Summary

This operational audit for the period July 1, 2004, through June 30, 2005, and selected transactions through April 28, 2006, disclosed the following:

Finding No. 1:         Annual Facility Safety Inspections

The District did not correct safety deficiencies disclosed by annual facility inspections in a timely manner.  Our review of annual facility inspection reports indicated many instances in which previously cited safety deficiencies remained unresolved.

Finding No. 2:        Inspections of Relocatables

The District did not provide for the required annual inspections of ten relocatable buildings used for classroom purposes or student occupancy during the 2004-05 fiscal year.

Finding No. 3:        Floor Plans

Floor plans of educational facilities were not always timely provided to area law enforcement and fire departments.

Finding No. 4:        Land Acquisition

The District purchased land that required rezoning without obtaining local government assurance that the land would be rezoned.

Finding No. 5:        Lobbying

The Board conducted business with a sales broker who had previously served as a Board member within a two-year period of time, contrary to Section 112.313(14), Florida Statutes.

 Finding No. 6:        Professional Insurance Requirements

The District had not adopted standard liability insurance requirements for architects under contract with the District.

Finding No. 7:        Construction Management Services – Contract Administration

The District’s monitoring of its construction management entity (CME) for the Leesburg High School project did not evidence an adequate preaudit of the CME’s billings or supporting invoices.

Finding No. 8:        Construction Management Services – Selection of Subcontractors

Improvements were needed in the District’s monitoring of the selection of subcontractors by the CME.

Finding No. 9:        Tangible Personal Property

Improvements were needed in the District’s controls over its annual physical inventory of tangible personal property.

Finding No. 10:      Payroll Processing

The District did not have written procedures providing a consistent methodology for documenting employee time worked, leave used, and supervisory review and approval. 

Finding No. 11:      Sick  Leave Payments

The District should implement procedures to ensure that terminal leave pay for accumulated sick leave is properly calculated and limited to amounts allowed by District policy.  Audit tests disclosed that the District overpaid net amounts totaling $6,781.

Finding No. 12:      Physical Security of Payroll Records

Deficiencies were noted in security control features relating to personnel and payroll records.

Finding No. 13:      Property Insurance

The District’s schedule of values for property casualty insurance coverage was not accurate and complete for the 2004-05 and 2005-06 plan years.

Finding No. 14:      Monitoring of Charter Schools

The District did not have a procedure to monitor required insurance coverage for the District’s charter schools.

Finding No. 15:      Banking Services Agreement

The District did not routinely solicit proposals and prepare formal analyses to compare the provisions of their banking agreement (minimum required balances, interest earned, cost of services provided, etc.) with other available financial institutions to ensure the reasonableness of the fees charged by the financial institution.  Consequently, the District could not be assured that it obtained customary services at the lowest and best price.

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