Audit of Northmore Elementary School's Safety Patrol Fundraisers 2002-2003 June 23, 2003 Report 2003-11
MISSIONSTATEMENT The School Board of Palm Beach County is committed to excellence in education and preparation of all our students with the knowledge, skills, and ethics required for responsible citizenship and productive employment. Arthur C. Johnson, Ph.D. * Superintendent of Schools School Board Members Tom Lynch, Chair William C. Graham Vice Chair* Paulette Burdick* Monroe Benaim, M.D. Mark Hansen Sandra Richmond Debra Robinson, M.D. Audit Committee Members Cindy Adair, Chair Georgette B. Carroll Max Davis Kevin James Roger T. Presas Richard Roberts Noah Silver JulieAnn Rico Allison* Shelley Vana* Thais Villanueva* *Ex-Officio Audit Committee Members
Audit of Northmore Elementary School's Safety Patrol Fundraisers 2002-2003 Table of Contents Page PURPOSE AND AUTHORITY SCOPE AND METHODOLOGY BACKGROUND 1 1 1 CONCLUSIONS 1. Commingling of Funds 2 2. Monies Collected not Turned in to Bookkeeper Timely 2 3. Fundraiser Reports not Completed Timely 3 4. Ticket Reports not Prepared 3 5. Fundraising Approval not Obtained Until After Activities Completed 3 APPENDIX Management's Response 4
THE SCHOOL DISTRICTOF PALM BEACH COUNTY, FLORIDA OFFICE OF DISTRICTAUDITOR 3346 FOREST HILL BOULEVARD. SUITE 8-302 WEST PALM BEACH. FL 33406 (561) 434-7335 FAX: (561) 434-8652 MEMORANDUM LUNG CHIU, CPA DISTRICT AUDITOR ARTHUR C. JOHNSON, Ph.D. SUPERINTENDENT TO: FROM: Honorable Chair and Members of the School Board Arthur C. Johnson, Ph.D., Superintendent of Schools Chair and Members of Audit Committee klt- Lung duu, CPA, District Auditor DATE: June 23, 2003 SUBJECT: Audit ofnorthmore Elementary School's Safety Patrol Fundraisers 2002-2003 PURPOSE AND AUTHORITY In response to the request of the school principal, we have audited the school's Safety Patrol Fundraisers for the period October 1,2002, through April 4, 2003. The primary objectives of the audit were to determine whether 1) the procedures were followed to accurately collect, deposit, and report fundraiser money, and 2) the fundraiser forms were properly completed, verified, signed, and approved as required by Internal Funds Accounting Handbook. SCOPE AND METHODOLOGY The audit was performed in accordance with Government Auditing Standards by Ellen Steinhoff, CISA, during March 14, 2003, through April 10, 2003. This audit included interviews with school staff and review of:» Safety Patrol Fundraising ApplicationIRecap Forms.» Safety Pat~ol Ge!leral Ledger AccoU!lts.. _» Safety Patrol Payment Records as of April 2, 2003 (for the Atlanta field trip).» Safety Patrol Monies Collected Reports.» Safety Patrol Field Trip Room Assignments (attendees).» Applicable Florida Statutes, Department of Education Rules, School Board Policies, and Internal Funds Accounting Handbook procedures. BACKGROUND Due to security concerns, the 2003 Safety Patrol trip to Washington, D.C. was cancelled. Subsequently, the parents group recommended a replacement three-night trip to Atlanta, Georgia on April 1-4, 2003. The Atlanta trip cost was $320 per child. To help reduce this AN EQUAL OPPORTUNITY EMPLOYER
amount, each child received credits based on the amount of monies raised from tickets and candy sold. The school's safety patrol has held five fundraisers, four for the cost of the Atlanta trip, and one for an annual end-of-year one-day field trip. Thirty-one students and five chaperones attended the Atlanta trip. Two ofthe students' expenses were subsidized by the school fund. Draft findings were sent to the school principal 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 June 23, 2003 meeting. CONCLUSIONS This audit produced the following major conclusions: 1. Commingling of Funds. The sponsor wrote a $400 personal check payable to the school on December 9, 2002. Apparently, the sponsor commingled personal money with the fundraising money. Fundraiser money should not be commingled with an employee's personal money. In addition, on March 7,2003, the sponsor wrote a $642 personal check to the school. Money should be properly accounted for and signed off by both the sponsor(s) and bookkeeper immediately following any fundraiser activity. Management's Response: Concurs. (Please see page 4.) 2. Monies Collected not Turned in to the Bookkeeper Timely. The sponsor did not turn in the money collected to the bookkeeper on a timely basis. The delay ranged from 21 to 53 days. Redbook Chapter 7 Section III - 1.4(b and c) requires, "Collections made outside of the school office must be turned in to the school office no later than the next business day...in any event, funds collected must be deposited within five (5) working days after receipt". All fundraising money should be turned in daily to the bookkeeper directly or placed in the school's drop safe for deposit. Management's Response: Concurs. (Please see page 4.) 2
