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 operation 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 Governmental Auditing Standards; however, we noted certain additional matters as summarized below.

Significant Deficiency

Finding No. 1:         Improvements are needed in procedures to properly report certain account balances on the financial statements.

Additional Matters

Finding No. 2:        Control procedures over Extended Day Enrichment Program fee collections could be strengthened.

Finding No. 3:        The District used capital outlay millage levy proceeds, totaling $160,539.56, for the purchase of computer software items which were not specifically provided for in Section 1011.71, Florida Statutes.

Finding No. 4:        The District did not conduct a review and evaluation of the reasons for 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:        Improvements are needed in controls over the reporting of instructional contact hours for adult general education to the Florida Department of Education.

Finding No. 6:        Total Educational Resource Management System security activity, such as modifications to user access privileges, was not systematically logged by the District, limiting the ability to monitor the appropriateness of security administration actions.

Finding No. 7:        The separation of duties within the Technology and Information Services area needed improvement with regard to production library access privileges.

Finding No. 8:        The District’s network security controls needed improvement.

Finding No. 9:        District controls over the removal of access privileges of former employees needed improvement.

Finding No. 10:       The District’s storage of back-up tapes needed improvement. 

Summary of Report on Federal Awards

We audited the District’s Federal awards for compliance with applicable Federal requirements.  The Special Education 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 a compliance and internal control finding that is summarized below. 

Federal Awards Finding No. 1:          Required documentation to support salary and benefit charges for two employees in the Special Education program was not maintained, contrary to Federal regulations.  Also, the District could strengthen monitoring procedures over purchased services.  

Audit Objectives and Scope

Our audit objectives were to determine whether the Leon 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 program; and

• Taken corrective action for 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, 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 in the report as Exhibit - O.