Summary

Summary of Report on Financial Statements

The Bradford County District School Board prepared its basic financial statements for the fiscal year ended June 30, 2007, in accordance with prescribed financial reporting standards. The Believer’s School of Learning, Inc., Charter School was not included within the scope of our audit.

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 the accuracy and completeness of the financial statements.

Finding No. 2:  Cash Collections

Weaknesses in internal control were noted over cash collections at the District office, including an inadequate segregation of duties and ineffective use of and accountability for prenumbered receipts.

Finding No. 3:  Capital Assets – Subsidiary Records

The District did not maintain adequate detailed subsidiary records for its buildings and fixed equipment and improvements other than buildings categories, and subsidiary property records were not properly updated and reconciled to the corresponding control accounts.

Finding No. 4:  Time Records

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

Finding No. 5:  Fingerprinting and Background Check Requirements

The District could not provide documentation that it had obtained the required fingerprints and background checks for five of ten independent contractors tested.

Finding No. 6:  Cellular Phones

The District had not implemented policies and procedures to monitor the business use of cell phones. In addition, the District had not included the value of these services in the income reported on the employees’ W-2 forms.

Finding No. 7:  High School Diplomas

Improvements are needed to enhance controls over high school diplomas.

Finding No. 8:  Information Technology – Disaster Recovery

The District’s disaster recovery plan could be enhanced.

Summary of Report on Federal Awards

We audited the District’s Federal awards for compliance with applicable Federal requirements.  The Title I and Special Education 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.  However, we did note internal control and compliance findings that are summarized below.

Federal Awards Finding No. 1:  Equipment and Real Property Management

The District had not implemented controls to ensure the accountability and safeguarding of the District’s tangible personal property which impact the major Federal programs.

Federal Awards Finding No. 2:  Contract Provisions

Payments, totaling $23,587, were made to one vendor to provide professional services for the Special Education program without a written contract containing the Federally required contract provisions. 

Federal Awards Finding No. 3:  Time and Effort Documentation

Instances were noted in which employees funded by the Special Education program did not prepare required time and effort documentation.

Audit Objectives and Scope

Our audit objectives were to determine whether the Bradford 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. 2007‑134.

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.