Pembroke Central School District – Extra-Classroom Activity Funds (2023M-136)

Issued Date

April 19, 2024

Audit Objective

Determine whether Pembroke Central School District (District) officials properly accounted for and appropriately used extra-classroom activity (ECA) funds.

Key Findings

District officials did not properly account for all ECA funds and, because some funds were held for substantial amounts of time before they were deposited, collections were not appropriately safeguarded. As a result, collections were not recorded and deposited in a timely manner, and unsupported disbursements were authorized and processed. As such, we could not determine whether all ECA funds were properly used. For example:

One club advisor did not deposit more than $3,500 in club fundraising activities until our audit began, which was more than six months after the club’s fundraising activity had taken place.
The supporting documentation for 14 payments, totaling approximately $11,000, was not sufficiently itemized to clearly identify the quantity or cost of items purchased.

These errors and discrepancies occurred because the faculty auditor (auditor) was not overseeing ECA funds to verify the accuracy and completeness of the records and activity as the Board required.

Key Recommendations

Ensure that all ECA activity is performed and recorded in compliance with the Board-adopted policy.
Ensure that collections are deposited within a timely manner.

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

Audit Period

July 1, 2021 – June 13, 2023

Background

The District serves the Towns of Alexander, Batavia, Darien and Pembroke in Genesee County. The five-member Board of Education (Board) is responsible for the District’s general management and control of educational and financial affairs.

The Superintendent of Schools (Superintendent) is the chief executive officer responsible, along with other administrative staff, for the District’s day-to-day management under the Board’s direction.

ECA funds are administered by and for the students’ benefit. Students raise and spend ECA funds to promote their general welfare, education and morale, and to finance the student body’s appropriate extracurricular activities.

Each ECA class and club have a student treasurer and faculty advisor or advisors. Student treasurers, with assistance from faculty advisors, are responsible for collecting money, issuing receipts, completing disbursement forms, and maintaining a ledger showing all collections and disbursements and a daily running balance. The Board-appointed central treasurer is responsible for accounting for ECA funds. The Board-appointed auditor is responsible for overseeing ECA activities.