008 Audit Findings Receipts Collections We found teachers were collecting funds from students and not submitting the collections to the finance officer on a daily basis. During the school year, 33% (10 of 31) of the sampled receipts were held by the teachers/sponsors prior to being submitted to the finance officer for receipting and 8% (2 of 12) was held during the school year. For example, a teacher collected $ from the students, but did not submit the money for receipting to the finance officer for six days. We recommend that all money collected by sponsors be submitted to the finance officer on a daily basis. Some schools have established collection days. If that is the case, the teacher should only collect from students on the established collection days. Student Receipts and Settlement Sheets The sponsor or teacher is responsible for issuing individual receipts to the students or using a settlement sheet to record the student s name and amount received. In many instances, we found that receipts or settlement sheets were not used or they were not given to the finance officer. Therefore, we could not verify recorded receipts to source documents. We recommend that teachers use student receipts and/or settlement sheets to document the receipt of money The teachers receipts and settlement sheets should be submitted to the finance officer with the collected funds The finance officer must maintain these records for the internal audit. Deposits During the school year 15% of the sampled receipts were not deposited promptly. In addition, 7% of the sampled receipts were not deposited on a daily basis during the school year. For example, $ was held at the school for three days before a deposit was made at the bank. Richmond Public Schools administrative guidelines state that no more than $25.00 can be kept in a school overnight. If funds are received at the end of the day, the individual responsible for making deposits should use the night deposit bag. We recommend that funds be deposited in the bank on a daily basis. 168

169 George Wythe High School A July 1, 2006 through June 30, 2008 Disbursements Supporting Documentation Our review of cash disbursements disclosed 15% of the cash disbursements sampled lacked supporting documentation. Invoices and expenditure vouchers were not always available for review. We recommend that all payments must be supported by proper documents, which must be properly checked and approved. The principal must not sign checks without reviewing the expenditure voucher and invoice. Non-Student Activity Fund Disbursements Several disbursements such as staff development, equipment, teacher luncheons, and travel were made from student activity funds. The fund was charged for such disbursements. The student activity fund can be used as a working fund to pay for items that are the responsibility of the School Board. However, the principal must request reimbursement for these disbursements. We found no evidence that reimbursement requests were made and submitted to the Department of Finance for all of the non-student activity fund disbursements. These disbursements are not student related and should not be charged to the fund unless a reimbursement from the School Board will be received. We recommend that the principal submit a Request for Reimbursement Form with supporting documentation to Department of Finance for the outstanding amounts that should be reimbursed. Purchase Orders A review of purchases over $ disclosed that the school had several purchases of goods and services, during the audit period, that were not properly procured. For example, the principal purchased calculators and band supplies totaling $5, that were not procured with purchase orders. We found that the purchases were allowable student activity fund purchases and did not violate the Virginia Public Procurement Act. However, the principal did not follow the school district s purchasing policy. We recommend that all purchases over $ be entered on a purchase order and submitted to the Division of Purchasing. 169

170 George Wythe High School A July 1, 2006 through June 30, 2008 Accounting Records Deficit Account During the school year, a deficit may exist in an account, but should be cleared by the reimbursement of funds. The following account had a deficit account balance at June 30, 2008: Account Name Amount Principal Expense Other ($27,808.71) Deficit balances are not allowed in student activity funds. Deficits result in account holders with positive balances not having full access to their funds. We recommend that the principal eliminate the deficit account balance. An analysis of the deficit account must be performed and a plan of action developed to eliminate the deficit. School Board Fees and Fines School board fees and fines for lost and damaged textbooks and library fees were collected at the school but were not submitted to the Department of Finance in the month of June. The balances for school board collections are as follows at June 30, 2008: Account Name Amount Damaged & Lost Textbooks $ Library Fees & Fines $ We recommend that the principal complete a Remittance Statement and submit the statement and check to the Department of Finance. Fund Transfers Fund transfers are necessary to move money from inactive accounts to the general fund or to eliminate account deficits. However, the majority of fund transfers between accounts were not approved by the principal and the activity fund sponsor. We recommend that the school complete the transfer vouchers and get the appropriate signatures before the transfers are made in the EPES accounting system. Fund-raising Activities We found instances whereby fund-raising activities were not approved in writing by the principal. All fund-raisers require the written approval of the principal. School Board Policy 4.06 states that each principal shall develop and maintain a list of all fund-raising activities. No fund-raising activity shall be conducted by a school until the fund-raisers forms have been completed and approved. We recommend that the principal require the completion of the Fund-raising Activity Permission Request and the Fund-raising Operating Report. These forms must be maintained for review by Internal Audit. 170

171 George Wythe High School A July 1, 2006 through June 30, 2008 Inventory of Tickets During the review of the school s ticket stubs we found that the Athletic Director did not maintain an inventory of the tickets used for athletic events. All school activities that involve students, faculty, and the use of the school facility for which an admission fee is charged, will normally be controlled by the use of serial numbered tickets from an inventory of tickets under the control and supervision of the principal or designee. The designated ticket manager s duties will include ticket security, accounting for the tickets, supervision of ticket sales and reporting discrepancies to the principal. We recommend that the principal ensure that the Athletic Director or designated ticket manager s duties include securing, accounting and supervising ticket sales. Exit Conference Management Response Acknowledgements The results of audit were discussed with the school principal and finance officer on December 8, I concur. The findings were the responsibility of a prior administration. We appreciate the excellent assistance and cooperation provided us during the audit by Willie Bell Jr., Principal and William Johnson, Finance Officer. We would be happy to discuss this report with you at your convenience. 171

