HomeMy Public PortalAboutDOE Agreed Upon Procedures Letter FY13 - Brewster Final
TOWN OF BREWSTER, MASSACHUSETTS
BREWSTER PUBLIC SCHOOLS
INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
YEAR ENDED JUNE 30, 2013
TOWN OF BREWSTER, MASSACHUSETTS
BREWSTER PUBLIC SCHOOLS
JUNE 30, 2013
CONTENTS
PAGE
Independent Accountants’ Report on Applying Agreed-Upon Procedures 1
Specific Compliance Requirements 2 – 5
Findings and Recommendations 6 – 8
R. E. BROWN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
P.O. Box 230 - 25 CEMETERY STREET
Mendon, Massachusetts 01756
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 Elementary and Secondary Education (the "Department") End-of-
Year Financial Report for the year ended June 30, 2013, 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 are responsible for the End-of-
Year Financial Report for the year ended June 30, 2013. 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 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.
R. E. Brown & Company
Certified Public Accountants
June 9, 2014
Phone: (508) 478-3941 Fax: (508) 478-1779
SPECIFIC COMPLIANCE REQUIREMENTS
Schedule 1 - Revenue & Expenditure Summary
I. Revenues
A. Revenue from Local Sources
1. 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.
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. Determine if the district verified the grant amounts
received with the detail posted on the DESE website and pre-
populated by DESE.
Note: Amounts deposited in legally authorized revolving accounts
(e.g. School Choice) cannot be transferred to the General Fund.
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. 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.
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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 ($150,000). 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. Determine if
the district reported Insurance for Retired Employees (5260)
separately and appropriately.
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 (8100) 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.
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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'14
Special Education Tuition, verify prepaid tuition was not included as
an FY'13 expense. If the district prepaid FY'13 tuition from FY'12,
that amount should be included as an FY'13 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 and Ed Jobs grants.
b. Trace amounts claimed as Circuit Breaker expenses on line
3080 Column 5 to the Accounting ledgers or journals.
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?
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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 and review the propriety of the
methodology. 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).
18. Determine if reimbursable expenditures claimed on Line 4283
(Homeless Transportation to Outside the District) and line 4285
(Homeless Transportation from Outside the District) are supported by
adequate documentation. If a cost allocation plan was used to
determine reimbursable expenditures, review the propriety of the plan
and test the expenditures reported.
Schedule 19
19. 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.
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FINDINGS AND RECOMMENDATIONS
1. Finding: Schedule 1 – requirement 1 – In our review of Schedule 1, Revenue from Local
Sources we noted that the amount reported on line 105 (non revenue receipts) column 5
should have been reported on line 100 (other revenue). Also the amount reported on line 105
was overstated by $241. Other revenue on line 100 should have been $1,229 not $1,470 as
reported on line 105.
Criteria: The amounts reported as Local Sources should agree to the detail in the Schools or
Municipality’s accounting ledgers.
Recommendation: We recommend that the School Department report all Local Sources as
recorded in the Schools or Municipality’s accounting ledgers.
Response: School District personnel will exercise due diligence to ensure the proper coding
of revenue amounts be reported on the proper lines in the End of Year Financial Report to the
correct revenue line items in future reporting in order to align with Municipality’s accounting
ledgers.
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FINDINGS AND RECOMMENDATIONS
2. Finding: Schedule 1 – requirement 2 – In our review of Schedule 1 School Department
Revenue for State Aid, Federal Grants, State Grants, and Revolving and Special funds to the
detail in the Schools or Municipality’s accounting ledgers, we noted the following:
• ESE Administered Federal Grants Revenue (line 300) column 5 (undistributed) for
the Race to the Top grant for $6,616 was not reported on Schedule 1 line 300 column
5. The Grant total amount for line 300 column 5 should have been $25,711 not
$19,095 as reported.
• Other State Grants Revenue (line 590) column 5 (undistributed) for the Big Yellow
School Bus Grant for $200 was also not reported on Schedule 1 line 590 column 5.
The Grant total amount for line 590 column 5 should have been $200 not $0 as
reported.
• Other Local Receipts Revenue (line 650) column 5 (undistributed) was understated
by $23,901. The Other Local Receipts total amount should have been $76,156 not
$52,255 as reported
Criteria: The amounts reported as State Aid, Federal Grants, State Grants, and Revolving
and Special funds in Schedule 1 should agree with the detail in the Schools or Municipality’s
accounting ledgers.
Recommendation: We recommend that the School Department report all State Aid, Federal
Grants, State Grants, and Revolving and Special funds as recorded in the Schools or
Municipality’s accounting ledgers.
Response: School District personnel will exercise due diligence to ensure the proper coding
of revenue amounts be reported on the proper lines in the End of Year Financial Report to
the correct revenue line items in future reporting in order to align with Municipality’s
accounting ledgers.
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FINDINGS AND RECOMMENDATIONS
3. Finding: Schedule 1 – requirement 10 – In our review of the Municipal expenditures
reported as Regional School Assessments (9500) line 2270 column 5 as compared to the
detail in the Municipality’s accounting ledger we noted that the amount was understated by
$105,411. The Regional School Assessment (9500) line 2270 column 5 should have been
$9,765,635 not $9,660,224 as reported.
Criteria: The amount to be reported for Regional School Assessment should agree to the
amount as recorded in the Municipality’s accounting ledger.
Recommendation: We recommend that the Municipality report all Regional School
Assessment as recorded in the Municipality’s accounting ledger on Schedule 1.
Response: Clerical error – the Town reported the capital assessment instead of the capital
costs expended. The Town will be diligent in reporting capital costs expended.
4. Finding: Schedule 1 – requirement 19 – In our review of Schedule 19 we noted that the
School Department did not report changes to the “A.1 Appropriation by School Committee”
section of Schedule 19 to the ESE. Additional Town Funds of $86,506 were appropriated
during Fiscal Year 2014.
Criteria: All Changes to the “A.1 Appropriation by School Committee” section of Schedule
19 should be reported to the ESE 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 ESE within a timely
manner in accordance with ESE guidelines.
Response: School District personnel will exercise due diligence to ensure that all changes to
the “A.1 Appropriation by School Committee section of Schedule 19” to ESE within a timely
manner in accordance with ESE guidelines.
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