001[Music] but I can't tell who it is could you unmute let me know [Music] for okay I think we'll get started I know Terry's having a little bit of technical difficulty but I think all the members are here except Mr folz I've not seen him um we'll go ahead and get started so the first thing I would like to do is we have some new members and I would like for um Russell and then Ryan to introduce them El Place hi I'm uh Rusty mton with South State Bank I'm a uh senior vice president and Commercial lender and I've been with South State for about 12 years now great to have you thank you thank you hey I'm H Ryan Williamson I'm the director of operations and finance here at the Keller Williams Brokerage in
002Winter Haven thanks Ryan welcome okay um if everybody else would just say hello um Terry can you hear me I can okay go ahead and introduce yourself I'm Terry Loretta uh chief administrative officer for Florida Children's Museum thank you Mr reer good morning Chris reer with the city of aubo thank you Mr tropia good morning sou tropia I'm at Bunning trip in engley and I'm a CPA with them thank you obviously I'm Carol Matthews the senior internal auditor for the internal audit Services Department with the school board and we have Luke hi good morning Luke witty assistant director of internal audit with P County School Board and deina hi good morning deina Roo internal auditor then we have the accounting staff here um Al morning good morning I'm Aline Nunes I'm the senior director of
003accounting and Earl is Earl still on Earl oh there he is Earl you want to say hello maybe not Earl is our assistant director in accounting um that manages our internal funds and Food Service accounting thank you I don't think Heather's with us today okay okay so the next order of business is to accept the minutes of our last meeting which was August 6 of 2024 do I have a motion one of my members that was here before I'll make a motion thank you a second I'll second thank you all those in favor say I I I any opposed okay we accept the minutes and we'll just move into our presentation by Jennifer Christenson with car Rigs and Ingram uh she can introduce yourself herself and tell you a little bit about the audit that
004she did go ahead Jennifer thank you Carol hi my name is Jennifer Christensen I'm an audit partner with car Rigs and Ingram and um we perform the audits of the internal funds and so I do have a a presentation I was going to share and so today I would just like to go over a brief overview of the financial statements and and then describe a little bit about what our audit process is and the types of testing that we perform during the audit and then I'll go over um our recommendations for improvements at the school level and then at the districtwide level so the internal funds um would be one fund out that the school district has so we're just auditing One Fund out of the entire school district and this is the fund where
005um the school act the Student Activity fund so this is where the field trip money the prom ticket sales the football ticket sales the fundraisers they all flow through um this fund and so the this is all money that's raised by the students and spent on the students and so you could see comparing 2024 to 2023 our total assets we were at about $ 13.5 million and this is for all the schools combined and um and then as far as liabilities they were pretty comparable to the year before and they're going to be a much smaller number because as you can imagine at June 30th we're during the summer in between school year so there's not quite as much activity going on so all the bills from the previous school year have all been paid
006and so um our liabilities which is going to be mostly our accounts payable it's going to be um a fairly a low number compared to the total assets um total net position that's going to be like um similar to equity in in the organization and that was at about 13.4 million that's going to be the difference between your total assets and total liabilities and then we have um on the um revenue and expense side we have total additions for the year of about 14 million and deductions of about 13 million so you could see it's going to grow um as expected year after year as um populations grow and as um things get more expensive we're going to expect that the cost of um of doing any kind of business is going to increase and
007so you could see um from year to year it did increase um one thing that's a little different with the internal funds is that the purpose of those funds is to raise them and spend them in the same year so um so as you could see the um amount that was spent was about 13 million and closer to 14 million in addition some of that's due to some timing differences but we do encourage the um the district and the schools to make sure that they're um monitoring their balances and if they have excess funds making sure that they're spending them in that same year so um moving on to the the next slide so the audit of the internal funds is something that's required under Florida Statutes to be audited each year and so we
008um present an audit report so our audit report was unmodified this year year which means it's a clean audit opinion and um as far as audit adjustments we had two of them this year that and they both um related to recording accounts receivable um at the career center it was just adjusting um some of the accounts receivable we have and then um for the district to let us know um if any of those receivables need to be allowed for because at a certain point if um if tuition if there amounts owed for tuition and it's for the previous School year you know the likelihood of it being collected is going to decrease and so the the allowance would be an amount that the district would let us know you know what they feel that amount
009is and then we record it as an adjustment we had one what we that are immaterial to the financial statements but we still have to track them just to determine that the cumulative effect of all of them is is IMM material to the financial statements and this year we just had the one and it was actually just recording the carry forward effect of the prior year um past adjustment and so that's going to go away and so we we won't have that adjustment in um in the future years and then um next as far as sensitive footnotes there are certain things were required to communicate with those charge of governs and one would be if there were any sensitive footnotes and there really aren't any um what I would call sensitive footnotes for internal funds
010but um but the one footnote we did have was we we have to disclose in Investments if there's any concentration if um a large percentage of Investments are held in one investment or one type of investment we would have to disclose that as a credit risk and they did not have any such concentrations this year so there was nothing like that that needed to be disclosed a couple other items that we would want to communicate with you if we had any disagreements with Management on accounting standards and how to apply them and um whether to apply them or not and we didn't have any such uh disagreements any significant difficulties encountered in the audit and and we didn't have any any of those um if we there if the school district had any consultation with
011other accountants we would need to be made aware of it so that we would know what was discussed and and just what conclusions they came up with but we're not aware of any type of consultations like that that were held and then um lastly fraud or legal acts if we came across any material fraud or illegal acts we would um definitely communicate it to management but we would also be required to communicate it to the school board and um we did not come across any any such items like that when we talk about significant difficulties encountered in the audit um just to kind of give you an idea we work with all these different um groups of people departments schools and so it is um definitely a an effort to gather all the information we
