Audit Objective
Determine whether the KIPP Troy Prep Charter School (School) Board of Trustees (Board) and officials accurately billed and collected tuition, and deposited and recorded collections in a timely manner.
Key Findings
School officials and staff accurately billed and collected resident district tuition for the sample of 50 students we reviewed. They also accurately recorded and deposited intact the 30 collections we reviewed. However, they did not deposit collections in a timely manner. Officials and staff did not:
- Deposit and record district tuition collections totaling $5.5 million within three days, as required by the School’s policy.
Because School officials did not deposit collections in a timely manner, the School did not have access to the undeposited funds, and the risk of loss, diversion or theft of School funds was increased.
Key Recommendation
- Deposit and record collections within three days, in accordance with the School’s policy.
School officials generally agreed with our recommendations and indicated they planned to initiate corrective action.