Internal Audit Department Summary of Business Process Reviews School Year

Transcription

1 Internal Audit Department Summary of Business Process Reviews School Year

2 Table of Contents Page Number Executive Summary. pg. 1-2 Objectives, Scope, Methodology, and Background.. pg. 3-5 Summary of Findings.... pg. 6-7 Internal Control Review Results by Area.. pg Appendices Coastal Georgia Comprehensive Academy pg Coastal Middle School pg East Broad Street School. pg Charles Ellis Montessori Academy pg Garden City Elementary School. pg Esther F. Garrison School for the Arts.. pg Georgetown K8 School pg Hodge Elementary School. pg Isle of Hope K8 School.. pg Jenkins High School pg Massie Heritage Center.. pg Mercer Middle School.. pg Port Wentworth Elementary School.. pg Pulaski Elementary School. pg Rice Creek School. pg Shuman Elementary School.. pg West Chatham Elementary School.. pg White Bluff Elementary School. pg Williams Elementary School. pg Windsor Forest Elementary School... pg

3 Executive Summary The Internal Audit Department has completed Business Process Reviews at 20 schools/sites. The scope for the Business Process Review Reports was from August 15, 2017 June 30, School Name Area of Findings Percent of Transactions Total Findings (All Areas) Purchasing/ AP Error Rate SAF Error Rate Student Data Error Rate Purchase Cards Error Rate Coastal Georgia Comprehensive Academy 0 0% 0% 0% 0% Coastal Middle School 0 0% 0% 0% 0% East Broad Street School 18 0% 0% 60% NT Charles Ellis Montessori Academy 37 43% 30% 53% NT Garden City Elementary School 8 0% 20% 10% NT Garrison School for the Arts 18 0% 3% 40% 33% Georgetown K8 School 0 0% 0% 0% 0% Hodge Elementary School 32 10% 43% 50% 100% Isle of Hope K8 School 8 7% 13% 7% 0% Jenkins High School 11 10% 10% 17% NT Massie Heritage Center % 0% NT 0% Mercer Middle School 43 47% 47% 50% NT Port Wentworth Elementary School % 53% 59% 100% Pulaski Elementary School 5 7% 10% 0% 0% Rice Creek School 7 7% 10% 0% 100% Shuman Elementary School 14 17% 17% 14% NT West Chatham Elementary School 2 7% 0% 0% NT 1 P a g e

4 School Name Total Findings (All Areas) Purchasing/ AP Error Rate SAF Error Rate Student Data Error Rate Purchase Cards Error Rate White Bluff Elementary School 17 13% 13% 47% NT Williams Elementary School 17 30% 17% 13% 0% Windsor Forest Elementary School 5 7% 0% 10% 0% 317 NT = Not Tested A Summary of Review Findings for the current period for all schools in this report can be located on pages 6-7. Responses to these findings can be located in the Appendix section (pages 17-96). 2 P a g e

