Summary

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.

Significant deficiency

Finding No. 1:        The District incurred expenditures, totaling approximately $3.7 million, from 2005-06 fiscal year capital outlay millage proceeds for computer software and related items, which were not specifically listed in Section 1011.71(5), Florida Statutes (2005), as allowable uses of such proceeds. 

Summary of Report on Federal Awards

We audited the District’s 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.

Audit Objectives and Scope

Our audit objectives were to determine whether the Lee 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;

• 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 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, 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.  The results of our operational audit of the District are included in our report No. 2009-048.

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 - A.