3. Fundraiser Reports not Completed Timely. Although it is required by the Fundraising ApplicationiRecap Form (PBSD0153) that "upon completion ofthis fundraising activity, complete and return required forms to the bookkeeper for verification ", the Recap sections oftwo forms were not completed and signed by the sponsor until three to four months after the fundraisers were completed. The tardiness in properly completing fiscal information on the fundraiser report compromises the fiscal accountability and controls. Management's Response: Concurs. (Please see page 5.) 4. Ticket Reports not Prepared. The sponsor did not prepare the Master Ticket Sellers Report (PBSD0158) or a Ticket Sellers Report (PBSD0157) for two fundraisers where tickets were sold, although they are required by the Internal Funds Accounting Handbook. The lack ofthese reports prohibits sound business practices in safeguarding school assets. Management's Response: Concurs. (Please see page 5.) 5. Fundraising Approval not Obtained Until After Activities Completed. Five Safety Patrol Fundraisers were held during 2002-2003. As required by the Fundraising ApplicationiRecap Form (PBSD0153), the form "must be completed by the activity sponsor, approved by the principal or person designated to oversee school activities and submitted to the bookkeeper for account assignment before any activity is started... n. However, three ofthe forms were not completed for approval and signed by the sponsor until after the fundraisers were completed. The delay in completing the three forms ranged from one day to three months. Management's Response: Concurs. (Please see page 5.) 3
Appendix Management's Response NORTHMORE ELEMENTARY SCHOOL Magnet School for Life Sciences, Mathematics, and Technology Jo Anne Rogers, Principal Julian Gibbs. Ass't Principal Nancy Robinson, Ass't Principal/Magnet Progrom ImoGene Clarke, Guidance Counselor Darlene Starling, ESE Coordinator Michael Washill, SAC Director MEMORANDUM TO: FROM: Lung Chiu, CPA District Auditor Jo Anne Rogers, Ef!t Principal DISTRICT AUDITOR DATE: May 19,2003 SUBJECT: Safety Patrol Fundraisers Audit/Management's Response Thank you for your support to Northmore Elementary School, particularly the timely assistance you provided in my audit request of the Safety Patrol Fundraisers. After rev.iew of the draft report, I am responding to Conclusions 1-5 in the following: Conclusion 1. I concur. Co-Mingling of Funds. NotIJtion... School records verify that the sponsor wrote a $400 personal check on December 9, 2002, and a $642 personal check on March 7, 2003. Conclusion 2. Monies Collected not Turned in to the Bookkeeper Timely. I concur. NotIJtion... As a result of a review of account ledgers held each marking period, and information presented to me by staff members on February 28, 2003, procedural and monetary discrepancies were identified. Following protocol, I made immediate contact with Ms. Gloria Richeson and formal assistance was requested. ',i ("'Wlftlllll1\ ilflf!::" \,Iu,,.,/\" Phone (561} 881-4759 4111 North Terrace Drive, West Palm Beach, FL 33407 Fox (561) 840-320: 4
Appendix Management's Response Page 2 Conclusion 3. Reports not Completed Timely. I concur. NotaUon... I requested both Recap forms from the sponsor. Requests came in the form of verbal and written. In a meeting held with the treasurer and co-sponsors, I learned that the first Fundraiser Application/Recap Form had been "destroyed." In this casel "destroyed" meant, thrown away, according to the School Treasurer and sponsor. I also requested the second Application/Recap form. It was eventually completed, but after the car Wash. Conclusion 4. Ticket Reports not Prepared. I concur. Notation.. Schoo/ records indicate that forms PBSD0158 and PBSD0157 were not completed for either fundraiser. Conclusion S. Fundraising Approval not Obtained Until After Activities Completed. I concur. Notation... As mentioned in Conclusion 3, the first and original application/recap form for the first car Wash Fundraiser was requested and subsequently destroyed by the sponsor. Approval was made and indicated on that form. The sponsor's Signature was in the incorrect place. 5
