[read complete report - pdf]

Audit Objective

Determine whether the District established adequate internal controls to ensure Future Farmers of America (FFA) extra-classroom activity (ECA) cash receipts and disbursements were properly accounted for.

Key Findings

District officials need to improve internal controls over FFA cash receipts and disbursements. We found:

• District officials did not perform an annual audit of FFA records during our audit period.
• Collections did not include adequate supporting documentation for 41 deposits totaling $264,624.
• There was no supporting documentation for 15 out of 78 check disbursements tested totaling $5,871.
• FFA advisors used debit cards to make purchases totaling $74,893 without the required prior approvals.

Key Recommendations

Board and District officials should:

• Ensure an annual audit of the FFA records is completed as required by regulations.
• Ensure cash receipts and disbursements are supported by adequate documentation.
• Discontinue the use of debit cards.

District officials agreed with our findings and recommendations and indicated that they have initiated, or planned to initiate, corrective action.