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HomeMy Public PortalAboutBrewster 2009 Public Schools Audit TOWN OF BREWSTER, MASSACHUSETTS BREWSTER PUBLIC SCHOOLS INDEPENDENT ACCOUNTANTS ' REPORT ON APPLYING AGREED-UPON PROCEDURES YEAR ENDED JUNE 309 2009 r TOWN OF BREWSTER, MASSACHUSETTS BREWSTER PUBLIC SCHOOLS JUNE 309 2009 CONTENTS PAGE Independent Accountants ' Report on Applying Agreed-Upon Procedures 1 Specific Compliance Requirements 2 - 4 Findings and Recommendations 5 - 6 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, 2009 , 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, 2009 . 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 is not intended to be and should not be used by anyone other than those specified parties . S. E. 33wwa &myan* Certified Public Accountants i June 2 , 2010 SPECIFIC COMPLIANCE REQUIREMENTS Schedule 1 - Revenue & Expenditure Summary I. Revenues A . Revenue from Local Sources Trace Revenues from Local Sources reported on Schedule 1 to the municipal and district accounting ledgers . Also, trace the revenues reported on district' s accounting ledgers to revenues reported on Schedule 1 . These amounts should agree . 1 . 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 . Also, trace the revenues reported on district's accounting ledgers to revenues reported on Schedule 1 . 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 . I. 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 . Also trace the expenditures reported on district's accounting ledgers to expenditures reported on Schedule 1 . 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 ESE functions (i . e . teaching, principal), State Objects (i .e . professional salaries (01 ), other salaries (02), and other expenditures (04-06) and ESE 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 . 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 . - 2 - r 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 or progress 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' 10 Special Education Tuition, verify prepaid tuition was not included as an FY' 09 expense. If the district prepaid FY'09 tuition from FY'08 , that amount should be included as an FY' 09 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 . Determine amounts reported in Column 1 by expenditure classification agree with filed Final Grant Expenditure reports for SFSF grants . b . Trace amounts claimed as Circuit Breaker expenses on line 3080 Column 5 to the Accounting ledgers or journals . i - 3 - Schedule 3 13 . For Schedule 3 expenditures : a. Trace the amounts reported by school location on the linked file to the accounting ledgers . These amounts should agree. b . 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. c . If allocations are used to assign staff salaries to schools, programs, functions or objects, was the allocation supported by a documented methodology? d . 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 . 17 . Determine if the district' s accounting system separates costs in order to facilitate reporting as outlined in Schedule 7 (In or Out of District, Pre-School, Non- Public, School Choice & Charter School) . Schedule 19 18 . Determine if the School District has reported all changes to Schedule 19 Part A . 1 - Appropriation by School Committee to the ESE. Compare the final School Committee Appropriation to Schedule 19 Part A . 1 as filed/amended to determine if all changes were reported. - 4 - i FINDINGS AND RECOMMENDATIONS 1 . 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 total School Committee expenditures per schedule 1 (line 1850) exceeded the Municipalities accounting ledger expenditures by $ 546 . Criteria: The total School Department expenditures as reported on Schedule 1 (line 1850) should agree to the Municipalities accounting ledger expenditures in total . Recommendation : We recommend that the School Department report the total expenditures as recorded on the Municipalities accounting ledger to the total expenditures by School Committee Schedule 1 (line 1850) . Response: Business Manager will investigate source of the $546 discrepancy. School Department will report total expenditures as recorded on the Municipalities account ledger. Business Manager will file amendment with DESS. 2 . 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 1 for a sample of DOE functions : specifically, Teachers, Classroom (2305) through Professional Development Stipends, Providers and Expenses (2357) to the detail in the Schools accounting ledgers is not in agreement. We noted that the Medical/Therapy salaries of $ 46,421 are reported in function (2315) Instructional Coordinators and Team Leaders as professional salaries special education (Line 1021 ) in error. This amount should have been reported in function (2320) Medical/Therapeutic Services as professional salaries special education (line 1041 ) . Criteria: The amounts reported for DOE functions in Schedule 1 should agree with the detail in the Schools 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: School Department will report expenditures as recorded in the schools detail accounting ledgers to the proper DOE functions per Schedule 1 . Business Manager will file amendment with DESS. - 5 - i FINDINGS AND RECOMMENDATIONS 3 . Finding: Schedule 19 — requirement 18 — The School Department did not report changes to the "A. 1 Appropriation by School Committee" section of Schedule 19 to the DOE . Additional Town funds of $43 ,250 were appropriated at the Special Town Meeting in May, 2010, for the purpose of funding various line items at the Stony Brook Elementary School . Criteria. Changes to the "A. 1 Appropriations by School Committee" section of Schedule 19 should be reported to the DOE within 30 days . Recommendation : We recommend that the School Department report all changes to the "A. 1 Appropriation by School Committee" section of Schedule 19 to the DOE within a timely manner in accordance with DOE guidelines . Response: School Department agrees with finding. School Department will report all changes / additions to Schedule 19 to DESS in a more timely manner. Business Manager filed an amendment with DESS. - 6 - i i i,