012have to work with the schools and then we also work with ai's team and do a great job of pulling all the information we ask for um hundreds and hundreds of invoices deposits and so um they're all um do a great job of pulling that information pulling it timely so we did not have any difficulties due to you know how well all of these groups of different groups of people um work together and work with us so I always like to kind of acknowledge that during my presentations so the type of um testing that we do for our audits we um we audit the the numbers right we audit the financial statements we um we um go through and we have to um perform different tests where we look at um third party evidence to
013to verify the amounts of those accounts but the bulk of our testing is done here where we're um doing compliance testing and so um some of the different areas we look at are listed up here I'm not going to read them out but you can look at them and um and what we're doing is we're testing to make sure that the school is adhering to um School District rules the the um bookkeeper the manual that they have for internal accounts we want to make sure that they're adhering to Schoolboard rules and then the State of Florida um Department of Education has a red book where they have um rules and they have a specific chapter just for internal funds and so we're testing these areas to make sure that they're adhering to all of these
014rules and as you can imagine we can we we do perform testing at 100% of schools and departments that had any kind of activity during the year for um in their internal fund but we are picking a sample and so um we're not looking at the entire population we're picking a sample of items and um this year I think we had we had 154 schools and departments that had some kind of activity in internal funds so um so we are looking at a sample so what that means is if we come across let's say for um deposits and we find that a school had a deposit and they didn't make it timely or the teacher collected money but didn't turn it into the front office timely then for every instance um that that happens we're
015going to we're going to put that in our report we're going to include that as an exception in our report so um so we call those School level findings but they don't rise up to the level of um a finding like what you may be used to hearing about find audit findings where there may be U material weaknesses or significant deficiencies in internal controls these are more um recommendations but we feel like anytime because we're only looking at a sample anytime we come across a rule that's not being followed we want to make sure so now kind of going into the data of the average findings so that's again every time we came across something and just to if we have a school that had three deposits that weren't um that weren't made Timely then
016that would count as three findings for that school so just to kind of put in perspective so here's our average findings per per school or or Department per internal fund and so um this year we were um we did increase but you could see the trend is as expected because um when covid happened the amount of activity went down drastically in um 2020 and so and then after you could see as the activity started to go back up the number of findings went up and that's that's um like I said as expected because the less activity then the less chance that there's a rule that's not being followed so um so it has been rising the last few years as the activity has been going back to the preco um levels but um but if
017I go back and look at 2019 2018 2017 the um average findings per School were about between one and 1.2 around that area so in 24 the number was a little higher and we're going to talk about that in a minute of um you know we really had one finding that I think um that we had at a at a large number of schools that that kind of um that kind of um skewed these numbers or or increased them um for the average so we'll we'll kind of go into that next um here you could just see the number of findings um her school so um together schools that had zero or one findings we're at about 72% last year we were at about 74% so it was a little bit of a change but
018um but not much the other areas they they were all very consistent with the year before I think um the biggest change was between zero and one findings last year we had 52% of our schools had zero findings so that went to 43 and then this year um the number of schools that had one finding had had increased from 22% to 29% so that's really um where we see the the biggest difference but as shown in the pie chart here you could see a very large percentage of the pie is going to be zero findings or or one um next are a list of we just like to list the most common findings we had for the year and um and you could see at the top this is the one that I was mentioning
019before we had 68 um deficit account balances for the year and what that means is a school had one specific account that they overspent the money so it may be the fifth grade account and they just um maybe the cost of a field trip costs more than what they collected for the field trip so they ended up with a negative balance at the end of the year the school as a whole had still had a positive balance so they had positive cash you know assigned to their to their school accounts but it's just within their accounts they had one that um that was negative that was overspent and um and you could see it went from 28 in 2023 to 68 um instances so this isn't 68 schools but it's 68 different accounts so one
020school may have had three or four different accounts that that were overspent but um but that number did jump quite a bit and that is what I think skewed the or I say skewed but I mean it is what made the average findings per school um jump up from from the year before and from what we would see back in the preo times what the average was so um we'll talk about that more in a second and then um the others are you know fairly typical of what I see at other um school districts there's lots of forms that are um completed fundraiser forms and then after a fundraiser is done there's a financial report that needs to be completed and um and that's something that the club sponsor or the coach has to um
021complete so we do see that there are times where they're not completed or they're not completed timely because they are due 10 days after the event is over and um and so that number did did increase the um the next one was something a little different we looked at this year um looking at dispersements and um it shows there's 27 dispersements that weren't approved but um there is a little bit of um there's this a little bit of a tricky um finding because a lot of times or sometimes we we saw where we just weren't able to tell because the vendor may have um may give a quote on a certain day and then when they actually do the um order they'll put the date of the quote on there so it looks like maybe
022it wasn't approved ahead of time but it's just because of the way the vendor system works but we have no way of knowing which which um vendors you know way the way that each vendor system works and so so I have that on there but something that I think we're going to try to test in a different way next year to make sure that we're really getting at um you know whether these dispersements are all being approved ahead of time being able to to you know see that so so um again it was something a little different we looked at so that's why last year it was Na and then the others you can look at um we had some receipts in the prior year that um that weren't properly accounted for they're supposed to