5 Objectives, Scope and Methodology The objectives of the reviews were to test internal controls for the business processes at designated schools, and to provide the principal with feedback on how to strengthen controls based on findings (initial review) or on changes implemented because of the original review. The scope of the reviews was dependent on the type of report conducted. For an initial report, the previous year data was tested to identify weaknesses in the internal controls from the previous leadership. A follow-up review is completed approximately one year after the initial review; it includes transactions completed after the initial review. The purpose of the follow-up review is to determine if changes were made to strengthen the internal control weaknesses originally identified. Additional follow-up reviews are conducted when the internal control environment at a school/site merits a needs improvement or inadequate rating (see page 6). Follow-up reviews are conducted periodically until the internal control environment is rated satisfactory. The procedures for the reviews included a review of written policies and procedures, and sampling transactions for compliance by reviewing supporting documentation and electronic records. Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. Background Business Process Reviews are conducted each time a principal is assigned to a different school. Selected business processes at the school are reviewed to assist the principal in determining if internal controls are functioning properly or if additional assistance is needed. Internal Audit may schedule Business Process Reviews at schools when the leadership has not changed. The goal is to review each school at least once every three years. This assures principals and Central Office administrators that internal controls continue to work as designed for new and established principals. Internal Control Questionnaire Internal controls help establish accountability and provide feedback to managers on whether operations are working as expected. Controls are not to identify individuals not following procedures, but rather a check to ensure that policies and procedures are being complied with. Because internal controls involve specific procedures for tasks, a system of internal controls should be a part of making the work smoother for all parties. Although some employees may feel that internal controls are restrictive, controls are actually tools to help ensure that organizational objectives are met. When internal controls are not functioning as intended, there is an increase in the risk of not meeting organizational objectives. Resources may be wasted as a result. Internal control failures often result in employees having to spend unnecessary time in order to correct a problem; they may also result in violations of law or regulations that jeopardize State, Federal, or other funds. They may also undermine the District s ability to serve its students. 3 P a g e

6 Everyone in an organization has some responsibility for internal controls, but an organization s leaders are ultimately responsible and must assume ownership of the internal controls for their area of responsibility. Internal Audit has developed a list of questions to assess the internal control environment in a school. When there is a change in principal at a school, it is particularly important to assess whether the internal controls for key business processes function as they should, and whether the internal control environment the attitude about internal controls at the school site is as strong as it should be. This assessment will help the leadership at the school site determine whether changes are needed in order to effectively manage the business processes. The Internal Auditor and the principal at the beginning of each initial Business Process Review complete the Internal Control Questionnaire (ICQ) jointly. Purchasing and Accounts Payable Board Policy DJE, Purchasing, controls the District purchasing process. The District s Purchasing Manual provides detailed procedures. The purchasing process is a combined effort from both the Central Office and the schools/sites. Items are requested or ordered by a school site; electronic approvals are obtained based on the dollar amount and funding source. Once all approvals are applied, the purchase order is generated and sent to the vendor. The items are then shipped to the school site, where the order is received and verified by the secretary. Electronic verification of the items received is to be entered in the District s Financial System (LEAFS) within 72 hours. Once an invoice is received and reviewed by the Accounts Payable Department, it is matched to the electronic receiving information and payment is made to the vendor. Student Activity Funds Student Activity Funds provide a school or site with the ability to collect funds and purchase items for school related functions. Student Activity Fund (SAF) procedures are outlined in the Student Activity Fund Handbook. The administrative secretary conducts the work processes at the school site. The Student Activity Fund Coordinator, in the Division of Finance, supports and monitors the schools or sites to ensure compliance with the District s policies and procedures. Funds may be collected by designated sponsors at each school and then given to the secretary. Each transaction is documented in the District s SAF computer program called SchoolCash.net; funds are then deposited into the bank. Check Request Forms are used to document each disbursement from the account. Student Data The Disciplinary Referral process is documented in the District s Student Data Accountability Procedures Manual. The process requires a teacher or administrator to complete the Disciplinary Referral Form. The completed form is given to the information specialist, who enters the information into the District s Student Information System, PowerSchool. The teacher enters the student s attendance into PowerSchool s teacher component, PowerTeacher. The information specialist is required to adjust the attendance in PowerSchool of any student who is absent from class due to a disciplinary action, such as inschool suspension, out of school suspension, etc. This information is reported annually to the Georgia Department of Education; it is also the basis for ad hoc reports used by the District and requested by community members throughout the year. 4 P a g e

7 Purchasing Cards The District s Purchasing Card Manual provides instructions for small purchases with a District-issued credit card, known as Purchasing Cards. Purchasing Cards may be issued to principals; each card is connected to a specific account line in a school s non-salary budget. The principal may request cards for more than one budget line. All transactions are recorded on a transaction log, with supporting documentation attached. On a monthly basis, the transaction log is reconciled with the bank statement at the school/site by the secretary. The Division of Finance is notified that the reconciliation is complete; the supporting documentation is maintained at the school/site. 5 P a g e

