Audit of. Migrant Scholarship Program

Transcription

1 Audit of Migrant Scholarship Program December 11, 2009 Report

2 Audit of Migrant Scholarship Program Table of Contents PURPOSE AND AUTHORITY 1 Page SCOPE AND METHODOLOGY 1 BACKGROUND 2 CONCLUSIONS 1. $37,500 In Scholarships Awarded During 2008 and Documentation Supporting Scholarships Awarded 2 3. District and School Did Not Maintain Donations Letters 3 APPENDIX Management s Response 4

3 THE SCHOOL DISTRICT OF LUNG CHIU, CPA ARTHUR C. JOHNSON, Ph.D. PALM BEACH COUNTY, FLORIDA DISTRICT AUDITOR SUPERINTENDENT OFFICE OF THE DISTRICT AUDITOR 3346 FOREST HILL BLVD., B-302 WEST PALM BEACH, FL (561) FAX: (561) M E M O R A N D U M TO: FROM: Honorable Chair and Members of the School Board Arthur C. Johnson, Superintendent of Schools Chair and Members of the Audit Committee Lung Chiu, CPA, District Auditor DATE: December 11, 2009 SUBJECT: Audit of Migrant Scholarship Program PURPOSE AND AUTHORITY In response to the request from staff, we have audited the Migrant Scholarship Program. The primary objective of this audit was to determine whether the program s fund was expended on scholarship awards to eligible students. SCOPE AND METHODOLOGY The review was performed by Arthur Hamilton during June and August 2009, and included (1) reviewing Migrant Scholarship Program s records for School Years 2008 and 2009, and (2) interviewing District staff. Draft findings were sent to the Department of Federal and State Programs for review and comments. Management response is included in the Appendix. We appreciate the courtesy and cooperation extended to us by staff during the audit. The final draft report was presented to the Audit Committee at its December 11, 2009, meeting. 1

4 BACKGROUND The Migrant Scholarship Program, funded by outside organizations for students who are children of migrant workers, was coordinated by the Department of Multicultural Education (Multicultural Education) until the end of School Year Effective July 2009, this program was transferred to the Department of Federal and State Programs. To be eligible for the scholarship, students must be children of migrant workers and complete the application through the school s guidance department. The application process included: 1. Submitting to Multicultural Education a completed application, 2. Meeting the requirements, 3. Passing the interview, and 4. Registering in an institute of higher learning. This audit produced the following major conclusions. CONCLUSIONS 1. $37,500 In Scholarships Awarded During 2008 and 2009 Funding for School Years 2008 and 2009 came from the Farmworker Coordinating Council of Palm Beach County, Inc., the Union Congregational Church, the Women s Association of the Presbyterian Church, and others. All donations and expenditures for the program were accounted for through Pahokee Elementary School s Internal Funds Account. Total contributions for the scholarship program were $2, and $18, in School Years 2008 and 2009 respectively. Multicultural Education awarded scholarships to students who met all the requirements based on the available funds. Nineteen students received a total scholarship of $20,500 in 2008, and 17 students received a total scholarship of $17,000 in Except for a total of $300 that was spent on the 2008 Scholarship Award Banquet, all donations collected were spent on the scholarship awards. Management s Response: The account for managing the scholarships was moved to the District s accounting location (internal accounts) for the Migrant Program. The scholarship program is no longer accounted for through Pahokee Elementary School s Internal Funds Account. (Please see page 4.) 2. Documentation Supporting Scholarships Awarded Effective July 2009, the fiscal responsibility of disbursing scholarship funds was transferred to the Department of Federal and State Programs. During the 2008 and 2009, scholarship disbursements were processed by Pahokee Elementary School and supported by (1) copies of 2

5 letters from Multicultural Education indicating scholarship recipients and amount awarded, and (2) documentation for recipients registering with an institute of higher learning. Multicultural Education had a list of scholarship recipients and the amounts awarded during School Year However, some of the following records were either missing or discarded by the department: List of scholarship recipients and the amounts awarded during School Year Documentation for scholarship recipients registering with an institute of higher learning. Records of applications received and the final decision for scholarship awards. The District should ensure accurate and complete records are kept for the scholarship program. These records should include: Letters from the District indicating the scholarship recipients and amount awarded. Proof of recipients registering with an institute of higher learning. Records for applications and the award decision. Management s Response: The Department of Federal and State Programs will adhere and put into place the audit recommendations. Accurate and complete records will be kept for the Scholarship Program and will include: 1. Letters from the District indicating the scholarship recipients and amount awarded 2. Proof of the recipients registering with an institute of higher learning 3. Records for application and the award decision (Please see page 4.) 3. District and School Did Not Maintain Donations Letters Neither Multicultural Education nor Pahokee Elementary School could provide copies of donors letters of intent or related documentation for donations. Consequently, there was no assurance that all donations were accounted for in the Migrant Scholarship Program. The District should request for and maintain a copy of the letters of intent from donors. This should help ensure that all funding provided by donors is expended as intended. Management s Response: All correspondences of intent from donors and copies of donation checks will be kept on file to ensure that all of the donation are deposited and allocated according to the donor s expressed intent. (Please see page 4.) End of Report 3

6 Appendix Management s Response 4