GADSDEN COUNTY DISTRICT SCHOOL BOARD

Financial and Federal Single Audit

Report No. 2017-189 March 2017

GADSDEN COUNTY DISTRICT SCHOOL BOARD

For the Fiscal Year Ended June 30, 2016

Sherrill F. Norman, CPA Auditor General

Board Members and Superintendent

During tthhee22001155-1-166fisficsaclayl eyaera, rR, eRgeingainldaCld. JCa.mJeasmseesrvseedrvaesdSauspeSriunpteenridnetennt doef nthteaGndadtshdeenfoClloowuinntgy iSncdhivoidoulsaalsnsdetrhveedfoalloswBinogaridndmiveidmubaelsrss: e0r1veGdaadssdSecnhoDoSl BBo6a-3rd0-M16emFAbePrsA:ttachment A.docm

AudrAeuydDre.yLDew. Lise, w, iCshtoair4-to301-116-1,a6-15 SteveCShcaoirttto 11-16-15 IsaaSctSevimemSocnostt, Jr., Vice Chair ChaIrslieaaDc.SFirmomst,oSnsr., Jr., Vice Chair RogCerhPar.liMeiDlto.nF,rCoshtair 11-17-15

Roger P. Milton, Chair from 11-17-15

DistDricisttrNicot.No. 1 1 2 2 3 3 4 4 5 5

a Board member resigned on 4-30-16, and position remained vacant through 6-30-16.

The Auditor General conducts audits of governmental entities to provide the Legislature, Florida's citizens, public entity management, and other stakeholders unbiased, timely, and relevant information for use in promoting government accountability and stewardship and improving government operations.

The team leader was Nicole W. Ostrowski, CPA, and the audit was supervised by Shelly G. Curti, CPA.

Please address inquiries regarding this report to Micah E. Rodgers, CPA, Audit Supervisor, by e-mail at micahrodgers@aud.state.fl.us or by telephone at (850) 412-2905.

This report and other reports prepared by the Auditor General are available at: audgen

Printed copies of our reports may be requested by contacting us at: State of Florida Auditor General

Claude Pepper Building, Suite G74 111 West Madison Street Tallahassee, FL 32399-1450 (850) 412-2722

GADSDEN COUNTY DISTRICT SCHOOL BOARD TABLE OF CONTENTS

Page No.

SUMMARY ...................................................................................................................................... i INDEPENDENT AUDITOR'S REPORT

Report on the Financial Statements ............................................................................................ 1 Other Reporting Required by Government Auditing Standards ................................................... 3 MANAGEMENT'S DISCUSSION AND ANALYSIS .......................................................................... 4 BASIC FINANCIAL STATEMENTS Statement of Net Position............................................................................................................ 11 Statement of Activities................................................................................................................. 12 Balance Sheet ? Governmental Funds ........................................................................................ 14 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................ 16 Statement of Revenues, Expenditures, and Changes in Fund Balances ? Governmental Funds ...................................................................................... 18 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities...................................................................................................... 20 Statement of Fiduciary Assets and Liabilities ? Fiduciary Funds ................................................. 21 Notes to Financial Statements..................................................................................................... 22 OTHER REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule ? General and Major Special Revenue Funds ........................ 50 Schedule of Funding Progress ? Other Postemployment Benefits Plan ...................................... 52 Schedule of the District's Proportionate Share of the Net Pension Liability ? Florida Retirement System Pension Plan .............................................................................................. 52 Schedule of District Contributions ? Florida Retirement System Pension Plan ............................ 52 Schedule of the District's Proportionate Share of the Net Pension Liability ? Health Insurance Subsidy Pension Plan ............................................................................................... 53 Schedule of District Contributions ? Health Insurance Subsidy Pension Plan.............................. 53 Notes to Required Supplementary Information ............................................................................ 53 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ........................................................... 56 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS............................................. 58

GADSDEN COUNTY DISTRICT SCHOOL BOARD TABLE OF CONTENTS (CONTINUED)

Page No.

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE ......................................................... 61 SCHEDULE OF FINDINGS AND QUESTIONED COSTS ............................................................... 64 PRIOR AUDIT FOLLOW-UP............................................................................................................ 73 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS................................................................... 73 CORRECTIVE ACTION PLAN......................................................................................................... 74

SUMMARY

SUMMARY OF REPORT ON FINANCIAL STATEMENTS

Our audit disclosed that the Gadsden County District School Board (District's) basic financial statements were presented fairly, in all material respects, in accordance with prescribed financial reporting standards.

SUMMARY OF REPORT ON INTERNAL CONTROL AND COMPLIANCE

We noted certain matters involving the District's internal control over financial reporting and its operation that we consider to be significant deficiencies, as summarized below. However, these significant deficiencies are not considered to be material weaknesses.

Significant Deficiencies Finding No. 2016-001: District financial reporting procedures continue to need improvement to ensure financial statement account balances and transactions and expenditures listed on the Schedule of Expenditures of Federal Awards are properly reported.

(Combination of Control Deficiencies in Financial Statement Finding Nos. 2016-002, 2016-003, and 2016-004) Finding No. 2016-002: District procedures did not effectively provide for:

Proper reconciliations of cash and cash equivalent account statement balances to the general ledger account balances with reconciling items thoroughly investigated and adequately identified and documented.

Timely adjustments to the general ledger cash and cash equivalent account balances based on the results of the reconciliations.

Appropriate supervisory review and approval of the account reconciliations to ensure that the reconciliations were properly performed.

Finding No. 2016-003: District controls over journal entries need improvement.

Finding No. 2016-004: District electronic funds transfer (EFT) agreements in effect during the 2015-16 fiscal year did not provide for an appropriate separation of duties as two individuals were authorized to make EFTs and could also change the bank account to which funds could be transferred.

The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards issued by the Comptroller General of the United States.

SUMMARY OF REPORT ON FEDERAL AWARDS

We audited the District's compliance with applicable Federal awards requirements. The Child Nutrition Cluster and Special Education Cluster programs were audited as major Federal programs. The results of our audit indicated that the District materially complied with the requirements that could have a direct and material effect on each of its major Federal programs.

Report No. 2017-189 March 2017

Page i

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download