023be keeping track of every receipt that they have that's used or not used and um and it was just trying to reconcile the ones that were used to the ones that they said they had on hand the same with the next one the official receipts and so um those findings went down this year and so I do kind of like to show um and and I have a graph to show um for the last three years but even though there are some findings where the number of instances went up we have some where the number went down too so I think it's important to show that too and then funds collected not turn in the daily office that was what I mentioned if a teacher collects um field trip collections from the students and then
024they have to turn it into the front office um they really need to turn that in Daily and that's a safety issue um you know for the teacher and the and the student safety and so we had a couple of instances where where they didn't um turn it in that daily um here's the graph I'm show I wanted to show and I know it's small but it's more just a visual for you to be able to see the the Orange is the current year and then the light blue and then the navy blue is you know the two years previous but you could see the deficit account balance I couldn't do this to scale or else everything would have shrunk down because we we had such a large number so this should be 68 for
025the current year you could see there's a lot more findings or this finding occurred a lot more than in the previous years but then if you go down you'll see some of those where um the number of findings went down some of this um the the change in fi the number of findings from year to year sometimes it is due to um a change in position right you may have a new principal at the school you may have a new Financial secretary and so they're um you know they're they're learning or they may not understand all the rules sometimes it's um just the luck of the draw I mean we do pick a sample and so it may be some of the samples we picked um it could go either way maybe um the school
026had a lot of schools will tell me this well we did it right the whole year and we did one that maybe was wrong and that's the one you happen to pick and and maybe that's that's true but it could be the opposite where maybe they W weren't following the rule for the majority of the year and we happen to pick the one where they did follow the rule so there is a little bit of that sampling risk in there when we look at the findings but we do note which findings are repeats from the year before and every school when we're done with our testing we have a preliminary report of our findings which we send out to every school and we ask every school to set up an exit conference with us where
027um we go through on a on a zoom call we go through the findings and at that point if there's something um maybe there's some support that they didn't provide us when we initially asked for it but when we go over the report they they'll say well no we we do have that we have a copy of that invoice then we'll give them the opportunity to send it to us and we'll look at it and we'll go through and we'll update that text test and we'll update our report if they have additional information but during that exit conference we also require them to give us responses for each for each finding that they have and the responses really are are supposed to cover um you know why did this happen um what's what are you
028going to do different in the future to make sure it doesn't happen again and who's going to be responsible for doing that so it's a sort of an audit audit plan for um what you're going to do in in the future to um to make sure that finding doesn't happen and then if a finding is repeated we do note in our report it's repeated and that way it gives um internal audit Department um kind of a a guide to look at if there's any schools that look like they could be of concern if they have a large number of findings maybe a large number of repeat findings then that gives them the the opportunity to maybe look into that school um a little more and and talk to them to see if there's any issues
029that they need to need to investigate further um now as far as districtwide recommendations we did not have any material weaknesses um in internal controls um we did give a a deficiency um so when we look at internal control issues the very say most severe um issue would be a material weakness in internal control where um there is a um material misstatement in the financial statements or um compliance that's not being followed and there's no controls in place to detect it or to be able to prevent that that um lack of of um you know whether it's a m statement the financial statements or the non-compliance and so we didn't have any at that highest level the next level significant deficiencies and so those are the ones that we are required to report to those
030charge of governance and we didn't have anything there that needed to be reported so then the next one is just we're just saying this is a deficiency this is just something you probably you look at the number of because we had 68 different accounts that had a deficit balance so we did recommend that the district has already implemented a plan the um accounting department um they are notifying schools of their balances um and this started back in October I believe they started notifying the the um districts if they had any of those negative balances because in some cases the schools told us well it was either a timing issue where they overspent but they're expecting the revenue to come in you know after June 30th or um they just said they didn't realize that they
031had a deficit balance so inter so the internal accounts they're they are notifying the schools if there's any deficits every month and that way it gives them plenty of time to make sure they're resolving it and if a school has a repeat where you know each month they're overspending their account then that gives the school a chance to the principal a chance to to talk with that club sponsor that teacher that coach and make sure they understand that they should be monitoring their accounts before they they spend the money so they've already implemented that planned and then um on the it side we had just um recommended that they look at the um Disaster Recovery failover test that it's being done annually and they did respond and said that they have a new site set
032um for this next year and that their plan is to make sure that this test is completed in um the current year here so here is my contact information if anybody has any questions or um please feel free and I'm going to stop sharing in a second if there's any questions on my presentation or if please feel free to to ask or you can reach out to me later at any time one point I wanted to make Jennifer was especially for the benefit of maybe some our new members is that collecting the funds at the school level is a very manual process those pre-numbered receipts are all manual and they're tracked like you said through our accounting department so if they go you know if they lose a receipt or um you know teacher doesn't
033know you got to hang on to it and throws it away that accounts for some of those findings as far as the missing receipts and I assume that that's you know still probably in all districts they still use the same manual process is that right that is right I mean one thing we're seeing is more and more districts are going towards um letting the parents pay online for and and that's been um that's been an option for you know the past few years and especially covid kind of um forced it even more but I'm starting to see more more districts where they're requiring that that's the only way to pay um and that there there's some you know pros and cons to that there's some questions to that do all of your parents have the
034ability to pay online and some districts think that yes and some think no that they may say well there there are definitely options for them um some will just advertise that that's the only way to pay but if a parent were to come to the school and you know to the principal and say I I don't have that ability I don't have you know they don't have a a checking or the bank account or they don't have a credit card then the school will then um you know find an alternative method for them but but um different districts have different views on how much to push the the online um but that does take the money out of the classroom um and it it not only is it that safety concern but then it can
