Summary

Summary of Report on Financial Statements

The Baker County District School Board prepared its basic financial statements for the fiscal year ended June 30, 2007, 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 internal control and compliance findings that are summarized below.

Finding No. 1:  Financial Reporting

Improvements are needed in District procedures to ensure that contract commitments are properly reported at fiscal year-end.

Finding No. 2:  Time Records

Procedures could be improved to provide adequate supervisory review and approval of employee timesheets. 

Finding No. 3:  Information Technology – Disaster Recovery

While the District’s disaster recovery plan related to its information technology resources provides for consideration of procedures for minimizing damage and restoring capacity, it does not include a specific plan for an alternate-processing site. 

Finding No. 4:  Qualified Zone Academy Bonds

Deficiencies were noted in the District’s participation in a qualified zone academy bond financing arrangement, including the use of proceeds for ineligible purposes, and lack of documentation evidencing compliance with private contribution requirements.

Finding No. 5:  Purchasing Procedures

Certain purchases were made without documentation to demonstrate the required bid process and evidence that the amounts billed to the District conform to the approved bid amounts.  

Finding No. 6:   Budget Administration

Although sufficient resources were available, actual expenditures exceeded the Board-approved amended budget for two functional categories in the General Fund by amounts totaling $396,925.25, and one functional expenditure category in the Special Revenue – Other Fund by $38,021.09 at June 30, 2007, prior to final budget amendments.

Finding No. 7:  Student Fees

Student fee collections from the prekindergarten extended day enrichment program were not remitted to the District Office for deposit in a timely manner. 

Summary of Report on Federal Awards

We audited the District’s Federal awards for compliance with applicable Federal requirements.  The Title I Grants and WIA Youth Activities 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, with the exception of the Title I program, as summarized below. 

Federal Awards Finding No. 1:  Special Tests and Provisions – Highly Qualified Teachers

District records did not evidence that three teachers met the required qualifications to work in Title I schoolwide programs. 

Audit Objectives and Scope

Our audit objectives were to determine whether the Baker 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;

• Established management controls that promote and encourage:  1) compliance with applicable laws, administrative rules, and other guidelines; 2) the economic, effective, and efficient operation of the District; 3) the reliability of records and reports; and 4) the safeguarding of District assets;

• 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, all deficiencies disclosed in our report No. 2007‑111.

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, 2007.  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 response to the audit findings and recommendations is included in the full report.