Audit Extra Classroom Activity Funds Management Letter

Printable Version of Extra Classroom Activity Funds Management Comment Letter

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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, 2018, 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 28, 2018 on the financial statements of the Extraclassroom Activity Funds of the West Genesee Central School District.

OTHER MATTERS

Current Year Findings

West Genesee Middle School

Inactive Accounts
Finding:
During our current year audit, 1 club was financially inactive.

Recommendation:
We 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.

Camillus Middle School

Sales Tax
Finding:
During our current year audit, sales tax was not paid as required on 1 of 7 disbursements tested.

Recommendation:
We recommend the School District conform to proper sales tax collection and remittance procedures.

Inactive Accounts
Finding:
During our current year audit, 1 club was financially inactive.

Recommendation:
We recommend clubs be reviewed by Faculty Advisors annually and either dissolved or re-activated in accordance with board policy and guidance from The Safeguarding, Accounting, and Auditing of Extraclassroom Activity Funds.

Prior Year Findings Resolved

High School

Cash Receipts – Supporting Documentation
Finding:
During our prior year audit, 1 of 10 receipts tested lacked sufficient supporting documentation.

Resolution:
All receipts tested had sufficient supporting documentation.

Cash Receipts – Profit and Loss Statements
Finding:
During our prior year audit, 2 of 3 receipts tested lacked a Profit and Loss Statement for the applicable fundraiser.

Resolution:
During our current year audit, all applicable receipts included a completed Profit and Loss statement.

West Genesee Middle School

Cash Receipts – Untimely Deposits
Finding:
During our prior year audit, 1 of 10 receipts tested was not submitted to the Central Treasurer timely.

Resolution:
During our current year audit, all receipts tested were submitted to the Central Treasurer timely.

Cash Receipts – Profit and Loss Statements
Finding:
During our prior year audit, 2 of 7 receipts tested lacked a Profit and Loss Statement for the applicable fundraiser.

Resolution:
During our current year audit, all applicable receipts included a completed profit and loss statement.

Camillus Middle School

Cash Receipts – Untimely Deposits
Finding:
During our prior year audit, for 2 of 10 receipts tested, we were unable to determine if funds were submitted to the Central Treasurer timely. In addition, 1 of 10 receipts tested was not deposited by the Central Treasurer timely.

Resolution:
During our current year audit, all receipts tested were submitted to the Central Treasurer timely.

Cash Receipts – Sales Tax
Finding:
During our prior year audit, for 1 of 5 receipts tested, required sales tax was not collected and remitted to New York State.

Resolution:
All receipts tested subject to New York State sales tax collected and remitted sales tax.

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.

Respectfully Submitted,

 

Insero & Co. CPAs, LLP
Certified Public Accountants
Ithaca, New York
September 28, 2018

Insero & Co. CPAs, LLP
Rochester | Ithaca | Corning | Cortland | Watkins Glen | (800) 232-9547 www.inserocpa.com

If you have any trouble accessing the PDF documents on this page, please contact the Publications Office at publications@westgenesee.org or call (315) 487-2179.