EXTRA CLASSROOM ACTIVITY FUNDS
MANAGEMENT COMMENT LETTER
Board of Education
West Genesee Central School District
Camillus, New York
In planning and performing our audit of the financial statements of the Extraclassroom Activity Funds of West Genesee Central School District (the School District) as of and for the year ended June 30, 2020, in accordance with auditing standards generally accepted in the United States of America, we considered the School District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the School District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
During our current year audit, we became aware of other matters with respect to internal control. This letter summarizes these comments and recommendations regarding these matters. This letter does not affect our report dated September 24, 2020 the financial statements of the Extraclassroom Activity Funds of the West Genesee Central School District.
Current Year Findings
West Genesee High School
During our current and prior year audits, 1 club was financially inactive.
We continue to recommend clubs be reviewed by Faculty Advisors annually and either dissolved or re- activated in conformance with board policy and guidance from The Safeguarding, Accounting, and Auditing of Extraclassroom Activity Funds.
Current Year Finding High School
Timely Deposits: Finding:
During our current year audit, 1 of 10 deposits tested were not submitted timely to Central Treasurer.
In order to safeguard assets, we recommend developing and implementing specific procedures which dictate how receipts will be handled from time of receipt until submission to the Central Treasurer, including proper dating and authorization of receipt documents and deposits. Monies should be secured at all times and submitted to the Central Treasurer within 3 business days of receipt.
Prior Year Finding Resolved
Camillus Middle School
Cash Receipts – Timely Submission
During our prior year audit, 1 of 10 receipts examined was not submitted to the Central Treasurer timely.
During our current year audit, all receipts selected for examination were submitted timely to the Central Treasurer.
As a result of the remote learning environment mandated due to COVID-19, it appears the School District’s Extraclassroom Activity Funds were not maintained in accordance with Board-approved policies and procedures. During our current year audit, 3 of 30 cash receipts were not approved by a Student Officer; 3 of 30 cash receipts did not provide adequate documentation; and 1 of 30 cash receipts did not have a profit and loss statement. It should be noted each of these occurred after school was closed due to COVID-19.
It is reasonable that controls and procedures were not developed to ensure all club activity was properly tracked and approved by the students due to the unprecedented nature of this school closing. However, we recommend the School District examine its Extraclassroom Activity Funds policies and procedures to ensure the students properly approve and track club activities in the event of future school building closures.
We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various school district personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.
This communication is intended solely for the information and use of management, the Audit Committee, and the Board of Education, and is not intended to be, and should not be, used by anyone other than these specified parties.
This communication is intended solely for the information and use of management, the Audit Committee, and the Board of Education, and is not intended to be and should not be used by anyone other than these specified parties.
Insero & Co. CPAs, LLP
Certified Public Accountants
Ithaca, New York
October 2, 2019
Insero & Co. CPAs, LLP
Rochester | Ithaca | Corning | Cortland | Watkins Glen | (800) 232-9547 www.inserocpa.com
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