8 Summary of Findings School Total Per School Coastal Georgia Comprehensive Academy 0 None Area of Findings Coastal Middle School 0 None East Broad Street School 18 Student Data Charles Ellis Montessori Academy 37 Purchasing and Accounts Payable Student Activity Funds Student Data Garden City Elementary School 8 Student Activity Funds Student Data Garrison School for the Arts 18 Student Activity Funds Student Data Purchase Cards Georgetown K8 School 0 None Hodge Elementary School 32 Purchasing and Accounts Payable Student Activity Funds Student Data Purchase Cards Isle of Hope K8 School 8 Purchasing and Accounts Payable Student Activity Funds Student Data Jenkins High School 11 Purchasing and Accounts Payable Student Activity Funds Student Data Massie Heritage Center 10 Purchasing and Accounts Payable Mercer Middle School 43 Purchasing and Accounts Payable Student Activity Funds Student Data Port Wentworth Elementary School 65 Purchasing and Accounts Payable Student Activity Funds Student Data Purchase Cards Pulaski Elementary School 5 Purchasing and Accounts Payable Student Activity Funds 6 P a g e

9 School Total Per School Area of Findings Rice Creek School 7 Purchasing and Accounts Payable Student Activity Funds Purchase Cards Shuman Elementary School 14 Purchasing and Accounts Payable Student Activity Funds Purchase Cards West Chatham Elementary School 2 Purchasing and Accounts Payable White Bluff Elementary School 17 Purchasing and Accounts Payable Student Activity Funds Student Data Williams Elementary School 17 Purchasing and Accounts Payable Student Activity Funds Student Data Windsor Forest Elementary School 5 Purchasing and Accounts Payable Student Data Total P a g e

10 Internal Control Review Results by Area Internal Control Legend CRITERIA Policy & Procedures Compliance Information Risk (Student Data Only) Purchase Cards SATISFACTORY (0% - 19% Findings) In compliance Data is reliable Not likely to impact operations or program outcomes NEEDS IMPROVEMENT (20% - 39%) Non-compliance issues exist Data is mostly accurate but can be improved Moderate impact on operations or program outcomes INADEQUATE (40% and Higher) Non-compliance issues are significant or have severe consequences Data is incomplete or inaccurate Negative impact on operations or program outcomes 8 P a g e

11 School/Site Sample Size Coastal Georgia Comprehensive Academy 14 transactions Coastal Middle School 26 transactions East Broad Street School 30 transactions Charles Ellis Montessori Academy 30 transactions Garden City Elementary School 30 transactions Garrison School for the Arts 30 transactions Georgetown K8 School 30 transactions Hodge Elementary School 30 transactions Isle of Hope School 30 transactions Jenkins High School 30 transactions Massie Heritage Center 10 transactions Mercer Middle School 30 transactions SATISFACTORY (0 19% Findings) Purchasing and Accounts Payable Policy & Procedures Compliance NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) 0% - - 0% - - 0% % 0% - - 0% - - 0% % - - 7% - 10% % % Effect In compliance In compliance In compliance Non-compliance issues are significant or have severe consequences In compliance In compliance In compliance In compliance In compliance In compliance Non-compliance issues are significant or have severe consequences Non-compliance issues are significant or have severe consequences 9 P a g e

12 School/Site Sample Size Port Wentworth Elementary School 30 transactions Pulaski Elementary School 30 transactions Rice Creek School 30 transactions Shuman Elementary School 30 transactions West Chatham Elementary School 30 transactions White Bluff Elementary School 30 transactions Williams Elementary School 30 transactions Windsor Forest Elementary School 30 transactions SATISFACTORY (0 19% Findings) NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) % 7% - - 7% % - - 7% % % - 7% - - Effect Non-compliance issues are significant or have severe consequences In compliance In compliance In compliance In compliance In compliance Non-compliance issues exist In compliance The most common finding: Purchase Orders did not have receiver document with a signature and/or date to show items were received. 10 P a g e

