SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA 31401

Transcription

1 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA September 22, 2013 Ms. Susan Ambrose, Principal Ms. Kimberly Newman, Former Principal Thunderbolt Elementary School 3313 Louis Street Savannah, GA Dear Ms. Ambrose and Ms. Newman, We have completed our Change-in-Principal Review for Thunderbolt Elementary School. The purpose of this letter is to document the results of that review and to identify actions that have already been taken or that will be taken in the future. Review Objectives The objectives of the review were to test internal controls for the business processes at Thunderbolt Elementary School, and to provide the principal with feedback on changes implemented as a result of the original internal control review to ensure that internal controls are working as expected. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Thunderbolt Elementary School: Payroll Purchasing and Accounts Payable Student Activity Funds Student Data Some transaction testing was performed during July 2013 using data available from the District s mainframe computer systems. This review was completed with site visits to the school on July 16, We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. 1

2 Background Ms. Susan Ambrose was appointed as (interim) principal at Thunderbolt Elementary School on July 1, This is her first assignment as a principal. She has been employed by SCCPSS for 11 years. The business processes at Thunderbolt Elementary School were last reviewed on February 10, Those results are not included in this report. The Secretary at Thunderbolt Elementary is responsible for the areas of Payroll, Purchasing and Accounts Payable, Student Activity Funds, and Purchase Cards. The Secretary has been assigned to this school for eight months. She has been employed by SCCPSS for eight months. The Information Specialist is responsible for the area of Student Data. The Information Specialist has been assigned to this school for four years and seven months. She has been employed by SCCPSS for 21 and one-half years. Results of Review and Opinion The results of our review are listed for each of the business processes on the attachment to this letter. In our opinion, these results show that internal controls need some improvements in the areas of Payroll, Purchasing and Accounts Payable, Student Activity Funds, and Student Data. We have also included information that you provided regarding the actions you have taken or will be taking to strengthen internal controls in each area. These actions should provide the necessary internal control improvements. Internal Audit will schedule additional site visits to determine if progress is made toward strengthening controls in these areas. We appreciate the assistance and support provided by the principal and the staff at Thunderbolt Elementary School in working with us to complete this Change-in-Principal Review. Sincerely, Kelly Crosby Senior Director, Internal Audit C: Board of Education Audit Committee Superintendent Chief of Staff Chief Financial Officer Chief Academic Officer Chief Data and Information Officer Chief of Campus Police Executive Director of Human Resources Interim Senior Director of Support Services Interim Executive Director of Facilities Management Executive Directors Manager of Public Information and Community Engagement 2

3 ATTACHMENT Thunderbolt Elementary School Change-in-Principal Review July, 2013 RESULTS OF REVIEW The results of our Change-in-Principal Review at Thunderbolt Elementary School are described below for each area we reviewed. Information that the Principal provided describing the actions that have been taken or will be taken are included in italics at the end of each section. PAYROLL We selected a sample of 10 leave transactions for review. We reviewed each leave slip, if available, for completeness. We compared the leave slip to the data entered in Kronos, the District s timekeeping system. We found the following issues which we consider High Risk: One leave slip was not located in the payroll documentation files. We found the following issues which we considered Low Risk: One leave slip did not contain the principal s signature. Properly completed leave slips that agree with payroll entries in Kronos are an important part of internal control because they provide the documentation to support those payroll entries. We selected a sample of employees from the Actual vs. Schedule report from Kronos. We compared the scheduled work time for one week to the actual work time; we determined the number of hours unaccounted for (if any) and looked for leave slips for those hours. We found the following issues which we consider High Risk: The classified employees did not have schedules entered in Kronos; therefore, we could not complete this portion of our review. Schedules in Kronos are designed to provide a management tool for monitoring their workforce. We conducted a review of all personal leave taken for SY From our review of personal time used, we found all transactions followed District guidelines. All leave slips, timecards and other payroll documentation should be sent to the Payroll Department for permanent storage. Copies of documentation may be retained at the school site, if desired, but must be maintained in a secure location and are subject to current record retention requirements. Work schedules are to be entered in Kronos to provide management a tool for monitoring their workforce. One leave slip was not located in the payroll documentation files. The Administrative Secretary will collect all completed leave slips in a central location in the front office. All staff members will turn them in daily to this location. Once the Principal approves the leave slip, the Administrative Secretary will make a copy of each leave slip per employee and place it in a file in the front office. This process will be completed each day. 3