Appendix Management's Response Page 3 Although requested, the second Application/Recap Form was submitted, however not according to procedures. As a result, the second Application/Recap form remains unsigned due to discrepancies.. Moreover, both car washes were held on Saturdays and at off-campus locations. The third form in question was from the second sponsor of a different fundraiser, Movie and Popcorn. Although verbal permission was given, it was an oversight that I did not sign the form timely. It had been filed in the Treasurer's office. Northmore Elementary School Monitoring System and Procedures Fundraiser procedures are outlined in Northmore's Teacher Handbook and formally reviewed with staff members at the beginning of each school year. Expectations for these procedures are separately reviewed with Bookkeeper. For added accuracy, I arrange.for a visiting Bookkeeper to review Northmo~'s records and procedures. This year, Mrs. Janice Hardy, with permission from her principal, Mrs. Janie Peters, conducted a "pre-audit" during the 1 st marking period. Both Assistant Principals and the School Treasurer were formally requested to attend this meeting and the resulting discussions pertaining to procedures. The assistant principal-sponsor did not attend this meeting. Each marking period, I review account ledgers with the School Treasurer. The School Treasurer reviews the ledgers on a weekly basis. Principal reviews and signs monthly reports. Cross-checking occurs between Principal, Assistant Principal and Treasurer. 6
Appendix Management's Response Page 4 Northmore Elementary School Corrective Actions Taken and to be Taken At the time when discrepancies surfaced, I used a personal day (March 3, 2003) to review facts and details. I wanted to maintain the strictest of confidentiality.. Upon return to work. March 4, 2003, I contacted Gloria Richeson, Area 3 Superintendent, and held a meeting with the School Treasurer and both sponsors, to review facts and details pertaining to the discrepancies. Formal assistance from the District Auditor was requested. Although this matter was ongoing throughout the FCAT testing Window, it was viewed as a priority and handled timely as such. A second meeting was held March 13, 2003, with the involved parties and the district auditor, for the purpose of reviewing fiscal accountability, procedures, and student individual accounts for the Atlanta trip. A third, and separate meeting was held with the School Treasurer to review and discuss improvements of monitoring system and procedures. I assisted and supported the request and directions made by the auditor, Ellen Stienhoff, by providing requested documents and rearranging my calendar during the testing window. Usted below are Actions To Be Taken: o Enlist further direction from the Area Superintendent; o Follow recommendations from the auditors; o Require immediate deposit of monies to be made at the school for. weekend and off-campus fundraising activities by making prior arrangements with administrative designee and Treasurer; o cancel fundraiser activities if supporting documents are not submitted one week prior for approval and Signature; o Maintain a running record of open fundraisers by the Treasurer for the purpose of increasing the awareness of timelines and recaps; o o Review and revise internal account section of Teacher Handbook;.Although procedures are outlined, a copy of the Application/Recap Form will be added to the Blackline Masters; and, Maintain "pre-audit" system. Although Internal account procedures have been properly maintained in my tenure as Principal, as reflected in Northmore's FY02 Perfect Audit, this is an isolated incident, which was promptly and procedurally addressed. Again, thank you for your support to Northmore Elementary. 7