Audit Objective

Determine whether Middle Country Central School District (District) officials provided proper oversight of extra-classroom activity (ECA) funds.

Key Findings

The Board of Education (Board) and District officials did not provide proper oversight of the ECA funds. When complete records are not maintained, it increases the risk of errors and/or theft without detection.It also compromises the Board’s ability to monitor the financial operations of the ECA clubs.

The Board did not:

• Properly appoint the central treasurer and faculty auditor and did not appoint a faculty counselor.
• Ensure each club maintained a separate set of records from those of the central treasurer.

District officials did not ensure:

• 15 of 39 activity club collections totaling $72,998 and 20 of 39 cash disbursements totaling $44,395 were recorded by the ECA club.
• 16 deposits totaling $23,680 were deposited timely.

Key Recommendations

• Appoint a faculty auditor whose duties are distinct and separate from the duties of the other ECA officers.
• Maintain complete and accurate ECA ledgers.
• Ensure that all funds are deposited by the close of each school week, as required by District policy.

District officials agreed with our recommendations and indicated that they have already implemented most of them.