Summary
| Report Number: | 2010-056 |
|---|---|
| Report Title: | Madison County District School Board - Financial, Operational, and Federal Single Audit |
| Report Period: | FYE 06/30/2009 |
| Release Date: | 12/02/2009 |
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 issued by the Comptroller General of the United States; however, we noted certain additional matters as summarized below.
Significant Deficiency:
Finding No.
1: Improvements are needed in District procedures to ensure
that financial statement note disclosures and information on the
Schedule of Expenditures of Federal Awards are properly reported at fiscal year-end.
Additional Matters:
Finding No. 2: Controls over monitoring the budget process could be enhanced.
Finding No. 3: The District lacked written policies and procedures for certain information technology functions.
Finding No. 4: Certain security controls in the areas of management of access privileges and user authentication 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, Child Nutrition Cluster, and Hazard Mitigation 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 a compliance finding as summarized below.
Federal Awards
Finding No. 1: Improvements should be made in procedures to include
required contractual provisions for expenditures
funded with Federal funds.
Audit Objectives and Scope
Our audit objectives were to determine whether the Madison 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. 2009-056
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, 2009. 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 A.