172 GEORGE WYTHE HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2007 Beginning Ending Account 07/01/06 Receipts Disbursements 06/30/07 Baseball $0.00 $0.00 $0.00 $0.00 Basketball , , Football , , Wrestling Basketball Girls Administration 1, , , Gym Locks Gym Suits 1, , , , Annual Publication 7, , , , Magazine Publication Cadet Corps , , Class of Class of , , , Class of , , Class of , Art Department Business Department English Department Foreign Language Guidance Department History Department ID Cards Music-Vocal Science Department Media Department Exceptional Ed. Dept Hospitality Department GWHS Cag , , Art Club Band Club , , Boys Basketball Club Boys Track Club Cheerleaders C.O.E Drama Club Dramatics Football Club French Club Future Bus Leaders 1, , ,

173 GEORGE WYTHE HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2007 Beginning Ending Account 07/01/06 Receipts Disbursements 06/30/07 Future Career Homecoming Honor Society Mentorship Club , Modern Dance Music Club Science Club Softball Club Spanish Club Student Council SOL Club 1, , , Tennis Club Wrestling Club Student Parking Permits Faculty Scholarship 4, , , , Logan/Ukrop Scholarship , , Magnet Program CTE Faculty Fund SOL Carnival 1, , Football Stadium Fine Arts Faculty Fund Relief Fund George Wythe Fund General 11, , Interest-Checking 3, , Interest-Sav & Loan 4, , Interest-VACAP 3, , Library-Fines & Fees Vending Machine Fund 2, , , GWHS Bookstore 1, , Prin. Expense Other (3,961.68) 29, , (14,390.16) $59, $200, $214, $46,

174 GEORGE WYTHE HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2008 Beginning Ending Account 07/01/07 Receipts Disbursements 06/30/08 Baseball $0.00 $0.00 $0.00 $0.00 Basketball , , Football , , Tennis Boys Track Boys Wrestling Administration , , Gym Locks Gym Suits 1, , Annual Publication 2, , , , Magazine Publication Cadet Corps , , Class of Class of Class of , , , , Class of , , , Class of , , Art Department Business Department English Department , , Foreign Language Guidance Department History Department ID Cards Music-Vocal Science Department Media Department Exceptional Ed. Dept Hospitality Department GWHS Cag Art Club Band Club , , , Boys Basketball Club Boys Track Club Cheerleaders C.O.E Distributive Education Drama Club Dramatics Football Club French Club Future Bus Leaders , , Future Career Girls Basketball ,

175 GEORGE WYTHE HIGH SCHOOL STATEMENT OF ACCOUNTABILITY SCHOOL YEAR ENDING JUNE 30, 2008 Beginning Ending Account 07/01/07 Receipts Disbursements 06/30/08 Homecoming Honor Society Mentorship Club Modern Dance Music Club Science Club Softball Club Spanish Club Student Council SOL Club Tennis Club Wrestling Club Student Parking Permits Faculty Scholarship 4, , , Logan/Ukrop Scholarship 5, , , Magnet Program CTE Faculty Fund SOL Carnival 1, , Football Stadium Fine Arts Faculty Fund Relief Fund George Wythe Fund General 11, , , Interest-Checking 3, , Interest-Savings & Loan 4, , Interest-VACAP 3, , Damaged School Property Library-Fines & Fees Lost Textbooks Vending Machine Fund , , GWHS Bookstore 1, , Prin. Expense Other (14,390.16) 14, , (27,808.71) $46, $138, $146, $38,

176 A Publication of Richmond Public Schools Richmond, Virginia In accordance with federal laws, the laws of the Commonwealth of Virginia and the policies of the School Board of the City of Richmond, the Richmond Public Schools does not discriminate on the basis of sex, race, color, age, religion, disabilities or national origin in the provision of employment and services. The Richmond Public Schools operates equal opportunity and affirmative action programs for students and staff. The Richmond Public Schools is an equal opportunity/affirmative action employer. The Section 504 Coordinator is Mr. Harley Tomey, Director of Exceptional Education and Student Services, 301 North Ninth Street, Richmond, VA , (804) The ADA Coordinator is Ms. Valarie Abbott Jones, 2015 Seddon Way, 1 st Floor, Richmond, VA , (804) The Title IX Officer is Mrs. Angela C. Lewis, Clerk of the School Board, 301 North Ninth Street, Richmond, VA , (804) The United States Department of Education s Office of Civil Rights may also be contacted at P. O. Box 14620, Washington, DC , (202) School Board Chandra H. Smith, Chairman Kimberly B. Gray, Vice Chairman Kimberly M. Bridges Betsy B. Carr Donald L. Coleman Adria A. Graham Scott Norma Murdoch-Kitt Dawn C. Page Evette L. Wilson Dr. Yvonne W. Brandon, Superintendent 176