4 One leave slip did not contain the principal s signature. The Administrative Secretary gives the completed leave sheets to the Principal to sign daily. No leave slip will be filed without the Principals signature. The Administrative Secretary is responsible for ensuring this process is followed by the employees daily and the Principal will supervise this to make sure it is completed. The classified employees did not have schedules entered in Kronos; therefore, we could not complete this portion of our review. The Administrative Secretary has completed the necessary schedules in Kronos for the classified staff for this school year. This was completed the day after this finding in this audit. This will be completed at before the staff return for the next school year each year. PURCHASING AND ACCOUNTS PAYABLE We selected 10 purchase orders for review. We compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. We found the following issues which we consider Medium Risk: One purchase order did not have a packing slip on file. We found the following issues which we consider Low Risk: One purchase order did not have a packing list with a signature and date to show who received the items and when they were received. Packing lists or similar documentation that include dates and signatures are an essential part of internal control because they provide evidence that the items were received, who had custody of the items, and that receivers were entered in the LEAFS system within the required time period. All packages should be routed to a single person for receiving purposes. This person should open the package, compare the contents to the packing list, then sign and date the packing list to create accountability for all items received. After the packing list is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. One purchase order did not have a packing slip on file. The Administrative Secretary will locate the packing slip from each order that is sent to Thunderbolt Elementary. She will take the packing slip and compare it to each item in the box to ensure we have received each item on the slip. The items are then sent to the appropriate location and the packing slip is filed with the purchasing documents. This process is followed each time an order is delivered to this school site. One purchase order did not have a packing list with a signature and date to show who received the items and when they were received. After reviewing the contents of each order, the Administrative Secretary will sign on the packing slip and date it to show which items were received. This process will be followed each time an order is delivered to the school site. 4

5 STUDENT ACTIVITY FUNDS Receipts We selected 10 receipt transactions for review. We reviewed the supporting documentation for accuracy and completeness. We found the following issues which we consider High Risk: Two Report of Monies Collected Forms could not be located. Complete documentation of receipts, including a Report of Monies Collected Form, supports the deposit of money into a specific fund. Completing the account (fund) name/number helps to ensure that money is deposited to the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Disbursements We selected 10 disbursement transactions for review. We reviewed the supporting documentation for accuracy and completeness. All transactions followed District guidelines.. Report of Monies Collected Forms should be completed entirely, including fund name/number, receipt numbers (or list of names and amounts collected, if under $5 each), total amount of money collected, reason for collection, and signature of the person submitting the funds. Two Report of Monies Collected Forms could not be located The Administrative Secretary will collect all receipts and deposits from the appropriate sponsor each day. A Report of Monies Collected Form will be completed at that time with the account number documented on this form. The receipt numbers or a list of names will be attached to this form each time. The Administrative Secretary will ensure the necessary signatures are on this form each time monies are turned in and collected from the sponsor. The Principal will oversee this process is followed daily. STUDENT DATA We selected 10 student discipline incidents for review. We compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned inschool or out-of-school suspension, we also checked the student s attendance data for those days. We found the following issues which we consider High Risk: One incident code on the DRF did not match PowerSchool. Two students attendance data in PowerSchool did not match the Disciplinary Referral Form. We found the following issues which we consider Low Risk: One Disciplinary Referral Form was not signed by the person entering the data in PowerSchool. Disciplinary Referral Forms are the basis for mandatory state reporting on disciplinary issues. Fully completing this form, including the referral code, signature of the person entering the information, and disposition of the incident, improves the reliability of the data entered into PowerSchool. Reliable data in the system is essential for effective use of student information, and for reliable reporting to the state. The data included on the Disciplinary Referral Form should be entered in PowerSchool accurately for the discipline incident to provide complete and reliable information for state and local reporting. Attendance data in PowerSchool should agree with the disposition data entered in PowerSchool 5

6 as reflected on the Disciplinary Referral Form for the discipline incident. Disciplinary Referral Forms should be signed by the person entering the incident in PowerSchool. One incident code on the DRF did not match PowerSchool. The Principal and/or the Assistant Principal will ensure each DRF has the appropriate incident code on each referral. The Information Specialist will also follow up daily with this process to ensure the incident codes match each time a DRF is entered into PowerSchool. Two students attendance data in PowerSchool did not match the Disciplinary Referral Form. The Principal will meet with the Information Specialist weekly to review any error reports that are sent from the district and correct any errors in attendance that do not match what was on the discipline referral. When a referral is processed by an administrator, the IS makes a copy for the Administrator, the teacher and the parent. The Administrator places the referral in a file in her office. 6