Purpose of Audit

The purpose of our audit was to evaluate internal controls over cafeteria cash receipts for the period July 1, 2014 through December 30, 2015.

Background

The Lisbon Central School District is located in the Towns of Lisbon, Madrid and Waddington and the City of Ogdensburg in St. Lawrence County. The District, which operates one school with approximately 600 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $12.9 million.

Key Findings

• The Board has not adopted policies and District officials have not developed procedures governing cafeteria cash receipts.
• The food service manager did not perform an independent reconciliation of cash sales to deposits or review the work of those who performed incompatible cash receipt duties.
• The Treasurer had access to the cafeteria’s point-of-sale (POS) system that she did not need to fulfill her job responsibilities.

Key Recommendations

• Adopt detailed policies and establish written procedures for collecting and accounting for cafeteria cash receipts.
• Require the food service manager to review the cashier’s daily reconciliations and verify that the amounts collected agree with deposits on the bank statements.
• Ensure that the Treasurer has only those access rights within the POS system that are needed for her position.