035be automated also so it's not the the time it takes for a teacher to fill out a receipt bring it up to the front office and so that is something we're starting to see these types of findings red eded down and and um even get eliminated as more and more schools are using the online option okay thank you I have I have a question Carol sure go ahead what what happens there's no more money coming in for that field trip or whatever does the school just another account absorbs that negative and it's an expense written on okay well it's like yeah their total like Jennifer had mentioned the school's total balance is is positive it's just within the certain accounts that it may be negative but they have to write a letter to the superintendent
036and explain why that happened and how they plan to get that account back in the back out of the red so they may have to do additional fundraisers or what have you to bring that account back in the black thank you and there are some restrictions that because if if money is raised for second grade you can't just move that to the third grade account so like Carol said the first option is they need to try to raise additional funds themselves and within that one account so um there are some accounts where you can you know where you have some flexibility but they don't have the option to just pick like move money from one of the other restricted accounts and and move it over so they have to usually fund raise right and if
037if I can comment to a few of the of the items um the online payments is something that we in accounting are in full support of and we've been trying to look around at different um software options and platforms right now we're at a standstill because that obviously requires the support of it and um with some other major projects that it has going on the timing seems to be maybe middle to ending of 2026 before we can fully jump into that and and Implement such a such a software um but it would help with some of those deficit balances because it would eliminate um The Returned items and we we do see quite a lot of returned items on the internal fund side um since everything the majority is flowing through um checks that are
038coming in um regarding the finding of the deficit Balan is increasing that is something we were um expecting this year um Earl and his team are doing um more reviews up front before requisitions are put through and purchases are are made to make sure that the correct account is being used up front rather than catching it at the back end and having to move those expenses out two two areas of challenges that we have that we're still working on one is a lot of our internal funds expenses go through the the procurement card card or the PE card process and so the timing that it takes between when those are reviewed and approved through the banking platform and then record it internally into the Erp system can present a challenge where um you know principles
039or schools can can think they have more funding available than they actually do um it's something that we are always on the back end of um working with the schools to make sure they they code and and upload receipts timely up to um and including having to um deactivate PE cards if if a school Falls very behind on their um processing on their end um but it's always one that that can present a challenge to for them to know what their available budget is and that's something that's a message that we get out to them all the time if you don't do your side of the PE card on time recognize that your balance in sap is going to be inaccurate until those post things um happen the other one um that recently came up
040is um the posting of field trips internally so um any field trips that use District transportation we then have to journal and code those expenses back to the internal fund from the transportation department and we've worked with them to make sure that we're getting the data we need from them more timely so that then we can post those on time whereby the school would have a better reflection of what their available budget is and I I don't know if Earl wants to add anything but um I'll try it again can you hear me this time okay so so yes uh we did start reaching out to schools beginning in October all principes principal secretaries Finance secretaries are being notified monthly of their overspend accounts but the biggest hold up is we don't know what that
041balance is and if they're overspent if we have outstanding pecard balances or the field trips haven't been posted and so for example earlier this year we went 5 months without field trips getting posted transportation department wasn't giving us the field trip costs for the first five months of the school year and so as you can imagine any school that's missing five months worth of field trips has no idea what account balances they have in their balances and schools unfortunately try to spend every penny they have to to benefit the students and improve their educational EXP experience and that can lead to them spending money they think they have only to find out they don't when those peard charges and transportation charges show up at the last moment so for some perspective um when I sent
042the reports out at the beginning of March for our balances through the end of February we were at 168 overspend accounts and it is higher throughout the year because there are a lot of year end things graduations graduation field trips to Orlando grad bash a lot of senior proms things of that nature where they're in the process of collecting money for those things but they do have to encumber or Reser make reservations for those activities and so I had a lot of push back from some of the schools hey we need to do this and I says I understand I'm just letting you know you need to collect enough money to pay for it and plan that you end with a positive balance can't sell a prom ticket for $10 if it cost $15 per
043per kid to pay for it so so things of that nature I also started reaching out to the regional superintendent in addition to the principal starting this month and I plan to do that again monthly through the rest of the school year for just to get any encouragement I can to get to the schools as much time as possible to address issues but like everyone said like Carol said like Jennifer said we're very restricted with what we can do with internal accounts because we raise the money for a purpose and then we pay for that purpose and so if we didn't collect the money for it then we just don't have the money for it so they're left with the option of fundraising or soliciting donations and so that's the purpose for us to get
044this out there ahead of them so they can have a time to plan fundraisers because I like I keep telling the principles I promise you you're going to have a very difficult time to do a fundraiser on May 25th when the students are out of school on the 27th it's just not going to happen they're not there and the activities have already happened so the time is now really for them to address that because by time we get to June 30th it's just too late thank you Earl is there any other questions for Jennifer okay well thank you Jennifer for your presentation thank you I appreciate everybody's time this morning have a great day thank you next we have mark aroyo from the auditor General's office and they did the districtwide audit for the 2324
045school year all right good morning everyone I'm Mark Royo I'm the audit supervisor of the Lakeland section of the auditor General's office U we conducted your financial audit for the school year our 23 24 fiscal year uh in accordance with Section 11.45 Florida statute as P County District school board's independent external auditor we were engaged to conduct the financial and federal single audit for the fiscal year ending June 30 2024 management is responsible for the preparation and the fair presentation of the financial statements in accordance with accounting principles generally accepted United States of America and for the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from Material misstatement whether due to fraud or error our audit objectives were to obtain reasonable Assurance about
