(EDITOR'S NOTE: This article is a summary of audit findings. Exact figures and detailed descriptions of the findings are available by accessing the audit from the Georgia Department of Audits' website, where audit reports are available to the public at no charge.)
The McDuffie County Board of Education's annual audit report for the Fiscal Year (FY) 2009 was released the last week of September from the Georgia Department of Audits.
McDuffie County Schools Comptroller Tom Smalley discussed the report with members of the school board during a regular meeting. Although there were several findings and questioned costs, Mr. Smalley said he was happy with the final report.
"It says that we had no instances of noncompliance that were deemed to be material to the financial statements, and McDuffie County qualified as a low-risk auditee," Mr. Smalley said, quoting statements in the report.
FINDING ONE: CASH AND CASH EQUIVALENTS
In summary, this finding revealed weaknesses of reconciliation of funds not performed in a timely manner, band accounts not recorded, bank reconciliations not prepared, no administrative reviews to ensure required adjustments were made, unidentified variances for three accounts, supporting documentation not provided, and Crossroads Learning Center account was closed and deposited in contribution accounts.
The report revealed this is a repeat finding from FY 2008 and FY 2007.
"We have our audits done over a year after the fiscal year is complete," Mr. Smalley said. "So, if we have a finding, that finding is going to be for two years because it's for the year of the audit and the year we're in. It's just taking time to find it out."
Mr. Smalley said the "reconcile in a timely manner" part was a "software problem," and that the bank reconciliations are done monthly, they just weren't entered on the computer monthly.
In a response to the audit department, McDuffie School Superintendent Jim LeBrun said the school district would establish procedures to ensure all bank reconciliations are done in a timely manner, all bank accounts are recorded in the district's accounting records, and administrative reviews would be performed to determine all reconciliations and adjustments are correct.
Mr. Smalley said the problem was fixed as of June 30 of this year.
FINDING TWO: CAPITAL ASSETS
This also was a repeat finding from '08 and '07, for the same reason Mr. Smalley explained previously. The report revealed incorrect accumulated depreciations, capital assets deficiencies and improper listings that required "audit adjustments" of thousands of dollars, and one of $3 million.
"Instead of having it in the Fixed Asset column, we had it under Construction in Progress. But in the total amount, we're okay," Mr. Smalley said, adding that they now have a depreciation policy and have changed how things are entered on the computer, so the cause has been rectified.
FINDING THREE: FINANCIAL REPORTING
Auditors proposed entry corrections to properly present the system's financial statements in "Governmental funds and District-wide statements, Property tax revenue and cash and Retainage payable. The adjustments ranged from $200,000 to $840,000 each.
"The revenue was booked to revenue, so it did not show up in cash as an asset," Mr. Smalley explained. "So, adding it all up, we picked up $1 million. ... it was a computer glitch, but that was fixed. So, now we have $1 million that we didn't know we had."