Audit Objective 

Determine whether the Malverne Union Free School District (District) Extra-Classroom Activity (ECA) clubs and the central treasurer properly collected, recorded, deposited and disbursed ECA funds.

Key Findings 

The clubs and the central treasurer did not properly collect, record, deposit and disburse ECA funds.

• The central treasurer did not issue receipts or ensure student treasurers issued receipts for cash collections; 47 deposit request forms totaling $113,667 did not contain required items such as student signatures and 30 collections totaling $55,025 were not deposited within seven days of receipt as required. He also issued nine checks totaling $44,548 for two clubs that did not have sufficient funds when the disbursements were made.
• Building principals did not retain cash collection logs from the safes where club money was placed before deposit and club advisors did not ensure student treasurers maintained complete and accurate records of financial activities.
• The central treasurer did not ensure that 126 check request forms totaling $159,461 had the required items such as club advisor signatures.
• The central treasurer improperly signed the ECA director’s name on 84 checks totaling $130,127.

Key Recommendations 

Issue receipts for all collections, appropriately complete deposit and check request forms, sign checks as appropriate, maintain independent accounting records and retain supporting records for financial activities.

District officials generally agreed with our findings and indicated they will initiate corrective action.