|Report Title:||Osceola County District School Board - Financial, Operational, and Federal Single Audit|
|Report Period:||FYE 06/30/2007|
Summary of Report on Financial Statements
The Osceola 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: Inventory Controls
Improvements were needed in order to strengthen controls over the Districtís inventories and provide for enhanced accountability and safeguarding of related assets.
Finding No. 2: Investments
Improvements could be made in control procedures to ensure that investments of unspent bond and certificates of participation proceeds are appropriately secured.
Finding No. 3: Terminal Leave Payments
District procedures could be enhanced to ensure that the appropriate terminal leave payments are made to employees.
Finding No. 4: Overtime Controls
Improvements were needed in procedures to demonstrate compliance with the Board policy related to overtime and to control overtime costs.
Finding No. 5: Annual Facility Safety Inspections
Annual safety inspection reports noted numerous deficiencies which remained uncorrected from previous years, such as fire detectors not installed, rooms not accessible to those with disabilities, and other deficiencies.
Finding No. 6: Third-Party Administrators
The contracted provider of the Districtís flexible spending plans did not hold a valid certificate of authority from the Florida Office of Insurance Regulation. Improvements were needed in monitoring claims paid for the flexible spending plans.
Finding No. 7: Security Awareness Training
The District did not develop a written security awareness training program or perform ongoing information technology security awareness training for all who use the Districtís computer system.
Finding No. 8: Formal Security Program
The District did not develop formal written policies and procedures related to the Districtís information technology resources.
Finding No. 9: Network Penetration Testing
Improvements were needed to ensure that penetration and vulnerability testing is performed on a regular basis.
Finding No. 10: Security Administrator Function
The District has not formally established the duties and responsibilities of the security administrator position.
Summary of Report on Federal Awards
We audited the Districtís Federal awards for compliance with applicable Federal requirements. The Child Nutrition Cluster was audited as a major Federal program. The results of our audit indicated that the District materially complied with the requirements that were applicable to the major Federal program tested. However, we did note an internal control and compliance finding that is summarized below.
Federal Awards Finding No. 1: Suspension and Debarment
The District did not have the necessary controls in place to verify that, for certain Federal transactions, vendors were not suspended or debarred.
Audit Objectives and Scope
Our audit objectives were to determine whether the Osceola County District School Board and its officers with administrative and stewardship responsibilities for District operations had:
Presented the Districtís 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 Districtís major Federal programs; and
Corrected, or are in the process of correcting, all deficiencies disclosed in the previous audit reports.
The scope of this audit included an examination of the Districtís 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.
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.