13 School/Site Sample Size Coastal Georgia Comprehensive Academy 30 transactions Coastal Middle School 30 transactions East Broad Street School 30 transactions Charles Ellis Montessori Academy 30 transactions Garden City Elementary School 30 transactions Garrison School for the Arts 30 transactions Georgetown K8 School 30 transactions Hodge Elementary School 30 transactions Isle of Hope School 30 transactions Jenkins High School 30 transactions Massie Heritage Center 23 transactions Mercer Middle School 30 transactions SATISFACTORY (0 19% Findings) Student Activity Funds Policy & Procedures Compliance NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) 0% - - 0% - - 0% % % - 3% - - 0% % 13% % - 0% % Effect In compliance In compliance In compliance Non-compliance issues exist Non-compliance issues exist In compliance In compliance Non-compliance issues are significant or have severe consequences In compliance In compliance In compliance Non-compliance issues are significant or have severe consequences 11 P a g e

14 School/Site Sample Size Port Wentworth Elementary School 30 transactions Pulaski Elementary School 30 transactions Rice Creek School 30 transactions Shuman Elementary School 30 transactions West Chatham Elementary School 30 transactions White Bluff Elementary School 30 transactions Williams Elementary School 30 transactions Windsor Forest Elementary School 30 transactions SATISFACTORY (0 19% Findings) NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) % 10% % % - - 0% % % - - 0% - - Effect Non-compliance issues are significant or have severe consequences In compliance In compliance In compliance In compliance In compliance In compliance In compliance The most common finding: Entries into SchoolCash.net, the District s Student Activity Fund accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. 12 P a g e

15 School/Site Sample Size Coastal Georgia Comprehensive Academy 30 incidents Coastal Middle School 30 incidents East Broad Street School 30 incidents Charles Ellis Montessori Academy 26 incidents Garden City Elementary School 21 incidents Garrison School for the Arts 30 incidents Georgetown K8 School 30 incidents Hodge Elementary School 2 incidents Isle of Hope K8 School 30 incidents Jenkins High School 30 incidents Mercer Middle School 30 incidents SATISFACTORY (0 19% Findings) Student Data Information Risk NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) 0% - - 0% % % 10% % 0% % 7% - 17% % Effect Data is reliable Data is reliable Data is incomplete or inaccurate Data is incomplete or inaccurate Data is reliable Data is incomplete or inaccurate Data is reliable Data is incomplete or inaccurate Data is reliable Data is reliable Data is incomplete or inaccurate 13 P a g e

16 School/Site Sample Size Port Wentworth Elementary School 27 incidents Pulaski Elementary School 30 incidents Rice Creek School 30 incidents Shuman Elementary School 28 incidents West Chatham Elementary School 30 incidents White Bluff Elementary School 19 incidents Williams Elementary School 24 incidents Windsor Forest Elementary School 30 incidents SATISFACTORY (0 19% Findings) NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) % 0% - - 0% % - - 0% % 13% % - - Effect Data is incomplete or inaccurate Data is reliable Data is reliable Data is reliable Data is reliable Data is incomplete or inaccurate Data is reliable Data is reliable The most common finding: Information on the Disciplinary Referral Form did not match the data entry in PowerSchool. 14 P a g e

17 School/Site Sample Size Coastal Georgia Comprehensive Academy 2 transactions Coastal Middle School 15 transactions Garrison School for the Arts 15 transactions Georgetown K8 School 30 transactions Hodge Elementary School 15 transactions Isle of Hope School 15 transactions Massie Heritage Center 15 transactions Port Wentworth Elementary School 3 transactions SATISFACTORY (0 19% Findings) Purchase Cards Policy & Procedures Compliance NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) 0% - - 0% % - 0% % 0% - - 0% % Effect Not likely to impact operations or program outcomes Not likely to impact operations or program outcomes Moderate impact on operations or program outcomes Not likely to impact operations or program outcomes Negative impact on operations or program outcomes Not likely to impact operations or program outcomes Not likely to impact operations or program outcomes Negative impact on operations or program outcomes 15 P a g e

