Audit Objective
Determine whether Renaissance Academy Charter School of the Arts (School) officials ensured non-payroll disbursements (disbursements) were properly reviewed and approved, supported and for appropriate School purposes.
Key Findings
School officials did not ensure that all disbursements were properly reviewed and approved, adequately supported and certain disbursements were made without knowing what was purchased or whether the disbursements were for appropriate School purposes.
During the period reviewed, the School’s disbursements totaled $4.8 million and although our prior audit and other external audits noted School disbursements lacked adequate supporting documentation, sufficient corrective action was not taken, including adopting adequate written disbursements policies.
Sixty-two percent of the non-credit card disbursements tested totaling $276,871 and 86 percent of the credit card charges tested totaling $43,439 lacked both an itemized invoice or receipt and a documented School purpose.
In addition, the Chief Education Officer (CEO) and Chief Operating Officer (COO) have the ability to make purchases, prepare checks and modify or delete data in the financial software and the CEO signs checks. The lack of adequate controls increases the risk for disbursements to be made for non-School purposes and accounting records being altered without detection.
Key Recommendations
Ensure disbursements are reviewed, approved, adequately supported and for a School purpose.
School officials disagreed with certain aspects of our findings but indicated they will initiate corrective action. Appendix B includes our comments on the School’s response letter.