046whether the financial statements as a whole were free from Material misstatements whether due to fraud or error and to issue an Auditors report that included our opinions our audit objectives were also to obtain reasonable Assurance about whether material non compliance with applicable federal wars requirements occurred whether due to fraud or error and to an Express an opinion on the district's compliance based on our audit in doing so we exercise professional professional judgment and maintain professional skepticism throughout the audit identified and assess the risk of material misstatement of the financial statements and not material non-compliance with Federal Ward requirements due to fraud or error and designed and performed audit procedures responsive to those risks we obtained an understanding of internal control Rel to the audit in order to design audited procedures that are appropriate in the
047circumstances but not for the purpose of expressing an opinion on the effectiveness on the district's internal control we evaluated the appropriateness of accounting policies used in the reasonableness of significant accounting estimates made by man well as evaluated the overall presentation of the financial statements and accompanying schedule of expenditures of federal Awards we concluded whether in our judgment there there are conditions or events considered in the aggregate that raise substantial doubt about the district's ability to continue as a going concern for a reasonable period of Time We examined various transactions to determine whether they were executed both in Manner and in substance in accordance with governing Pro provisions of laws rules regulations contracts and Grant agreements we determined whether corrective actions were taken from the finding included in the prior audit report we also assessed the
048reasonableness of the summary schedule of Prior audit findings prepared by the district we conducted our audit in accordance with the auditing standards generally accepted United States of America America applic applicable standards contained in government auditing standards issued by the comp drer General of the United States entitled to United States code of federal regulations part 200 the uniform administrative requirements cost principles and audit requirements for federal Awards AIT disclosed that basic financial statements of the P County District School Board District were uh presented fairly in all material respects in accordance with prescribed Financial St financial reporting standards our a did not identify any deficiencies and internal control over financial reporting that we consider to be material weaknesses however we did we noted a certain significant deficiency specifically our finding number 2024-the contrary to Gap District Personnel
049did not report all deferred outflows of resources related to pensions and erroneously recorded insurance claims expenses twice in the internal service funds the results of our testing disclosed no instances of non-compliance or other matters that are required to be reported under government auditing standards issued by the com droller of the United States we audited the district's non compliance with applicable or compliance excuse me with applicable federal award requirements the Child Nutrition cluster student support and academic enrichment program and the education stabilization funds were audited as major funds the results of our audit indicated that the district materially complied with the requirements that could have had Direct IM material effect on each of its major federal programs and that concludes our brief presentation summary of the audit any questions or concerns if if I can jump
050in um for the committee members you should have um received a cop a copy of the full act for and the auditor General's report um in a previous email from Carol um if I can address the the uh finding that we had um the one related to the double expensing on the internal Services um side so that is one that we've already um looked at and have a plan in place for this coming year um this came as a result of um a e e e of the property taxes we start to receive our ffp funding the state um distributes that in um bimonthly payments starting each year in July and that that funding obviously that budget the state amends throughout the year and so those payments tend to hover around a similar amount but
051they they do fluctuate and change but we are getting a payment by monthly whereas our local Capital our local dollars coming from the two different millages we have one being our local Capital Improvements millage or what we call our LCI fund which is restricted for facilities and maintenance and then our general operating millage which is the larger of the two we start to see that money with the budget being adopted and the millage being adopted in um early September we start to receive those funds typically right at the end of November but the majority comes in through the month of December as the local tax collector collects those funds and then they sweep them over to uh the the different government agencies so you'll see a $95 million loss here being reflected for October but
052um I I ran some numbers out of the system as of last week um our original budget for you see here where it says local sources as of October we had only received 7.1 million and some of that is other local sources that we get of Revenue but you'll see we still had a a the majority of it outstanding from the budget side because we had not started to collect that that tax revenue yet um as of last week we've actually received on the general fund um side our budget was $ 275.50 million is what we budgeted and um as of last week we've received 20 51.7 million so roughly 91% has already come in between December and January um on the on the capital fund side this is still the general fund um here's
053our Capital funds you can see we have um a budget from the local side of that 187 mil 108 .8 million is budgeted for our local Capital millage we've received 99.5 million of that so again roughly 91% as well of our LCI funds are in so when we received those bulk dispersements during December and January we um we obviously send that money out to some of the investment accounts that we have to hold them there try and earn as much interest as we can for the district but then through the next six to well really through the next calendar year um till we receive our tax money again in December of next year of this year we'll start to draw down from those investments in order to meet cash flow needs so it's it's kind
054of with the state it's more steady we get two monthly payments from starting in July through the end of June for the fiscal year whereas with our tax local tax dollars it's more of a a roller coaster we're we're drawing down from the previous year's collections through July through October November to meet our cash flow needs then we get a lump suum in in January and we start to work our way down from there through the next year the other item I like to usually share is our projection for the ending fund balance in the general fund um one figure that the board is very aware of and usually um likes to be kept up to date on is what the ending fund balance is for our assigned and unassigned fund balance in the general