18 School/Site Sample Size Pulaski Elementary School 15 transactions Rice Creek School 2 transactions Windsor Forest Elementary School 11 transactions SATISFACTORY (0 19% Findings) NEEDS IMPROVEMENT (20% - 39%) INADEQUATE (40% and Higher) 0% % 0% - - Effect Not likely to impact operations or program outcomes Negative impact on operations or program outcomes Not likely to impact operations or program outcomes The most common finding: Purchase Card transactions did not have supporting documentation. 16 P a g e

19 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Steven Derr, Principal Coastal Georgia Comprehensive Academy 2001 Cynthia Street Savannah, GA Dear Mr. Derr, Internal Audit has completed a Business Process Review for Coastal Georgia Comprehensive Academy. 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 Coastal Georgia Comprehensive Academy, and to provide principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Coastal Georgia Comprehensive Academy: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 12, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 17 P a g e

20 Comparison of Reviews Internal Audit completed a review of business processes at Coastal Georgia Comprehensive Academy on the date shown in the table. There were no errors found. Area/Finding Error Rate Sept. 12, 2018 Review Purchasing and Accounts Payable 0% Student Activity Funds 0% Student Data 0% Purchase Cards 0% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit appreciates the assistance and support provided by the principal and the staff at Coastal Georgia Comprehensive Academy in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 18 P a g e

21 Coastal Georgia Comprehensive Academy Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Coastal Georgia Comprehensive Academy are described below for each area reviewed. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 14 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found all incidents followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. PURCHASE CARDS Internal Audit selected two purchase card transactions for review (all transactions within the scope of the review). The monthly reconciliations and supporting documentation were reviewed. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 19 P a g e

22 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Allison Schuster-Jones, Principal Coastal Middle School 4595 US Highway 80 East Savannah, GA Dear Ms. Schuster-Jones, Internal Audit has completed a Business Process Review for Coastal Middle 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 Coastal Middle School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Coastal Middle School: Purchasing and Accounts Payable, Student Activity Funds, Purchase Cards, and Student Data Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on July 24, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 20 P a g e

23 Comparison of Reviews Internal Audit completed a review of business processes at Coastal Middle School on the date shown in the table. There were no errors noted. July 24, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 0% Student Activity Funds 0% Student Data 0% Purchase Cards 0% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit appreciates the assistance and support provided by the principal and the staff at Coastal Middle School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 21 P a g e

24 Coastal Middle School Business Process Review July 2018 RESULTS OF REVIEW The results of the Business Process Review at Coastal Middle School are described below for each area reviewed. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 26 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found all incidents followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 22 P a g e

25 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Erica Swindell-Foster, Principal East Broad Street School 400 East Broad Street Savannah, GA Dear Ms. Swindell-Foster, Internal Audit has completed a Business Process Review for East Broad Street 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 East Broad Street School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at East Broad Street School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on August 6, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 23 P a g e

26 Comparison of Reviews Internal Audit completed a review of business processes at East Broad Street School on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Aug. 6, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 0% Student Activity Funds 0% Student Data 60% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at East Broad Street School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 24 P a g e

27 East Broad Street School Business Process Review August 2018 RESULTS OF REVIEW The results of the Business Process Review at East Broad Street School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date on two Disciplinary Referral Forms did not match the data entry in PowerSchool. Three student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log in PowerSchool. One Disciplinary Referral Form was not signed by the person entering the data in PowerSchool. Six Disciplinary Referral Forms did not have an incident code. Ten Disciplinary Referral Forms could not be located onsite for review. 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. 25 P a g e

