Summary

This operational audit for the period July 1, 2004, through June 30, 2005, disclosed the following:

Finding No. 1:         Cash Collections – Extended Day Enrichment Program (EDEP)

Improvements were needed in control procedures over EDEP fees collected at various elementary schools to ensure the proper separation of duties, the documentation of transfers of collections between employees, and the documentation of comparisons of attendance data to collections and deposits (fee audits).

Finding No. 2:        Cash Collections – Pre-K Programs

Improvements were needed in control procedures over Pre-K program fees collected at various schools to ensure voided receipts are retained, collections are remitted to the District Finance Office for deposit in a timely manner, and restrictive endorsements are placed on checks and money orders immediately upon receipt.

Finding No. 3:        Cash Collections – Voluntary Employee Benefit Trust (VEBT)

The VEBT is used to administer the District’s employee group health, life, vision, and dental insurance program, as well as the dependent care and medical expense reimbursement programs.  Improvements were needed in control procedures over VEBT collections in the Enrollment Services Office to ensure collections are recorded upon initial receipt and transfers of collections between employees are documented.

Finding No. 4:        Performance‑Pay Plan

The District’s performance‑pay plans for school administrators and instructional personnel included provisions limiting participation and performance pay awarded, contrary to the intent of Florida Statutes.

Finding No. 5:        Self-Insurance Monitoring

Improvements were needed in the District’s procedures for monitoring workers’ compensation, automotive, and general liability insurance claims payments.  The District did not perform a review of the documentation maintained by the third‑party administrator supporting claims payments processed during the 2004-05 fiscal year.  Reviewing claims documentation, on at least a sample basis, is necessary in order to monitor the third‑party administrator’s performance in paying claims for eligible charges.

Finding No. 6:        Fingerprinting and Background Checks

The District did not implement the procedures recommended by the Florida Department of Education during the 2004-05 fiscal year for timely obtaining fingerprints and performing the background screenings required by law for instructional and noninstructional personnel having direct contact with students.

Finding No. 7:        Terminal Leave Payments

Eight employees were paid a total of $28,246.62 in excess of the amounts allowed by law for vacation leave balances upon termination or retirement.  In addition, one employee received two payments for accrued vacation leave, once upon entering the Deferred Retirement Option Program (DROP) and again when exiting DROP, resulting in an overpayment of $25,195.50.  Also, one employee with 11 years of experience with the District was paid for 100 percent of accrued sick leave upon termination, but should have been paid for 50 percent of accrued sick leave, resulting in an overpayment of $2,795.92.

Finding No. 8:        Contracts with Supervisors and School Principals

For eight supervisors and principals selected for audit tests, as of June 30, 2005, the most recent contracts on file for seven of these eight employees were for a one-year period ending June 30, 2002, and for one of the eight employees, the most recent contract on file was for a one-year period ending June 30, 1989.  Section 1012.33(1)(b), Florida Statutes, states that a supervisor or school principal shall receive a written contract for an initial period not to exceed three years, subject to annual review and renewal, and after the first three years, the contract may be renewed for a period not to exceed three years.

Finding No. 9:        Cellular Telephone Expenditures

The District should enhance procedures relating to the monitoring of personal use of District cellular telephones to ensure that payment forms, along with any amounts due, are received on a regular basis.

Finding No. 10:      Capital Assets – Annual Inventories and Disposals

Improvements were needed in controls over tangible personal property to ensure that missing items noted during the District’s annual inventory are investigated and reported to the appropriate law enforcement agency.  Additionally, controls should be enhanced to ensure the annual inventory is taken by someone independent of the property custodian and final disposition of property is approved by the Board.

Finding No. 11:      Annual Facility Safety Inspections

The District should enhance its procedures to provide for timely correction of facility deficiencies noted on the annual comprehensive safety inspection reports.

Finding No. 12:      Rental of District Facilities

The District should enhance its procedures over the rental of District facilities to ensure that rental contracts are executed in accordance with Board policy and all rental activities and fees collected agree with the rental contracts.

Finding No. 13:      Ad Valorem Taxation

District records did not evidence that expenditures of capital outlay millage levy funds  totaling $662,148.12 met the applicable expenditure restrictions of Section 1011.71, Florida Statutes.

Finding No. 14:      Controls Over Food Service Inventories

The District should enhance its procedures to ensure food service inventory records are properly maintained at the various school sites and the central kitchen.  Detailed inventory records provide accountability and control over food service inventories.

The Superintendent's written response to the audit findings is included as part of this report on the Auditor General’s Web site.