Determine whether District officials properly accounted for the Continuing Education Department’s (Department) financial activity.
- Community education financial activity was not accounted for in the correct fund.
- Certain literacy program revenue was improperly recorded as community education revenue.
- Fringe benefit costs were disproportionately charged to the community education program expenditure account instead of the literacy program, totaling $728,000.
- Officials did not always properly record literacy program revenue in the correct fiscal year.
- Properly account for community education activity in the general fund.
- Accurately record revenue and expenditures in the correct program.
- Recognize revenue in accordance with the modified accrual basis of accounting.
District officials agreed with our findings and indicated they planned to initiate corrective action.