28 Disciplinary Referral Forms should be fully completed, including the referral code, name of person making the referral, parent/guardian information, disposition of the incident, signature of the person entering the information, and signature of the person entering the data in order to provide complete and reliable information for state and local reporting. Disciplinary Referral Forms should be signed by the person entering the incident in PowerSchool. Actions Taken or To Be Taken The incident date on two Disciplinary Referral Forms did not match the data entry in PowerSchool. The actions that will be taken to ensure the data entry matches the incident date on the Disciplinary Referral Form is to weekly check log entries for accuracy of referrals submitted that week. Attendance data in PowerSchool should agree with the disposition data entered in PowerSchool as reflected on the Disciplinary Referral Form for the discipline incident. The actions that will be taken to ensure the attendance data entered in PowerSchool agrees with the Disciplinary Referral Form is to weekly check log entries for accuracy of referrals submitted that week. One Disciplinary Referral Form was not signed by the person entering the data in PowerSchool. The actions that will be taken to ensure the Disciplinary Referral Form is signed by the person entering the data is to review the referrals submitted that week and ensure the IS has signed. Six Disciplinary Referral Forms did not have an incident code. The actions that will be taken to ensure the Disciplinary Referral Form are correctly completed before being entered into Power School is a checks and balances system by having the IS, assistant principal, and principal check the referrals for completion. Ten Disciplinary Referral Forms could not be located onsite for review. Action to be taken to ensure all Disciplinary Forms are accounted for is the principal and assistant principal will create a notebook for office referrals as well as the information specialist creating folders for each student that was given a Disciplinary Referral Form. In addition to the actions that will be taken all recommendations will be followed through these processes. 26 P a g e

29 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Tanya Melville, Principal Charles Ellis Montessori Academy 220 East 49 th Street Savannah, GA Dear Ms. Melville, Internal Audit has completed a Business Process Review for Charles Ellis Montessori Academy. 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 Charles Ellis Montessori Academy, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Charles Ellis Montessori Academy: Purchasing and Accounts Payable, Student Activity Funds, and Student Data Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on August 17, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 27 P a g e

30 Comparison of Reviews Internal Audit completed a review of business processes at Charles Ellis Montessori Academy on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Aug. 17, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 43% Student Activity Funds 30% Student Data 53% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Charles Ellis Montessori Academy in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 28 P a g e

31 Charles Ellis Montessori Academy Business Process Review August 2018 RESULTS OF REVIEW The results of the Business Process Review at Charles Ellis Montessori Academy are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Eight packing slips could not be located onsite for review. One purchase order did not have a receiver document with a signature and/or date to show the items were received. Four purchase orders were not received in LEAFS within 72 hours, as required by the Purchasing Manual. 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. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District s Purchasing Manual, allows prompt payment to vendors. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual. Actions Taken or To Be Taken Training for new Administrative Secretary Running Record Sheet of Receivables to reflect item, destination, date of arrival, date of entry in portal, & signature STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Nine Check Request Forms were incomplete. They were missing the account balance or the person requesting the check. One of the 15 disbursement transactions did not have supporting documentation. 29 P a g e

32 Check requests are an important part of internal control. By completing the entire check request (including the checklist box), the SAF bookkeeper knows how to prepare the check, which fund number to use to generate the check, and can verify that the check is being requested in accordance with the Activity Charter. The fund balance on the check request assures the person approving the request that funds are available for use. Signatures of the person requesting the check, approving the check and printing the check establish accountability for the funds. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation(s): All check requests should be completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. Supporting documentation, such as an invoice or a receipt, should be attached to the check request. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form Actions Taken or To Be Taken Training for new Administrative Secretary Additional Training for SAF Sponsors Incomplete forms will be returned to the SAF sponsor before processing. STUDENT DATA Internal Audit selected 26 student discipline incidents for review (total incidents within the scope of our review). Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: Six Disciplinary Referral Forms could not be located onsite for review. Eight students attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log 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. Recommendation(s): Disciplinary Referral Forms should be fully completed, including the referral code, name of person making the referral, parent/guardian information, disposition of the incident, signature of the person entering the information, and signature of the person entering the data in order to provide complete and reliable information for state and local reporting. Attendance data in PowerSchool should agree with the disposition data entered in PowerSchool as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken Training for new Assistant Principal on district and school procedures for tracking and entering discipline data AP will keep separate running record of all disciplinary actions for monthly review Cross-check of discipline data at weekly attendance committee meeting to verify attendance record alignment. 30 P a g e

