Purpose of Audit

The purpose of our audit was to examine the student enrollment and billing processes for the period July 1, 2011, to May 31, 2013.

Background

The Elmwood Village Charter School, located in the City of Buffalo, Erie County, is governed by a Board of Trustees that currently has 10 members, including two parent representatives. The School’s operating expenses for the 2011-12 fiscal year were approximately $2.7 million. These expenses were funded with revenues of approximately $3.4 million derived from billing area school districts for resident pupils and from certain State and Federal aid attributable to these pupils.

Key Findings

• For the 2011-12 fiscal year we compared billings totaling approximately $3.2 million for all five school districts of residence to revenues received and reported and did not identify any discrepancies. We also reviewed the relevant factors included in the calculation for all five final billings to the school districts and did not identify any discrepancies in the School’s calculation.
• We selected a judgmental sample of 20 students to determine if billings to the school districts of residence were accurate and supported. Although the results of our testing did not disclose significant errors or irregularities, we identified control deficiencies with the School’s residence verification process. The School does not verify student information by periodically requiring new proof of residence, such as a utility bill, or requiring that a new proof of residence be submitted when a student’s address changes.

Key Recommendation

• Periodically verify the residence of students and require new proof of residence when a student moves.