HomeMy Public PortalAboutBrewster 2007 Public Schools Audit TOWN OF BREWSTER, MASSACHUSETTS
BRE WSTER PUBLIC SCHOOLS
INDEPENDENT ACCOUNTANTS ' REPORT
ON APPLYING AGREED -UPON PROCEDURES
YEAR ENDED JUNE 309 2007
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TOWN OF BREWSTER, MASSACHUSETTS
BREWSTER PUBLIC SCHOOLS
JUNE 309 2007
CONTENTS
PAGE
Independent Accountants ' Report on Applying Agreed-Upon Procedures 1
Specific Compliance Requirements 2 - 5
Findings and Recommendations 6
R. E . BROWN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
P . O . Box 230 - 25 CEMETERY STREET
Mendon , Massachusetts 01756
Phone : (508) 478 -3941 Fax : (508 ) 478 - 1779
INDEPENDENT ACCOUNTANTS ' REPORT
ON APPLYING AGREED -UPON PROCEDURES
To the Honorable Board of Selectmen
And Members of the School Committee
Town of Brewster, Massachusetts
We have performed the procedures enumerated in the attached appendix, which were agreed to
by the management of the Town of Brewster, Massachusetts (the " Town " ) and Brewster Public
Schools , solely to assist you in evaluating the completeness and accuracy of the Town' s
Massachusetts Department of Education (the " Department " ) End- of-Year Pupil and Financial
Report for the year ended June 30 , 2007 , and to demonstrate the Town' s compliance with the
requirements for preparing that report as specified by the Department . The Town of Brewster
and the Brewster Public School ' s management is responsible for the End- of--Year Pupil and
Financial Report for the year ended June 30 , 2007 . This agreed-upon procedures engagement
was performed in accordance with attestation standards established by the American Institute of
Certified Public Accountants . The sufficiency of these procedures is solely the responsibility of
the specified users of the report . Consequently , we make no representation regarding the
sufficiency of the procedures described in the accompanying appendix that follows either for the
purpose for which this report has been requested or for any other purpose .
We were not engaged to , and did not conduct an audit, the objective of which would be the
expression of an opinion on the completeness and accuracy of the End- of-Year Pupil and
Financial Report filed with the Department . Accordingly, we do not express such an opinion .
Had we performed additional procedures , other matters might have come to our attention that
would have been reported to you .
This report is intended solely for the information and use of the specified parties listed above and
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s not intended to be and should not be used by anyone other than those specified parties .
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Certified Public Accountants
February 7 , 2008
SPECIFIC COMPLIANCE REQUIREMENTS
Schedule 1 - Revenue & Expenditure Summary
1 ) Revenues
a) Revenue from Local Sources
1 ) Trace Revenues from Local Sources reported on Schedule Ito the municipal and district
accounting ledgers . These amounts should agree .
C , D , and E . Revenues from Federal Grants , State Grants and Revolving " Special Funds
2 ) Trace the revenue from state aid, federal grants , state grants , and revolving and special
funds to the detail in District' s accounting ledgers . These amounts should agree with the
possible exception of revenue from state aid, federal grants and state grants , which are
entered by the State based on allotments .
II . Expenditures
a . By School Committee and B . By City or Town
3 . Trace the amounts reported for general fund education expenditures from Schedule 1 line
1850 to the municipal accounting ledgers and to the district accounting ledgers . These
amounts should agree . If a " crosswalk " exists between the accounting ledgers and the
EOYR, verify that the crosswalk agrees with the accounting ledgers in total and trace a
sample of expenditures from the crosswalk to the accounting ledger .
4 . Trace the amounts reported for a sample of DOE functions (i . e . teaching, principal) , State
Objects (i . e . professional salaries (01 ) , other salaries (02) , and other expenditures (04 - 06)
and DOE programs (i . e . regular day , SPED , etc . ) in Schedule 1 to the detail in the
accounting ledgers or to the crosswalk, if applicable . These amounts should agree .
5 . Test Extraordinary Maintenance expenditures for the following (4300) : Verify that
expenditures do not include salaries . Verify that the expenditures include applicable
principal portions of a loan or the cost of a lease/purchase agreement . Verify that
expenditures classified as Extraordinary Maintenance (4300) do not exceed the per
project dollar limit for extraordinary maintenance ($ 100 , 000) . Trace the expenditures to
the detail in the accounting ledgers .
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6 . Determine how expenditures for fringe benefits are assigned or allocated to Schedule 1
Employee Benefits " Insurance (5100, 5200) , Trace the reported cost to the detail in the
accounting ledgers using the methodology indicated . These amounts should agree .
7 . Verify that expenditures charged to Line(s) 1683 and 2060 - Short-term Interest (5400)
relate exclusively to Revenue Anticipation Notes (RAN' s) .
8 . Verify that expenditures charged to Line 1684 and 2065 - Short-term Interest - BAN's
(5450) relate exclusively to Bond Anticipation Notes (BAN ' s) .