33 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Renae Miller-Mccullough, Principal Garden City Elementary School 4037 Kessler Avenue Garden City, GA Dear Ms. Miller-Mccullough, Internal Audit has completed a Business Process Review for Garden City 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 Garden City Elementary School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Garden City Elementary School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 18, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 31 P a g e

34 Comparison of Reviews Internal Audit completed a review of business processes at Garden City Elementary School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 18, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 0% Student Activity Funds 20% Student Data 10% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Garden City Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 32 P a g e

35 Garden City Elementary School Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Garden City Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Two Report of Monies Collected Forms were not located onsite. Three entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. Three deposits were not made within the same day after the funds were received by the sponsor. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One disbursement was for an item that was shipped to the address of an employee and not the school address. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Recommendation(s): 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. Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. 33 P a g e

36 Deposits should be made within the same day of receipts from sponsor. All items purchased for the purpose of use within the school site must be shipped to the school and not the address of an employee to ensure compliance with the Student Activity Fund Handbook and to reduce the risk of the misuse of the property. Actions Taken or To Be Taken As recommended, the school's secretaries will carefully review all Report of Monies Collected Forms to ensure the following: Forms are 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. Deposits will be entered in SchoolCash.net on the day funds are received by the bookkeepers. Deposits will be made within the same day of receipts from sponsor. All items purchased for the purpose of use within the school site will be shipped to the school and not the address of an employee to ensure compliance with the Student Activity Fund Handbook and to reduce the risk of the misuse of the property STUDENT DATA Internal Audit selected 21 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date/code on two Disciplinary Referral Forms did not match the data entry 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. Recommendation(s): 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. Actions Taken or To Be Taken As it relates to Student Data, the Information Specialist will ensure the following: Data included on the Disciplinary Referral Form will be entered in PowerSchool accurately for the discipline incident to provide complete and reliable information for state and local reporting. 34 P a g e

37 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA James Heater, Principal Ester F. Garrison School for the Arts 649 West Jones Street Savannah, GA Dear Mr. Heater, Internal Audit has completed a Business Process Review for Ester F. Garrison School for the Arts. 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 Ester F. Garrison School for the Arts, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Ester F. Garrison School for the Arts: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 4, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 35 P a g e

38 Comparison of Reviews Internal Audit completed a review of business processes at Ester F. Garrison School for the Arts on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 4, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 0% Student Activity Funds 3% Student Data 40% Purchase Cards 33% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Ester F. Garrison School for the Arts in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 36 P a g e

39 Ester F. Garrison School for the Arts Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Ester F. Garrison School for the Arts are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One Check Request Form could not be located on site. Check requests are an important part of internal control. By completing the entire check request (including the checklist box), the SAF bookkeeper knows how to prepare the check, which fund number to use to generate the check, and can verify that the check is being requested in accordance with the Activity Charter. The fund balance on the check request assures the person approving the request that funds are available for use. Signatures of the person requesting the check, approving the check and printing the check establish accountability for the funds. Recommendation(s): All check requests should be completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. Supporting documentation, such as an invoice or a receipt, should be attached to the check request. Actions Taken or To Be Taken Garrison has appointed a new Student Activity Fund book keeper. A meeting was held with administration and the SAF book keeper and discussed the procedures to be used to ensure all check requests have required supporting documentation prior to check being disbursed. Each quarter a review will be conducted by administration of the SAF check requests to ensure 100% compliance with required procedures. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date and/or consequence code on twelve Disciplinary Referral Forms did not match 37 P a g e

