audit_findings: 21

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rowid source report_number finding_number muni_id state entity_name entity_type entity_ext_id place_geoid match_method auditor report_title audit_type fiscal_year period_start period_end published_date finding_category severity questioned_cost cost_basis finding_title finding_text report_url fetched_at
21 wa-sao 1021049 2017-001   WA Omak School District No 19 School District 1976   no_match Washington State Auditor's Office Accountability audit — Omak School District No 19 Accountability 2017 2015-09-01 2017-08-31 2018-04-30 internal_controls       The District lacked sufficient internal controls over Associated Study Body activities to safeguard against potential loss and noncompliance with laws and regulations Background Districts may use Associated Study Body (ASB) funds for optional and noncurricular student activities that are cultural, athletic, recreational or social in nature, or in support of ASB activities and programs. Omak School District’s ASB program collected revenue of $188,000 and $205,000 in fiscal years 2016 and 2017, respective ly, and spent $165,000 and $191,000 during those same years. Description of Condition Our examination identified the following conditions: Fundraisers We tested six ASB fundraisers with $18,390 in receipts and found the ASB lacked adequate documentation. The District did not: • Reconcile beginning or ending inventory for sales, or ending receipts to source documents (tickets, merchandise, manual receipts , etc.) to detect or prevent loss of inventory or receipts • Use pre-numbered tickets for a dance event or issue manual receipts when selling merchandise or accepting donations, or for events • Obtain a fundraiser reconciliation and profit analysis in four fundraisers, reducing the District’s ability to detect potential loss • Include projection of revenue, expenditures and profit on the Fundraiser Intent Form • Deposit receipted funds within 24 hours of three events, which does not comply with state law (RCW 43.09.240) or School District Accounting Manual rules for timely deposits • Obtain Superintendent’s approval for fundraisers exceeding $5,000 as required by District policy. Washington State Auditor’s Office Page 7 Cash Receipting The District lacked adequate independent monitoring of ASB receipts and independent review of the ASB imprest/depository account to prevent or detect misappropriation or loss. Disbursements The ASB Council did not routinely approve payments as required by state regulations (WAC 392-138-125). The Council formally approved only $575 of the $356,000 spent during the audit period. Meeting Minutes The District could not provide minutes for 20 meetings of the ASB Council during the audit period. Due to the lack of minutes, the District could not provide evidence of Council approval for 46 of the 109 fundraisers conducted during the audit period. Negative Club Balances Of the 84 active ASB clubs, seven clubs in 2017 and two clubs in 2016 ended the year with negative balances at the club level, which violates state regulations (WAC 392-138-125). Cause of Condition District management has not routinely monitored ASB activity or provided the necessary support and policies for staff and ASB Council to enforce club completion or retention of the required documentation for fundraisers. In addition, staff lacked technical knowledge of ASB requirements to approve all fundraisers, approve all payments during ASB meetings, retain those meeting minutes and refrain from allowing clubs to spend more than their fund balance. Effect of Condition Inadequate internal controls over ASB fundraising and disbursements, including insufficient approval and monitoring by the ASB Student Council or management, increase the risk that a loss or misappropriation of public funds might occur and not be detected quickly, if at all. Washington State Auditor’s Office Page 8 Recommen dations We recommend the District improve internal controls over ASB activities to comply with state laws, regulations and District policy to safeguard public resources. Specifically, the District should: • Reconcile fundraiser receipts to expected revenue d erived from inventory sold, tickets or other methods of estimating expected revenue • Perform independent monitoring and review of cash receipts and imprest account reconciliations. • Prepare, retain and monitor all necessary records for ASB activities • Clearly document formal approval of activities and payments in ASB Student Council minutes retained to follow archival requirements • Improve policies and procedures to provide guidance about required documentation and overall fundraiser expectations • Establish monitoring procedures for club fund balances so budgets can be set to maintain a positive fund balance District’s Response The Omak School District concurs with the finding of deficiencies in ASB by the State Auditor’s Office. Our student council, advisors and coaches will attend an ASB training provided by the State Auditor’s Office in the fall. We will strengthen internal controls and implement better fundraising and reconciliation procedures. Auditor’s Remarks We appreciate the steps the District is taki ng to resolve this issue. We will review the condition during our next audit. Applicable Laws and Regulations WAC 392-123-010. The Accounting Manual, sets forth the requirements for the use of the accounting manual by the District. WAC 392-138-014 Accounting procedures and records, sets forth requirements for accounting methods and procedures to follow regulations and guidelines established in the Accounting Manual for Public Schools in the State of Washington. Washington State Auditor’s Office Page 9 Accounting Manual f or Public School Districts in the State of Washington, Chapter 3, Accounting Guidelines, Internal Control Structure, sets forth requirements for establishing and maintaining an effective system of internal controls. RCW 43.09.240 Local government accounti ng - Public officers and employees - Duty to account and report - Removal from office - Deposit of collections, sets forth the requirement for public official to deposit public funds within 24 hours of receipt. Accounting Manual for Public School Districts in the State of Washington, Chapter 9, Information Unique to Each Fund, Associated Student Bodies Association, sets forth guidelines for accounting of ASB funds. WAC 392-138-125 Associated study body public moneys – Disbursement approval – Total disbursements, sets forth requirements for ASB budgets and disbursement approvals. RCW 28A.325.030 Associated student body program fund – Fund-raising activities – Non associated student body program fund moneys, sets forth requirements for conducting ASB fund-raising activities. RCW 28A.400.030 Superintendent’s duties, sets forth requirements for the school district superintendent to keep accurate records and detailed accounts for receipts and expenditures of school money. DAN GS50-05A-13 Rev. 2 establishes the retention requirements for governing and executive board meeting minutes. Omak School District Policy 3530P requires S uperintendent approval for fund-raising activities in excess of $5,000. Washington State Auditor’s Office Page 10 RELATED REPORTS Financial Our opinion on the District’s financial statements and compliance with federal grant program requirements is provided in a separate report, which includes the District’s financial statements. That report is available on our website, http://portal.sao.wa.gov/ReportSearch. Federal grant programs We evaluated internal controls and tested compliance with the federal program requirements, as applicable, for the District’s major federal program, which is listed in the https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021049&isFinding=false&sp=false 2026-07-30 13:24:54