Summary

Summary of Report on Financial Statements

The One Room School House Project, Inc., has prepared its financial statements for the fiscal year ended June 30, 1998, in accordance with prescribed financial reporting standards.

Because of the unprecedented nature of the year 2000 issue, we do not provide assurance with regard to the ultimate impact of the year 2000 issue on the One Room School House Project, Inc.

Summary Report on Compliance and Internal Control

The School generally complied with significant provisions of laws, administrative rules, regulations, contracts and grants, and other guidelines. The School has established and implemented procedures which generally provide for internal control of School operations. We did note compliance and internal control findings and other matters which are summarized in the Summary of Audit Findings section below.

Summary of Audit Findings

Board Meetings

School records disclosed that the Board of the One Room School House Project, Inc., held five meetings during the 1997-98 fiscal year. However, contrary to the provisions of Section 286.011(1), Florida Statutes, School records did not indicate that the Board meetings were advertised in a local newspaper or that reasonable notice was posted in a public place. We recommend that the Board consider advertising in a local newspaper or placing notices at a public place to notify the general public of all meetings of the Board pursuant to Section 286.011, Florida Statutes.

Employee Fingerprinting

School procedures provided for evidence of employee fingerprinting records to be maintained by the Alachua County District School Board. Our review of fingerprint records at the Alachua County District School Board indicated that the fingerprint process, including the related background checks, had not been completed for two School employees. We recommend that the School enhance its procedures to timely ensure that all employees are fingerprinted and that such procedures provide for the School’s retention of appropriate documentation to evidence its compliance with law.

Procedures and Practices

Established procedures and practices provide guidance for employees in carrying out their duties and responsibilities and in conducting the day-to-day operations of the School. School personnel indicated that formal operating procedures and practices had not been developed and reduced to writing. Such procedures and practices may be beneficial to address such matters as human resource administration; budget preparation and monitoring; electronic transfers of money; accountability and control of tangible personal property; receipt, deposit, and disbursement of funds; record retention; and the acquisition of goods and services. The effective implementation of these enhanced procedures and practices may preclude future record keeping difficulties such as those experienced during the 1997-98 fiscal year which included control weaknesses over check signing and unsupported disbursements. For example, we noted 31 purchases totaling $1,358.80 during the 1997-98 fiscal year for which invoices supporting the disbursement could not be located.

Year 2000

Unless corrected before January 1, 2000, many computer applications will either stop working or, worse, begin producing erroneous results on or before that day. The year 2000 problem is a two-digit-year representation problem. Although the year 2000 problem’s impact on the operations of the School may be limited due to the size of the School’s operations and the limited number of computer resources effected, School management should take appropriate action to ensure that existing computer resources and any computer resources purchased in the future are year 2000 compliant.

The President’s written response to the audit findings and recommendations included in audit report No. 13358 is presented as Exhibit E.