We also issued six letter reports to the following school districts: Deposit, Dryden, Greene, Ithaca, Laurens and Livingston Manor.
Purpose of Audit
The purpose of our audit was to determine if District officials properly accounted for extra-classroom cash receipts and disbursements for the period July 1, 2013 through May 8, 2015.
Background
Extra-classroom activity funds are defined by the New York State Education Department as "funds raised other than by taxation or through charges of a board of education (Board), for, by or in the name of a school, student body or any subdivision thereof." Extra-classroom activity funds are those operated by and for the students. Students collect funds for extra-classroom activities from a number of sources such as admissions, membership dues, sales and donations. Students raise and spend these funds to promote the general welfare, education and morale of all students and to finance the normal and appropriate extra-curricular activities of the student body.
Key Findings
- Boards and District officials did not ensure that policies were being followed or that procedures were adequate to ensure cash receipts and disbursements were properly accounted for.
- We reviewed 442 cash receipts totaling $299,000 and found that 158 receipts totaling $113,800 were unsupported and 193 receipts totaling $164,400 were submitted to the Treasurer either untimely or we could not determine timeliness due to inadequate records.
- District officials lacked effective oversight of the activity funds’ disbursements. We reviewed 330 disbursements totaling $281,000 and found that 72 disbursement totaling $64,000, or 23 percent, lacked appropriate support at the club level.
Key Recommendations
- The Board should adopt, and/or ensure District officials enforce, adequate policies for extra-classroom activity funds, including procedures for cash receipts, cash disbursements and recordkeeping.
- District officials should ensure that the Treasurer, faculty advisors and student treasurers are follow the District’s cash receipts and disbursements policies and procedures and maintain adequate and appropriate accounting records.
- The Treasurer and faculty advisors should provide adequate oversight to student treasurers.