Summary

Summary of Report on Financial Statements

The Pasco 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:  Inventories – Separation of Duties

Improvements were needed in controls over maintenance, warehouse, and telecommunications department inventories by adequately separating asset custody and record keeping responsibilities, and limiting access to inventory storage areas. 

Finding No. 2:  Construction Projects

The District could enhance procedures over construction projects to ensure payments to construction management entities are properly monitored and contracts contain penalty clauses.

Finding No. 3:  Board Meetings and Minutes

District procedures did not ensure that minutes for 16 workshop meetings were recorded and subsequently reviewed and approved by the Board.  Also, although minutes were recorded for four appeal hearings and an informal meeting, these minutes were not approved by the Board.

Finding No. 4:  Unclaimed Property

Improvements were needed to provide for the reporting and remittance of unclaimed property to the Florida Department of Financial Services, as required by law.

Finding No. 5:  Strategic Planning

The District’s planning and budgeting procedures could be improved by establishing a strategic plan to include a prioritization of specific long-term and short-term (annual) financial and budgetary goals.

Finding No. 6:  Fingerprinting

The District did not have adequate procedures for timely obtaining fingerprints and background screenings for instructional and noninstructional staff that have direct contact with students.

Finding No. 7:  Capital Outlay - Architect Insurance

District procedures did not ensure that its architectural firms were adequately and properly insured.

Finding No. 8:  Educational Facilities - Safety Procedures

District records did not evidence that floor plans had been provided to area law enforcement agencies and fire departments, contrary to Section 1013.13, Florida Statutes.

Finding No. 9:  Tangible Personal Property

Improvements in controls over tangible personal property could be made to ensure that the appropriate law enforcement agency is timely notified for items missing during the physical inventory procedures, property records are promptly adjusted to reflect missing property, and that property items are properly marked as property of the District.

Finding No. 10:  Charter School Monitoring

Enhancements were needed in the District’s procedures to ensure that the charter schools are in compliance with the contract provisions regarding insurance coverage.

Finding No. 11:  Information Technology – Back-up Tape Procedures

Written policies and procedures have not been established outlining daily procedures for security over back-up tapes, such as steps to follow in the absence of the individual responsible for the tapes and off‑site storage procedures. 

Finding No. 12:  Information Technology – Disaster Recovery

The District did not have procedures in its disaster recovery plan to address minimizing the disruption of operations in the event of a disaster and make the plan available to key employees.  Additionally, the District did not conduct a disaster recovery test to ensure its ability to produce the output needed to sustain selected operations during a prolonged data center outage.

Finding No. 13:  Information Technology – Program Change Controls

Procedural improvements could be made to ensure that program change activities are properly authorized and implemented.

Summary of Report on Federal Awards

We audited the District’s Federal awards for compliance with applicable Federal requirements.  Food Donation, the Child Nutrition Cluster, and the Special Education Cluster 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 a compliance finding that is summarized below.

Federal Finding No. 1:  Cash Management

Contrary to Federal regulations, the District did not remit interest earnings, totaling $43,468.32, to the Florida Department of Education.

Audit Objectives and Scope

Our audit objectives were to determine whether the Pasco 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 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, 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.