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Home My Public Portal AboutBrewster 2008 Public Schools Audit TOWN OF BREWSTER, MASSACHUSETTS BREWSTER PUBLIC SCHOOLS INDEPENDENT ACCOUNTANTS ' REPORT ON APPLYING AGREED-UPON PROCEDURES YEAR ENDED JUNE 309 2008 i I TOWN OF BREWSTER, MASSACHUSETTS BREWSTER PUBLIC SCHOOLS JUNE 30 , 2008 CONTENTS PAGE Independent Accountants ' Report on Applying Agreed-Upon Procedures 1 Specific Compliance Requirements 2 _ 5 Findings and Recommendations 6 _ 7 f R. E . BROWN & COMPANY CERTIFIED PUBLIC ACCOUNTANTS P. O. Box 230 - 25 CEMETERY STREET Mendon , Massachusetts 01756 Phone : (508 ) 478 -3941 Fax: (508) 4784779 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 , 2008 , 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 , 2008 . 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 En& 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 is not intended to be and should not be used by anyone other than those specified parties . Certified Public Accountants i March 31 , 2009 i SPECIFIC COMPLIANCE REQUIREMENTS Schedule 1 - Revenue & Expenditure Summary 1) Revenues a) Revenue from Local Sources 1 ) Trace Revenues from Local Sources reported on Schedule 1 -to 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 . - 2 - 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) . Verify 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' 09 Special Education Tuition, verify prepaid tuition was not included as an FY' 08 expense . If the district prepaid FY' 08 tuition from FY' 07 , that amount should be included as an FY' 08 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 . b . 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 . - 3 - 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 . Schedule 7 15 . 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 . 16 . 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 . - 4 - Schedule 19 17 . 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 . - 5 - FINDINGS AND RECOMMENDATIONS 1 . Finding: Schedule 1 — requirement 4 — Although the Total School Committee Expenditures reported in Schedule 1 are in agreement with the School Department ' s detailed accounting ledgers , our tracing of the amounts reported in Schedule lfor a sample of DOE functions : specifically, Teachers , Classroom (2305 ) through Professional Development Stipends, Providers and Expenses (2357) to the detail in the School ' s accounting ledgers is not in agreement. We noted that the education assistant salaries of $25 ,259 are reported as Substitute teachers Regular Day (Line 1063 ) in error . This amount should have been reported as All Non- Clerical Paraprofessionals/Instructional Assistants Regular Day (line 1083 ) . Criteria: The amounts reported for DOE functions in Schedule 1 should agree with the detail in the School ' s accounting ledgers . Recommendation : We recommend that the School Department report the expenditures as recorded in the schools detail accounting ledgers to the proper DOE functions in Schedule 1 . Response: An amendment was done to move line 1063 , column 1 for $ 25 , 259 from Regular Day Substitute Teachers to line 1083 , column 1 — Regular Day non-clerical Paraprofessional Assistants on Schedule . 2 . Finding: Schedule 4 — requirement 14 — In our review of the methodology used to allocate, distribute or assign SPED costs to the placement on Schedule 4, we noted that the amounts for teaching (line 3820) for $247 ,701 , textbooks & instructional equipment (line 3830) for $2, 059 , guidance (line 3840) for $ 77 , 625 , psychological (line 3850) for $ 1 ,230 , and tuition to Mass Schools (line 3880) for $262 , 600 are reported in column 3 (age 6 -21 public separate day School, doe 03441 ) in error . These amounts should have been reported in column 2 (age 6-21 public School programs, doe 034 - 10 , 034-20 , & 03440) . Criteria. SPED costs for teaching, textbooks & instructional equipment, guidance, psychological, and tuition to Mass Schools as recorded in the School Department ' s accounting ledgers should be recorded in the proper placement column lines on Schedule 4 in the end-of--year-report . Recommendation : We recommend that the School Department Sped costs be recorded in the proper placement column lines on schedule 4 in the end-of--year- report . Response: An amendment on Schedule 4 was done to move the following from column 3 to column 2 : line 3820 for $ 247 ,701 , line 3830 for $2 , 059 , line 3840 for $ 77 , 625 , line 3850 for $ 1 ,230 , and line 3880 for $ 262 , 600 . - 6 - FINDINGS AND RECOMMENDATIONS 3 . Finding: Schedule 19 — requirement 17 — In our review of the final Schedule 19 Part A . 1 — Appropriation by School Committee in total was not in agreement with the Municipality ' s accounting ledgers . We noted that the amount was overstated by $ 96 ,266 . Per review of the School Department ' s accounting ledgers it was determined that operations and maintenance (line 7080 column 6 Undistributed) for $ 608 , 048 was overstated by $41 , 836 , and tuition to Mass Schools (line 7280 column 2 Special Education) for $251 , 049 was overstated by $ 54 ,430 . The operations and maintenance amount should have been $ 566 ,212 and the tuition to Mass Schools should have been $ 196, 619 . Criteria: Schedule 19 Part A . 1 — Appropriation by School Committee in total should be traceable to the Municipality ' s accounting ledgers . Recommendation : We recommend that the School Department ' s final Schedule 19 Part A . 1 Appropriation by School Committee total agree to the Municipality ' s accounting ledger. . Response: An amendment was done to Schedule 19 to change line 7080 , column 6 from $ 608 , 048 to $ 566 ,212 , and line 7280 , column 2 from $ 251 , 049 to $ 196 , 619 . i - 7 -