{"database": "mytown-research", "table": "audit_findings", "rows": [[48, "wa-sao", "1021386", "2017-001", null, "WA", "Manson School District No 19", "School District", "1822", null, "no_match", "Washington State Auditor's Office", "Accountability audit \u2014 Manson School District No 19", "Accountability", 2017, "2014-09-01", "2017-08-31", "2018-05-24", "misappropriation", null, null, null, "The District\u2019s internal controls over Associated Student Body activities were insufficient to safeguard against potential loss and noncompliance with laws and regulations", "Background \nDistricts may use Associated Student Body (ASB) funds for optional and \nnoncurricular student activities that are cultural, athletic, recreational or social in \nnature, or that otherwise support ASB activities and programs. \nManson School District\u2019s ASB program collected revenue of about $68,000, \n$79,000 and $104,000 during fiscal years 2015, 2016 and 2017, respectively. \nDescription of Condition \nOur examination identified the following conditions: \nFundraisers and events \nFor each event or fundraiser, the ASB should retain source documentation of \nactivity such as beginning and ending number of tickets sold, inventory change, or \nmanual receipts issued to reconcile against actual funds collected. Without this \nreconciliation, the ASB might not be able to detect potential losses of inventory or \nfunds promptly. \nOur examination found the District did not document ASB Fundraiser Activity for \nall three fiscal years under audit. Therefore, the District cannot determine whether \nit received all money owed to it, and ultimately whether a loss or misappropriation \noccurred. \nIn addition, the ASB Council meeting minutes contained insufficient detail and did \nnot clearly state approvals of activities and events. \n Student Store \nThe District could not demonstrate whether it reconciled inventory counts to sales \nfor any of the four days we tested at the store. \nASB Council meeting minutes \nFor the three years under audit, the high school ASB Council met on a weekly basis \nand the middle school Council met on a bi-weekly basis. However, the District was \nable to provide documented minutes for only 15 meetings. In addition, the minutes \n \nWashington State Auditor\u2019s Office Page 7 \non file were not complete, lacking approval and support for purchases and \nfundraisers. \nNegative club balances \nFourteen of 72 clubs in fiscal year 2015, five of 73 clubs in fiscal year 2016, and \n13 of 67 clubs in fiscal year 2017 ended the year with negative balances at the club \nlevel, which does not comply with state regulations (WAC 392.138.125). \nCause of Conditi on \nThe District did not provide sufficient oversight to ensure established policies and \nprocedures were followed by the ASB, and specifically that necessary records such \nas Council minutes and fundraiser worksheets were completed properly and \nretained. \nEffect of Condition \nInadequate internal controls over ASB fundraising and disbursements, including \ninsufficient approval and monitoring by the ASB Student Council, increase the risk \nthat a loss or misappropriation of public funds might occur and not be detec ted \nquickly, if at all. \nRecommendation s \nWe recommend the District improve internal controls over ASB activities to \ncomply with state laws and regulation and adequately safeguard public resources. \nSpecifically, we recommend the District: \n\u2022 Provide adequate training to staff and students involved in ASB fundraisers \n\u2022 Reconcile fundraiser receipts to expected revenues as derived from \ninventory sold, tickets or another method of estimating expected revenue \n\u2022 Prepare, retain and monitor all necessary records for ASB activities \n\u2022 Retain all ASB Student Council Minutes and clearly document formal \napproval of activities, purchases and prior minutes \nDistrict \u2019s Response \nWe would like to thank the State Auditor\u2019s Office for pointing some issues with our \nASB. \nThe District plans to implement internal controls sufficient to ensure ASB records \nare kept as required. The District has already implemented the use of its point of \n \nWashington State Auditor\u2019s Office Page 8 \nsale system in the Student Store and ASB Concessions. As part of this system, \ninventories are maintained and reconciled to sales. \nAuditor\u2019s Remarks \nWe appreciate the steps the District is taking to resolve these issues. We will \nfollow-up on the condition of these matters in the next audit. \nApplicable Laws and Regulations \nAccounting Manual for Public Sc hool 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. \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 392-138-014 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. \nWAC 392- 138-125. As sociated student body public moneys \u2013 Disbursement \napproval \u2013 Total disbursements, sets forth requirements for ASB budgets and \ndisbursement approvals. \nWAC 392-123-010. The Accounting Manual, sets forth the requirements for the \nuse of the accounting manual by the District. \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. \nDAN Gs50-05A-13 Rev. 2 establishes the retention requirements for governing and \nexecutive board meeting minutes. RCW 28A.400.030 Superintendent\u2019s duties, sets \nforth requirements for the school district superintendent to keep accurate records \nand detailed accounts for receipts and expenditures of school money.\n \nWashington State Auditor\u2019s Office Page 9 \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 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"]], "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": ["48"], "units": {}, "query_ms": 30.56620102142915, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}