9 . Identify expenditures reported as long-term School Construction debt for principal (8 100)
and interest (8200) , Verity that bond anticipation notes are not included in these
functions . Trace the reported costs to the Treasurer's debt schedule . Trace the reported
amount to the detail in the accounting ledgers , These amounts should agree . NOTE : If the
district received a lump sum wait list payment from the Mass . School Building Authority,
verify that the revenue was reported on line 130 and that expenses were reported for
paydown of principal ( 8100) , or Purchase of Land and Buildings (7100 , 7200) if
applicable .
10 . Trace the expenditures for tuition payments : to other school districts in state (9100), to
out of state schools (9200), to non-public schools (9300) , to member collaboratives
(9400) , and assessments to member regional school districts (9500) to the detail in the
accounting ledgers . These amounts should agree , NOTE : If the district prepaid FY ' 06
Special, Education Tuition, verify prepaid tuition was not included as an FY' 05 expense .
If the district prepaid FY' 05 tuition from FY'04 , that amount should be included as an
FY' 05 expense ,
11 , For municipal expenditures that result in services directly related to the school
committee :
a , Obtain a copy of a written agreement between the School Committee and
Municipal officials documenting agreed upon methodologies to be used when
allocating, distributing or assigning Municipal expenditures to the District.
K Test the amounts reported using the documented methodology . These amounts
should agree .
12 . Expenditures from Federal Grants , State Grants and Special Funds
a. Trace amounts claimed as Circuit Breaker expenses on line 3080 Column 5 to the
Accounting ledgers .
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Schedule 3
For Schedule 3 expenditures :
13 . Trace the amounts reported by school location on the linked file to the accounting
ledgers . These amounts should agree .
a . If staff is assigned to more than one school , determine if the District maintains a
payroll system or spreadsheet to document the assignment of staff salaries by
school location.
b . If allocations are used to assign staff salaries to schools , programs , functions or
objects , was the allocation supported by a documented methodology?
c . If allocations are used for non- salary expenditures , determine if the District
maintains a documented methodology for consistency in application. Allocations
are acceptable on Schedule 3 for non- salary expenditures although direct
assignment or charging is preferable .
Schedule 4
14 . Ascertain the methodology used to allocate , distribute or assign SPED costs to the
placement on Schedule 4 . Test the amounts reported on Schedule 4 using this
methodology . These amounts should agree .
15 . Trace the costs reported by placement on Schedule 4 to the corresponding students ' full
time equivalencies (FTE' s) reported on Schedule 11 . Check the consistency in reporting
categories of prototypes in Schedule 4 to Schedule 11 .
Schedule 7
16 . Trace the transportation expenditures reported on Schedule 7 to the transportation
expenditures reported on Schedule 1 . These amounts should agree . Determine the
methodology used to allocate transportation expenditures on Schedule 7 and verify the
accuracy of the allocations . Also if applicable , verify that reimbursable expenditures have
been reduced by transportation revenue received from students transported .
17 . Trace the pupils reported on Schedule 7 to the detailed transportation records and verify
that the amounts reported on Schedule 7 are accurate and consistent with the detailed
records .
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Schedule 13
18 . Obtain a listing of teachers and their applicable FTEs and compare to the FTEs reported
on Schedule 13 . These amounts should agree .
Schedule 19
19 . Determine if the School District has reported all changes to Schedule 19 Part A . 1 -
Appropriation by School Committee to the DOE . Compare the final School Committee
Appropriation to Schedule 19 Part A . 1 as filed/amended to determine if all changes were
reported .
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FINDINGS AND RECOMMENDATIONS
Finding: Schedule 1 — requirement 3 — In our review of the crosswalk between Schedule 1 total
expenditures ( line 1850 ) to the School Department ' s accounting ledger and the Municipalities accounting
ledger, we noted that the School Department ' s total expenditures ( line 1850 ) of $ 5 ,431 , 573 as compared
to the Municipalities education expenditures of $ 5 ,421 , 551 was overstated by $ 10 , 022 . Per the
instructions of the School Department, the municipality charged $ 9 , 922 in expenditures for special needs
educational assistants from the Eddy School to the Circuit Breaker Special Revenue account while the
School Departments accounting ledger did not record this transaction .
Criteria: All School related expenditures should agree with the total amounts reported on both the
Town ' s and School Department ' s accounting ledgers .
Recommendation : We recommend that the Brewster School Department record all education
expenditures on Schedule 1 ( line 1850 ) as shown in both the School Departments and Municipalities
accounting ledgers .
Response: The School Department will record all education expenditures , and will amend the FY 07
Brewster End of Year report and record the $ 9 , 922 expenditure .
Finding: Schedule 1 — requirement 12 — In our review of the expenditures for Circuit Breaker on line
3080 Column 5 to the detail in the Municipalities accounting ledgers, we noted that the amount reported
on line 3080 Column 5 for Circuit Breaker was understated by $ 3 , 966 . The Circuit Breaker Expenditure
should have been $ 55 , 944 not $ 51 , 978 as reported .
Criteria: The amount reported as Circuit Breaker expenditures ( line 3080 ) Column 5 should be traceable
to the Municipalities accounting ledger .
Recommendation . We recommend that the Municipality report all Circuit Breaker expenditures as
recorded in the Municipalities accounting ledger .
Response: The School Department will report all Circuit Breaker expenditures , and will amend the FY 07
Brewster End of Year report, and record the additional $ 3 , 966 Circuit Breaker expenditure .