[read complete report - pdf]

Audit Objective

Determine whether extra-classroom activity (ECA) clubs and the central treasurer properly accounted for ECA collections and disbursements.

Key Findings

• The Board and District officials did not adopt and implement procedures governing the operations of ECA funds, as required.
• The central treasurer did not have supporting documentation for 30 receipts totaling $137,837. Also, three clubs did not maintain supporting documentation for 39 cash receipts totaling $168,491.
• For five collections totaling $6,879, sales tax totaling $473 was not set aside for remittance to the New York State Department of Taxation and Finance (State).

Key Recommendations

• Update and amend the ECA fund policy and establish written procedures to supplement it.
• Maintain records, supporting documentation and ledgers for all receipts and disbursements.
• Collect and remit applicable State sales tax.

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