{"database": "mytown-research", "table": "audit_findings", "rows": [[21, "wa-sao", "1021049", "2017-001", null, "WA", "Omak School District No 19", "School District", "1976", null, "no_match", "Washington State Auditor's Office", "Accountability audit \u2014 Omak School District No 19", "Accountability", 2017, "2015-09-01", "2017-08-31", "2018-04-30", "internal_controls", null, null, null, "The District lacked sufficient internal controls over Associated Study Body activities to safeguard against potential loss and noncompliance with laws and regulations", "Background \nDistricts may use Associated Study Body (ASB) funds for optional and \nnoncurricular student activities that are cultural, athletic, recreational or social in \nnature, or in support of ASB activities and programs. \nOmak School District\u2019s ASB program collected revenue of $188,000 and $205,000 \nin fiscal years 2016 and 2017, respective ly, and spent $165,000 and $191,000 \nduring those same years. \nDescription of Condition \nOur examination identified the following conditions: \nFundraisers \nWe tested six ASB fundraisers with $18,390 in receipts and found the ASB lacked \nadequate documentation. The District did not: \n\u2022 Reconcile beginning or ending inventory for sales, or ending receipts to \nsource documents (tickets, merchandise, manual receipts , etc.) to detect or \nprevent loss of inventory or receipts \n\u2022 Use pre-numbered tickets for a dance event or issue manual receipts when \nselling merchandise or accepting donations, or for events \n\u2022 Obtain a fundraiser reconciliation and profit analysis in four fundraisers, \nreducing the District\u2019s ability to detect potential loss \n\u2022 Include projection of revenue, expenditures and profit on the Fundraiser \nIntent Form \n\u2022 Deposit receipted funds within 24 hours of three events, which does not \ncomply with state law (RCW 43.09.240) or School District Accounting \nManual rules for timely deposits \n\u2022 Obtain Superintendent\u2019s approval for fundraisers exceeding $5,000 as \nrequired by District policy. \n \n \nWashington State Auditor\u2019s Office Page 7 \nCash Receipting \nThe District lacked adequate independent monitoring of ASB receipts and \nindependent review of the ASB imprest/depository account to prevent or detect \nmisappropriation or loss. \nDisbursements \nThe ASB Council did not routinely approve payments as required by state \nregulations (WAC 392-138-125). The Council formally approved only $575 of the \n$356,000 spent during the audit period. \nMeeting Minutes \nThe District could not provide minutes for 20 meetings of the ASB Council during \nthe audit period. Due to the lack of minutes, the District could not provide evidence \nof Council approval for 46 of the 109 fundraisers conducted during the audit period. \n Negative Club Balances \nOf the 84 active ASB clubs, seven clubs in 2017 and two clubs in 2016 ended the \nyear with negative balances at the club level, which violates state regulations \n(WAC 392-138-125). \nCause of Condition \nDistrict management has not routinely monitored ASB activity or provided the \nnecessary support and policies for staff and ASB Council to enforce club \ncompletion or retention of the required documentation for fundraisers. In addition, \nstaff lacked technical knowledge of ASB requirements to approve all fundraisers, \napprove all payments during ASB meetings, retain those meeting minutes and \nrefrain from allowing clubs to spend more than their fund balance. \nEffect of Condition \nInadequate internal controls over ASB fundraising and disbursements, including \ninsufficient approval and monitoring by the ASB Student Council or management, \nincrease the risk that a loss or misappropriation of public funds might occur and not \nbe detected quickly, if at all. \n \n \n \n \nWashington State Auditor\u2019s Office Page 8 \nRecommen dations \nWe recommend the District improve internal controls over ASB activities to \ncomply with state laws, regulations and District policy to safeguard public \nresources. Specifically, the District should: \n\u2022 Reconcile fundraiser receipts to expected revenue d erived from inventory \nsold, tickets or other methods of estimating expected revenue \n\u2022 Perform independent monitoring and review of cash receipts and imprest \naccount reconciliations. \n\u2022 Prepare, retain and monitor all necessary records for ASB activities \n\u2022 Clearly document formal approval of activities and payments in \nASB Student Council minutes retained to follow archival requirements \n\u2022 Improve policies and procedures to provide guidance about required \ndocumentation and overall fundraiser expectations \n\u2022 Establish monitoring procedures for club fund balances so budgets can be \nset to maintain a positive fund balance \nDistrict\u2019s Response \nThe Omak School District concurs with the finding of deficiencies in ASB by the \nState Auditor\u2019s Office. Our student council, advisors and coaches will attend an \nASB training provided by the State Auditor\u2019s Office in the fall. We will strengthen \ninternal controls and implement better fundraising and reconciliation procedures. \nAuditor\u2019s Remarks \nWe appreciate the steps the District is taki ng to resolve this issue. We will review \nthe condition during our next audit. \nApplicable Laws and Regulations \n \nWAC 392-123-010. The Accounting Manual, sets forth the requirements for the \nuse of the accounting manual by the District. \nWAC 392-138-014 Accounting procedures and records, sets forth requirements for \naccounting methods and procedures to follow regulations and guidelines \nestablished in the Accounting Manual for Public Schools in the State of \nWashington. \n \nWashington State Auditor\u2019s Office Page 9 \nAccounting Manual f or Public School Districts in the State of Washington, \nChapter 3, Accounting Guidelines, Internal Control Structure, sets forth \nrequirements for establishing and maintaining an effective system of internal \ncontrols. \nRCW 43.09.240 Local government accounti ng - Public officers and employees - \nDuty to account and report - Removal from office - Deposit of collections, sets forth \nthe requirement for public official to deposit public funds within 24 hours of \nreceipt. \nAccounting Manual for Public School Districts in the State of Washington, \nChapter 9, Information Unique to Each Fund, Associated Student Bodies \nAssociation, sets forth guidelines for accounting of ASB funds. \nWAC 392-138-125 Associated study body public moneys \u2013 Disbursement approval \n\u2013 Total disbursements, sets forth requirements for ASB budgets and disbursement \napprovals. \nRCW 28A.325.030 Associated student body program fund \u2013 Fund-raising activities \n\u2013 Non associated student body program fund moneys, sets forth requirements for \nconducting ASB fund-raising activities. \nRCW 28A.400.030 Superintendent\u2019s duties, sets forth requirements for the school \ndistrict superintendent to keep accurate records and detailed accounts for receipts \nand expenditures of school money. \nDAN GS50-05A-13 Rev. 2 establishes the retention requirements for governing \nand executive board meeting minutes. \nOmak School District Policy 3530P requires S uperintendent approval for \nfund-raising activities in excess of $5,000. \n \n \nWashington State Auditor\u2019s Office Page 10 \nRELATED REPORTS \nFinancial \nOur opinion on the District\u2019s financial statements and compliance with federal grant program \nrequirements is provided in a separate report, which includes the District\u2019s financial statements. \nThat report is available on our website, http://portal.sao.wa.gov/ReportSearch. \n \nFederal grant programs \nWe evaluated internal controls and tested compliance with the federal program requirements, as \napplicable, for the District\u2019s 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"]], "columns": ["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"], "primary_keys": ["rowid"], "primary_key_values": ["21"], "units": {}, "query_ms": 0.5995570099912584, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}