Summary of Report on Financial Statements

The Pinellas County District School Board prepared its basic financial statements for the fiscal year ended June 30, 2005, in accordance with prescribed financial reporting standards.

Summary of Report on Internal Control and Compliance

The District has established and implemented procedures that generally provide for internal control of District operations.  The District generally complied with significant provisions of laws, administrative rules, regulations, contracts, and grant agreements.

Summary of Report on Federal Awards

We audited the District’s Federal awards for compliance with applicable Federal requirements.  The Child Nutrition Cluster, Special Education Cluster, and Federal Pell Grant programs were audited as major Federal programs.  The results of our audit indicated that the District materially complied with the requirements that were applicable to the major Federal programs tested.  However, we did note compliance and internal control findings that are summarized below.

Federal Awards Finding No. 1:  Cash Management

Our review disclosed that the District had not remitted interest earnings totaling $9,507 on advances of Federal cash for the fiscal year June 30, 2005, to the Florida Department of Education.

Federal Awards Finding No. 2:  Special Tests and Provisions – Competitive Food Sales

The District did not comply with applicable Federal regulations and State rules relating to the sale of competitive food and beverage items. Contrary to State rules, carbonated beverages were sold to students in the cafeteria or in the immediate proximity of the cafeteria at three high schools. Additionally, competitive foods were sold to students outside the authorized times at two of these schools.

Federal Awards Finding No. 3:  Special Tests and Provisions – Fiscal Administration

The District had not performed a reconciliation between the District’s financial assistance accounting records maintained at the District Office, the financial assistance disbursement records maintained at the Pinellas Technical Education Centers, and the Grants and Administration Payment System.

Federal Awards Finding No. 4:  Special Tests and Provisions – Post-Withdrawal Disbursements

Improvements were needed in District procedures over the timely notification and disbursement of post‑withdrawal disbursements for students determined to have earned Pell Grant funds in excess of the funds disbursed at the time of withdrawal.

Audit Objectives and Scope

Our audit objectives were to determine whether the Pinellas County District School Board and its officers with administrative and stewardship responsibilities for District operations had:

• Presented the District’s basic financial statements in accordance with generally accepted accounting principles;

• Established and implemented internal control over financial reporting and compliance with requirements that could have a direct and material effect on the financial statements or on a major Federal program;

• Complied with the various provisions of law, administrative rules, regulations, and contracts and grant agreements that are material to the financial statements, and those applicable to the District’s major Federal programs; and

• Corrected, or are in the process of correcting, instances of noncompliance related to Federal awards disclosed in previous audit reports.

The scope of this audit included an examination of the District’s basic financial statements and the Schedule of Expenditures of Federal Awards as of and for the fiscal year ended June 30, 2005.  We obtained an understanding of internal control and assessed control risk necessary to plan the audit of the basic financial statements and Federal awards.  We also examined various transactions to determine whether they were executed, both in manner and substance, in accordance with governing provisions of laws, administrative rules, regulations, contracts, and grant agreements.

Audit Methodology

The methodology used to develop the findings in this report included the examination of pertinent District records in connection with the application of procedures required by auditing standards generally accepted in the United States of America, applicable standards contained in Government Auditing Standards issued by the Comptroller General of the United States, and Office of Management and Budget Circular A-133.

The Superintendent's written response to the audit findings and recommendations is included in this report and may be viewed on the Auditor General Web site.