audit_findings: 48

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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
48 wa-sao 1021386 2017-001   WA Manson School District No 19 School District 1822   no_match Washington State Auditor's Office Accountability audit — Manson School District No 19 Accountability 2017 2014-09-01 2017-08-31 2018-05-24 misappropriation       The District’s internal controls over Associated Student Body activities were insufficient to safeguard against potential loss and noncompliance with laws and regulations Background Districts may use Associated Student Body (ASB) funds for optional and noncurricular student activities that are cultural, athletic, recreational or social in nature, or that otherwise support ASB activities and programs. Manson School District’s ASB program collected revenue of about $68,000, $79,000 and $104,000 during fiscal years 2015, 2016 and 2017, respectively. Description of Condition Our examination identified the following conditions: Fundraisers and events For each event or fundraiser, the ASB should retain source documentation of activity such as beginning and ending number of tickets sold, inventory change, or manual receipts issued to reconcile against actual funds collected. Without this reconciliation, the ASB might not be able to detect potential losses of inventory or funds promptly. Our examination found the District did not document ASB Fundraiser Activity for all three fiscal years under audit. Therefore, the District cannot determine whether it received all money owed to it, and ultimately whether a loss or misappropriation occurred. In addition, the ASB Council meeting minutes contained insufficient detail and did not clearly state approvals of activities and events. Student Store The District could not demonstrate whether it reconciled inventory counts to sales for any of the four days we tested at the store. ASB Council meeting minutes For the three years under audit, the high school ASB Council met on a weekly basis and the middle school Council met on a bi-weekly basis. However, the District was able to provide documented minutes for only 15 meetings. In addition, the minutes Washington State Auditor’s Office Page 7 on file were not complete, lacking approval and support for purchases and fundraisers. Negative club balances Fourteen of 72 clubs in fiscal year 2015, five of 73 clubs in fiscal year 2016, and 13 of 67 clubs in fiscal year 2017 ended the year with negative balances at the club level, which does not comply with state regulations (WAC 392.138.125). Cause of Conditi on The District did not provide sufficient oversight to ensure established policies and procedures were followed by the ASB, and specifically that necessary records such as Council minutes and fundraiser worksheets were completed properly and retained. Effect of Condition Inadequate internal controls over ASB fundraising and disbursements, including insufficient approval and monitoring by the ASB Student Council, increase the risk that a loss or misappropriation of public funds might occur and not be detec ted quickly, if at all. Recommendation s We recommend the District improve internal controls over ASB activities to comply with state laws and regulation and adequately safeguard public resources. Specifically, we recommend the District: • Provide adequate training to staff and students involved in ASB fundraisers • Reconcile fundraiser receipts to expected revenues as derived from inventory sold, tickets or another method of estimating expected revenue • Prepare, retain and monitor all necessary records for ASB activities • Retain all ASB Student Council Minutes and clearly document formal approval of activities, purchases and prior minutes District ’s Response We would like to thank the State Auditor’s Office for pointing some issues with our ASB. The District plans to implement internal controls sufficient to ensure ASB records are kept as required. The District has already implemented the use of its point of Washington State Auditor’s Office Page 8 sale system in the Student Store and ASB Concessions. As part of this system, inventories are maintained and reconciled to sales. Auditor’s Remarks We appreciate the steps the District is taking to resolve these issues. We will follow-up on the condition of these matters in the next audit. Applicable Laws and Regulations Accounting Manual for Public Sc hool 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. 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 392-138-014 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. WAC 392- 138-125. As sociated student body public moneys – Disbursement approval – Total disbursements, sets forth requirements for ASB budgets and disbursement approvals. WAC 392-123-010. The Accounting Manual, sets forth the requirements for the use of the accounting manual by the District. 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. DAN Gs50-05A-13 Rev. 2 establishes the retention requirements for governing and executive board meeting minutes. 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. Washington State Auditor’s Office Page 9 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 programs, which are listed in the https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021386&isFinding=false&sp=false 2026-07-30 13:24:54