Tuesday, August 18, 2015

Finance and Operations: student activity fund audit

Matt Hunt, auditor (who also does the federal single audit) is here for this one
Allen: state never adopted regs on student activity accounts, but MASBO has suggestions, which we follow
student activity accounts at all of our secondary schools
we audit annually "above and beyond what we are required to do"
This is the FY14 audit; FY15 hasn't yet been done
because the FY14 audit was completed during FY15, some findings will be the same
many about reconcilation of accounts and such
Hunt: goal is to do FY15 in a more timely fashion, so things can be cleaned up for FY16
report breaks down by each school
summarize procedures performed by auditor
summarize different types of findings: for several schools, a separate fund created for interest income--those funds dispersed by School Committee policy; checking account reconciliations not signed and dated (creates an audit trail); checking account reconciliations to be prepared by month's end; graduating class funds still in existance after graduation (needs to be process for closing accounts); overarching reconciliation of student activity account balances with bank balance (variances, often timing oriented); very isolated issues in receipts and dispersements (tested 200; found issues with 5)..."most internal control issues...most important part are monthly reconcilation which are being done"
work was all done remotely due to assist from business office
Foley: really about driving us towards best practice
"some minimal human area...some policy areas"
consider a vote today on a policy that within 90 days funds..?
Allen: have an existing policy, just need to update
a number of options: can withdraw and create a new fund for reunions, can donate to upcoming senior class; must take a vote on their action before graduation
MOTION TO HOLD pending FY15 report

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