[read complete report – pdf]

Audit Objective 

Determine whether Lindenhurst Union Free School District (District) officials ensured that funds collected from recreational and educational programs were properly recorded, deposited and reported.

Key Findings 

District officials did not ensure that funds collected from all recreational and educational programs were properly recorded, deposited and reported. As a result, there was an increased risk of improper accounting of and potential theft of collections without detection.

We reviewed $311,876 collected by the business office from five District recreational and educational programs and determined that: 

• In-person collections totaling $130,568 were not recorded in a collection log.
• Employees made 25 deposits totaling $29,639 between 11 and 26 days after District programs recorded receipts on a transmittal form.
• Treasurer reports were presented to the Board between 65 and 261 days after the end of the month being reported.

Key Recommendations 

• Maintain a log which records the date, amount and payor of program funds received.
• Update District policy to provide guidance to ensure the timely deposit of funds collected.
• Ensure that the Treasurer’s monthly reports are presented to the Board in a timely manner.

District officials agreed with our recommendations and indicated they plan to initiate corrective action.