Summary

Summary of Report on Financial Statements

The Hillsborough 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.  However, we did note an internal control finding that is summarized below.

Finding No. 1:  Proper segregation of duties did not always exist for certain financial module processes in the District’s computerized accounting system.

Summary of Report on Federal Awards

We audited the District’s Federal awards for compliance with applicable Federal requirements.  The Child Nutrition Cluster, Twenty-First Century Community Learning Centers, Education Technology State Grants, and Child Care and Development Fund Cluster 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:  Special Tests and Provisions - Private School Participation

The District did not timely consult with private school officials or communicate in writing with the private schools in Hillsborough County with regard to participation in the Twenty-First Century Community Learning Centers grant for the 2004-05 fiscal year.

Federal Awards Finding No. 2:  Special Tests and Provisions – On-Site Reviews

In our tests of 44 on-site reviews of food service meal counting and claiming systems, we noted 14 instances in which deficiencies were noted in the reviews, but for which the follow-up, on-site reviews were not performed timely (ranging from 6 to 37 days late).

Federal Awards Finding No. 3:  Special Tests and Provisions – Competitive Food Sales

The District’s review of competitive food sales at schools during the 2004-05 fiscal year noted ten schools where these sales were not limited to one hour following the close of the last lunch period.  We noted similar instances at Plant High School.

Audit Objectives and Scope

Our audit objectives were to determine whether the Hillsborough 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 all deficiencies 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.