055fund that's the part of the fund balance that the board has a lot more discretion on how to use that funding um some of the other items in the in the fund balance are are the restricted as you see there we have certain funding from the state that's required for certain programs so um it's restricted as well as our inventory as at October we were projecting to end the fiscal year at 7.85% the board many years ago passed a policy where they want to see the fund balance end at 5% or higher um the state rules are that any District that falls under 3% in that unassigned assigned fund balance in their general fund um is now out of compliance if that happens and the state will step in at that point they'll they'll see
056that as a as a deteriorating deteriorating Financial condition if that number Falls below 3% so the board set a policy to budget and keep it at 5% so that we have you know some flexibility above that 3% the latest figures I checked with our budget Department um to project what the ending is going to be for this fiscal year um it's still they don't have a projection as of this morning um it's important to note that we are some of you may be aware the negotiations for salaries with the teachers union is still not finalized um there are some agreements already that have taken place but it has not been ratified and finalized by the union so um the numbers they gave me is as it stands right now just with the projected um raises
057that are to happen we would be looking to end fiscal year 25 at 88.1% um I'm sorry that's without the the negotiated raises if those were not happen we would end at 88.1% but we know that that that negotiation is ongoing and and and will ultimately occur as it stands right now with the projected raises that are are being negotiated on if those were to take place as as it stands today the ending fund balance would be 7.3% but another figure to look at and and and more importantly is probably more around where we think it will negotiated raises in place but also we have a loss that we were just made aware of through the ffp of $19 million for the year that's the the state money that we get um that ffp reduction
058was1 million and that would put the ending fund balance at 5.7% which is still above the um board's policy of 5% that loss came as a result of um student counts FTE changes um it actually the state put out what is called third calculation with that again that that amendment that happens with the budget every year the multiple amendments um it it's actually kind of late to be receiving it um last week we received it the first week of March typically third calculation the state puts out middle of January um the state had a delay it it was all all school districts were were waiting on that calculation to come out to to be able to make any amendments to their budgets depending on what that change was going to reflect um in talking with
059individuals from the state part of their delay and getting that third calculation out is dealing with the um the the vouchers for the students the H school and the private school vouchers that the students get and the state being able to reconcile on their end the count of those students because um what many districts were seeing is at the beginning of the school year you would see where a parent filed for the voucher had the intent of doing the homeschooling or sending their child to a private school but later on as the school year progressed October November if plans change if that private school could not provide the student the services they needed they would bring them back into the public school while that part of that funding had already followed the student to that
060private school or the voucher was already issued to the parents that were doing homeschooling and so the state had to kind of go back and reconcile the counts to make sure if a student was being reported at a district but at the beginning of the year the intent was they were going to go to a private school where in fact was that student actually at and then being able to reconcile and adjust so that again the funding can follow the student if some of that funding was consumed already by the private school then what portion is left to go back to the public school that is now servicing that student that came back in so very comp Le Lex um the last two years with that new legislation passing hopefully the state is looking at
061some um changes into how all that is calculated and how they reconcile on their end so that the school districts can get a um Can can get those calculations sooner and know what the impact on their budgets are going to be Aline there's a question in the chat yes I'm sorry um Mr Mountain um do you are you referring to our local funding or our ffp from the state um I'm referring to are are we going to do you anticipate collecting what we projected at the beginning of the year for the amount of Revenue so for the local um tax dollars that we receive from the from the property taxes we always budget at 96% so that number that you see there reflected in our in our budget is is 96% of what we we
062were um what was calculated from the Property Appraiser's office we always do we always just budget at 96% to allow some wiggle room for what and and and also traditionally that's what we've seen we tend to collect between 96 to 98% um we do see some residuals from prior years that come in in the subsequent years but typically 96 to 98% is what we we seem to collect from from the property appraisers calculation um from the ffp the state side we will get what they tell us we will get um with third Cal like I like like I said there was an adjustment to our district where there was a $19 million reduction from what was projected for the beginning of of the year but it's important to note that that that that revenue is
063based on student count so that $19 million reduction is is reflected in a reduction in the student count that was projected at the beginning of with with that student count coming down then our expenses also go down because there's less students in the system yeah theoretically that's that's correct I that makes sense yes very good thank you that's that's all I I had there any other questions for accounting okay line thank you for that presentation now we'll move on to the internal audit update I trust you can see my screen no ah because I didn't share there we go now now can you see it [Music] okay all right um we're gonna start off talking about some school Audits and investigations that we did um as a result of various um ways it came to
064our attention um we have several that the accounting department brought to our attention um and then staff members and so forth so I'm going to let Luke he worked on these I'm going to let Luke talk to you about these hey good morning again um yeah we're going to go over these uh you can uh ask questions as it go you can put them in the chat or you can uh save them for the end uh whatever you prefer uh so the first one was related to the Career Technical and adult education um area of the district um that includes our technical colleges and our adult schools um that are within the district uh so there was a staff member at Ridge Tech techncal Center who reported to us concerns about fund balances in the
065school's internal accounts um District level uh transfers between internal accounts and reallocation of funds were made without the approval from the directors of the tech colleges and the adult schools so this actually resulted in some of the internal accounts of the school being in a deficit and as well as funds that were deposited to incorrect accounts uh including a faculty account that is not allowed by policy so the new uh senior director at who uh just came on at the end of last year um of the ctae department uh she responded that they are committed to ensuring that all fund transfers and reallocations will strictly adhere to board policies and uh also require that the necessary approvals are obtained from the directors of those schools um let's see we have um a couple related to
