The state Auditor’s Office has issued two findings in its audit of the Oakville School Distric for accounting and accountability issues.
The finding states the district does not have controls in place to ensure its financial transactions are accurately recorded, and the district lacks a process for ensuring it is properly receipting and coding its transactions in the electronic accounting records in accordance with the accounting manual for public school districts in the state of Washington.
As a result, the Auditor’s Office was unable to agree the financial statement balances to the general ledger. Total amounts reported did not agree with the amounts included in the totals reported.
The finding also cited a failure to prepare notes on the financial statements, which the finding calls “an integral part of the financial statements” as it works to “communicate information necessary for a fair presentation of financial position and results of operations not included in the statements.”
The audit found the above accounting issues result from a lack of controls in place to ensure financial transactions are accurately recorded.
“The district continues to have internal control weaknesses over its financial operations,” the audit’s finding stated. The filing also notes accounting issues for internal controls, policies and procedures related to cash receipting and ASB (Associated Student Body) cash receipting and general disbursements.
The district, in compliance with the accounting manual for public school districts in the State of Washington, is required to maintain a system of internal controls throughout the district in an effort to ensure funds are adequately safeguarded and recorded properly in accounting records.
The finding states the district is operating “without a policy that governs cash receipting procedures.” Resulting from a lack of policy, the finding reports that the district did not make timely deposits for seven of 16 deposits tested. Deposits that were not timely deposited totaled $11,891.
The finding reports that the district did not make timely deposits for seven of 16 deposits tested. Deposits that were not timely deposited totaled $11,891.
The finding also noted that in review of general disbursements, it was found that the district did not maintain support for all disbursements. These include $10,436 in credit card disbursements and $35,335 in general disbursements.
Additionally, the district failed to conduct a secondary review of credit card purchase receipts maintained to ensure purchases were allowable and within the realm of reasonable need.
“The district does not have adequate oversight of daily transactions to ensure accurate reporting of financial activity in the financial statements,” the finding states.
The auditor’s recommendation is for the district to train staff on financial accounting and reporting, to establish a review process of financial statements by a person knowledgeable of the accounting manual and to establish internal control procedures and written policies on the expectations and responsibilities related to the authorization, documentation and review of journal entries.
“The Oakville School District is accountable for spending taxpayer money wisely,” Superintendent Rich Staley said in an email. “As the new superintendent, I’m committed to working with our school board and staff to establish an effective system of internal control.”
