[read complete report – pdf]

Audit Objective 

Determine whether Inlet Common School District (District) claims were adequately supported, for appropriate purposes, audited and approved before payment. 

Key Findings 

Claims that we reviewed were supported and for appropriate purposes but did not have evidence that they were audited and approved before payment. As a result, the District has an increased risk that unauthorized claims could be paid. The Board and District officials did not provide effective oversight of claim processing and payment. 

• Board members did not document the date that they authorized claims to be paid. 
• District officials used a debit card to pay for 60 purchases totaling $6,840 that were not subject to Board approval. 

Key Recommendations 

The Board should: 

• Sign and date warrants when authorizing claims for payment. 
• Monitor the Treasurer’s claims processing duties. 
• Consider discontinuing using a debit card for District purchases. 
• Approve all claims before payment. 

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