066a specific internal account um so the accounting department requested that we audit the following schools PTA PTO internal account so this internal account is an account that is specifically designated for um like donations that are received from the schools outside PTA PTO so an outside PTA PT would be um like an organization that has an external bank account you know their accounting doesn't flow through uh the school districts internal accounts they have it's a separate organization from the school district so PK City Elementary School uh the school has not had an operative outside uh PT for nine years um so that we reviewed all of the uh deposits and expenditures and their PTA PTO internal account for the 23 24 school year um so obviously since they didn't have you know an outside PTO that
067was functioning and operative there shouldn't have been any you know Revenue that was coming into this account because this account is only for U monies received from an outside PT uh so what we found was that there was purchases for staff from student funds totaling 4,57 um incorrect use of the PTO just overall of that internal account and also errors in coding deposits so uh at the end of the audit we basically provided the school directive on how to reclassify All the Monies that flow through that account so they made the necessary uh reclassification of expenditures to the correct fund or or internal account and also more um they did more transfers to actually zero out that account because um you know as I mentioned there shouldn't have been any money flowing through it in
068the first place since there wasn't an active of PTO at the school um we also directed the principal to the internal accounts manual so that she could reference it for the future um there is a inperson training that's uh typically conducted for principles and secretaries um but the assistant director of accounting uh Earl uh at the time of the audit he also offered the principal a a separate in-person training just at one-on-one with the principal and finance secretary uh because that is something she requested so um that was also offered by the accounting department for that audit and then again with the uh PTA PTO internal account this was Lincoln Avenue academy uh the school did did have an an external active external PTO in this case um so our our method was the same
069we reviewed all the deposits and expenditures and the account for the current school year and two previous years um there the majority of Revenue uh it did appear to be from uh the school's PTO so it was you know actual funds that should have been in the account but there was also funds from uh just general student Collections and fundraisers that were being deposited into that account as all as well so it was all being mixed together essentially in that internal account so of that total that was collected there was only $1,068 that could be spent on staff from the PTO uh but during the audit we actually got a letter from the PTO that they approved the use of an additional 8,545 to be spent at the principal's discretion and you know obviously the
070principal chose to use it for faculty um so therefore there was 17 three 326 that was spent on staff in total and if you subtract the 8545 and the 1068 you get 7,713 was excess funds that were spent on staff that should not have been so it should have been you know in a different internal account spent on students Etc it should not have been spent on staff so we recommended the necessary transfers to move funds to the correct internal accounts and then other things that we also found uh just during the course you know of the investigation of reviewing all of their deposits and things were uh collections that weren't properly documented on prenumbered receipts uh funds that were not turned into the school office the same day collected and deposited reports that contained
071inaccurate and missing information uh we did advise the principle of the appropriate policies and procedures for internal accounts and we made recommendations you know in our audit report and other things as well so all right this is uh the last of the PTA PTO investigations this was relle School of the Arts uh the school does have an active external PTA again the method is the same we reviewed all the deposits and expenditures in that internal account for the current and previous school years the revenue totaling 17,46 3 was posted to the PTT internal account during those years um it was primarily from uh student collections for things like uh unforms miscellaneous merchandise school fundraisers ETA Etc just the things that students would uh you know generally pay money for during the course of the school
072year so of that total revenue that posted to the account we identified 3,95 that could be spent on staff however there was a total of 5,250 50 that was actually spent on staff so that was an excess spending on staff of 1,345 um again we recommended the necessary transfers to move funds to the correct internal accounts and uh when I say that in all these cases it was um basically reclassifying the expense to The Faculty account so when they spend an excess of 1,345 on staff we go back and say hey that should have been spent out of the faculty account because that's the only account where you can spend money on faculty and staff so they basically reclassify the expenditure so that it charges The Faculty account that way all the accounts are made
073whole so to speak at the end of the audit so other findings that we found during the audit forms and receipts uh collections not turned into the school office the same day deposit reports and bank deposit slips that contained inaccurate or missing information and unauthorized purchase on the amount of 1583 made by a staff member with the school's purchasing card that was a personal uh purchase that was made with the district's PE card but the school was reimbursed uh during the audit when we brought that to the attention of the school so revised the principle of the appropriate policies and procedures for internal accounts and made other recommendations so Luke Luke I ask what is the what is the time frame for these um that you're reporting on when is it current is it for
074last school year what so they were they were all different the first one that I went over was just like the current year but then those next two we you know we look at the current year and then what we see is like um when we go back to like a previous year so like for example 232 four was like the year we were looking at for those but then when we went back to 22 23 we saw hey there's like a lot of Staff expenditures in um in that year too and there's like a carryover from year to year because internal accounts the funds carry over from year to year it's not like a budget account where you get a new budget every year you know whatever was left at the end of last
075year is just you know swept back to the general fund or whatever internal accounts is like your personal checking account account where the balance rolls you know every month every year from year to year so it's hard to it was hard from an audit standpoint to like make a clean break at the end of the year because there's money that's you know donation that was received for students in 2223 but part of that money is rolling forward 23 24 you see what I'm saying so it's like we had to kind of figure out the best way to um you know just make it so that we were reporting on all the money together and that it made sense for us so in some cases we it was actually three years I think one was just
076one year because there wasn't as much activity the previous year so we had to kind of make that judgment call as far as what years to include on that based on the activity that we saw in that account so thank you so uh tanok High School uh this is not related to the PTA PTO internal account different different subject here so the principal brought her concerns to internal audit that the school's band director was not following policy for funds collected expenditures fundraisers and the utilization of the band booster club um because the booster club officers so like the president and the treasurer Etc they were not very active the band director he was serving as sort of a a quasi booster Treasurer who was receiving fund collections from students and making expenditures uh himself he
