Summary
Summary
| Report Number: | 2009-099 |
| Report Title: | Baker County District School Board - Financial, Operational, and Federal Single Audit |
| Report Period: | FYE 06/30/2008 |
| Release Date: | 01/27/2009 |
Summary of Report on Financial Statements
Our audit disclosed that the District’s basic financial statements were presented fairly, in all material respects, in accordance with prescribed financial reporting standards.
Summary of Report on Internal Control and Compliance
We noted a certain matter involving the District’s internal control over financial reporting and its operations that we consider to be a significant deficiency as summarized below. However, this significant deficiency is not considered to be a material weakness.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards; however, we noted certain additional matters as summarized below.
Significant Deficiency
Finding No. 1: Improvements were needed in District procedures to ensure that certain account blances are properly reported on the financial statements.
Additional Matters
Finding No. 2: The District purchased a handicap-equipped school bus using qualified zone academy bond financing, although the bus is used predominately to benefit students not attending qualified zone academy schools.
Finding No. 3: Improvements were needed in controls over the reporting of instructional contact hours for adult general education to the Florida Department of Education.
Finding No. 4: The District did not conduct a review and evaluation of the collection of social security numbers (SSNs), provide a written statement to individuals stating the purpose for collection of the numbers, or certify compliance with the new SSN requirements to the Legislature, contrary to Section 119.071(5)(a), Florida Statutes.
Finding No. 5: The District lacked written policies and procedures for certain information technology (IT) functions.
Finding No. 6: District staff had not removed the access privileges of certain former employees in a timely manner.
Finding No. 7: The District did not have a formal program change methodology and did not restrict programmers from accessing or updating production data.
Finding No. 8: The District’s data owners had not classified data according to sensitivity or level of significance. Also, the District had not required data owners’ authorization of user access privileges or maintained documentation of user access authorization.
Finding No. 9: The District had not adequately logged and monitored data and IT resources.
Finding No. 10: Certain security controls related to user authentication needed improvement.
Summary of Report on Federal Awards
We audited the District’s Federal awards for compliance with applicable Federal requirements. The Child Nutrition Cluster, Special Education Cluster, and Title I 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 compliance findings as summarized below.
Federal Awards Finding No. 1: The District did not obtain the required monthly personnel activity reports or equivalent documentation for employees paid partially from Special Education programs.
Federal Awards Finding No. 2: Beverages of low nutritional value were sold at the Baker County High School during lunch hours, contrary to Federal regulations, State rules, and Board policy.
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 internal controls that promote and encourage: 1) compliance with applicable laws, rules, regulations, contracts, and grant agreements; 2) the economic 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 laws, rules, regulations, contracts, and grant agreements that are material to the financial statements, and those applicable to the District’s major Federal programs; and
Taken corrective actions for findings included in our report No. 2008-073.
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, 2008. We obtained an understanding of the District’s environment, including its internal control and assessed the risk of material misstatement 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, 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.
Management's response is included as Exhibit - M.