077had access to cash app and a debit card associated with the booster external bank account so our method we reviewed the boosters Financial records including um their outside bank statements the the general ledger that was kept and then receipts for expenditures and the booster club's annual financial report so revenues primarily from concessions and fundraisers total 9,825 and expenditures total 8,866 resulting in a profit of 959 for the 2324 fiscal year uh expenditures did appear to be related to the purpose of the band booster club itself um however one thing we did see was that there was three purchases for $82 that were delivered to the band director home address which is you know not a good business practice and then we had no way to verify if all the cash collections were actually accounted for
078because um just of the the question of the records that were kept so the main thing here that we uh made our recommendation was that the operation of the booster club is not the responsibility of any School employee so somebody who's working for the district the the you know P County School District should not be collecting funds on behalf of an outside organization that's the duty of you know the officers of that organization so we advise the principal that if the booster club were to continue uh in existence it should be operated by a board of directors made up of volunteers membership of parents and community members and then the principal must require Financial accountability of the booster club including the policies and procedures outlined in our report and on a checklist that we have
079and that we provided to the school and to the booster club as well we did recommend that the principal issue the band director a level a letter of expectation or a level of discipline uh as appropriate in this audit so okay if there's no more questions about those investigations um I'm going to turn it over to deina was going to briefly talk about some payroll audits that she completed hello good morning again um so we completed the payroll audits for the 2324 fiscal year um we issue a summary report for all 21 payroll audits completed for the 2324 fiscal year the report and bar graph of common findings from the past three years were issued to the school board superintendent management and to all schools and departments so that they can see the type of
080findings we typic have in order to prepare for future audits six out of the 21 audits 29% had more than the average number and severity of findings for those schools we recommended that the principal provided increased oversight to ensure that the payable records are accurately accounted for we also commended Carlton palore Elementary for having a minimal number findings the most common findings that we found were as follows um sap posting errors in all audits 100% of them time record deficiencies in all audits 100% of them Le form errors or omissions in 19 out of 21s for 90% of them and um non-exempt employees working outside of the normal plan working time without approval or adjustment to pay in 16 out of 21 76% and then the principal did not approve all payroll entries in sap
081which is an internal um control deficiency in 14 out of 21 audits for 67% of them we also found unrecorded absences in six audits out of the 21 so that was a 29% um we also completed um and that was it for the pay audits for last school fiscal year anyone have any questions about the payall audits okay then we also did the outside support organizations um so every year outside support organizations PTA PTO booster clubs Etc are required to submit an annual financial report and AFR to the internal audits Department we sent reminders and work with school staff to obtain missing sign signatures final final reports for close out groups Etc we receive an AFR for 114 out of 120 schools that have um outside support organizations for the 23 24 fiscal year those
082schools that did not file an AFR with the district received a finding in the internal funds audit from the external Auditors any questions on that thank you deina okay so now we have two more audits that I'm going to cover I know we're getting a little late here uh we did a purchasing card audit the district utilizes a purchasing card program um where every principal and director of a department has issued their own um credit card and so um um we looked at a sample of those during the 23 24 fiscal year the district had 768 purchasing cards and the purchases total 10.9 million we uded the purchasing card activity for budgeted funds because Jennifer Christensen and her group audit purchasing card activity for the internal accounts so we looked at 25 schools and departments
083total of 28 card holders for last fiscal year three card holders had clean audits with no findings we had a couple a school and two departments and then the rest of the findings are listed there um temporary increases in credit card limits were not returned or their normal limits in a timely manner for seven car card holders and that's our purchasing department that lifts those increases approval was not on file for a credit card limit increase requested by a card holder they have to request and then it gets approved so that wasn't on file um the refresher training course was not completed by nine card holders in our sample we had some disallowed purchases by one card holder insufficient receipts for 42 purchases by 16 card holders account coding error 64% and um a a
084TDA which is our temporary Duty assignment form was not attached for travel related expenses for five card holders 14 travel expenses sales tax was paid on exempt purchases and other required documentation was was not attached each new card holder must attend a training session before being issued their card and in online refresher course for procurement cards is required to be completed annually by all card holders and their support staff we serve as their delegates a PE card manual is also available on the district website any questions about PE cards and then lastly we did a travel expense audit we reviewed a sample of in-county and outof count travel reimbursements to employees uh we looked at Florida statute and and in-house policies and procedures we tested for proper calculation per Dum proper um paperwork Etc we
085looked for any duplicate payments and reviewed internal controls the findings were TDA was not finalized before the commencement of Al County travel in seven cases a duplicate payment was made to one employee mileage was calculated incorrectly for two employees nine employees requested the incor incorrect amount of per DM based on the agenda for their conference 15 out of 60 vouchers included errors or omissions and a conference agenda was not attached for one reimbursement as you see accounting does a preliminary U review of all of this before they make a reimbursement and so they caught a lot of this couple of things a few things that we caught during the audit but then they were retroactively corrected and that's all I have for that any any questions on that okay well I think our last order
086of business is to nominate a new chair um I have spoken to miss Terry Loretta and she um expressed her willingness to serve as chair she's been a member since October of 2020 and she has valuable experience and we appreciate her um dedication to the committee are there any other nominations anybody want to serve as chair I figured nobody would be jumping up and down but okay so Cena let's call for a vote all those in favor of Miss Terry Loretta to serve as chair of the audit and finance committee signify by saying I I any oppose like sign the motion passed unanimously congratulations and thank you Miss Loretta and we can schedule our next um um meeting for Tuesday June 3 at 9:00 am that suits everyone I try to do the first Tuesday
087keep it consistent okay well thank you all for your time and participation have a great day thanks Carol thank you