40 the data entry 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. Recommendation(s): 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. Actions Taken or To Be Taken A meeting was held with auditor, Garrison administration and Garrison Information Specialist Friday, September 7 th, 2018 to clarify the errors associated with the Discipline Referral Forms. At this time Information Specialist presented information presented from a September 2017 PowerPoint presentation to resolve the use of other for State or Local action codes. Administration and Information Specialist have conducted two separate conferences to ensure that what is on the Discipline Referral Form is what is entered in PowerSchool. Each quarter a review will be conducted by administration of the Discipline Referral Forms for the marking period to ensure 100% compliance with required procedures. PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found the following issues: Five purchase card transactions did not have supporting documentation. Receipts validate the amount of a transaction and the items that were purchased. This detail provides accountability of the funds to ensure the items purchased comply with District policies and procedures. Recommendation(s): Receipts from the cardholder should be presented along with the Transaction Log to the bookkeeper to validate the funds expended. Actions Taken or To Be Taken Training will be requested from district staff for the Administrative Secretary to ensure duties and responsibilities are known for purchase cards. Purchase cards are kept in the safe and will be signed out. Upon return the administrative secretary will ensure that all required documents have been returned after purchase card use, focusing on receipts for purchases. 38 P a g e

41 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Kelli Hamilton, Principal Georgetown K-8 School 1516 King George Blvd. Savannah, GA Dear Ms. Hamilton, Internal Audit has completed a Business Process Review for Georgetown K-8 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 Georgetown K-8 School and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Georgetown K-8 School: Purchasing and Accounts Payable, Student Activity Funds Student Data Purchase Cards Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on July 17, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 39 P a g e

42 Comparison of Reviews Internal Audit completed a review of business processes at Georgetown K-8 School on the date shown in the table. There were no errors noted. July 17, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 0% Student Activity Funds 0% Student Data 0% Purchase Cards 0% Results of Review and Opinion Internal Audit appreciates the assistance and support provided by the principal and the staff at Georgetown K-8 School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 40 P a g e

43 Georgetown K-8 School Business Process Review July 2018 RESULTS OF REVIEW The results of the Business Process Review at Georgetown K-8 School are described below for each area reviewed. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found all incidents followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 41 P a g e

44 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Yvette Wells, Principal Hodge Elementary School 975 Clinch Street Savannah, GA Dear Dr. Wells, Internal Audit has completed a Business Process Review for Hodge 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 Hodge Elementary School, and to provide principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Hodge Elementary School: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 19, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 42 P a g e

45 Comparison of Reviews Internal Audit completed a review of business processes at Hodge Elementary School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 19, Area/Finding 2018 Review Error Rate Purchasing and Accounts Payable 10% Student Activity Funds 43% Student Data 50% Purchase Cards 100% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Hodge Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 43 P a g e

46 Hodge Elementary School Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Hodge Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Three packing slips could not be located onsite for review. 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. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Actions Taken or To Be Taken The secretary will take action as recommended. She will receive all packages, compare contents and receive all items in a timely manner. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One Report of Monies Collected Form was incomplete. It was missing the account name. Eight entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. Six deposits were not made within the same day after the funds were received by the sponsor. One deposit was not turned in to the bookkeeper on the day the money was collected, as required by the SAF Handbook. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One of the 15 disbursement transactions did not have supporting documentation. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. 44 P a g e

47 Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Funds collected by sponsors should be turned in to the bookkeeper on a daily basis. This process ensures security and accountability of the funds collected. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation(s) 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. Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Deposits should be made within the same day of receipt. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. Actions Taken or To Be Taken Secretary and Administrative secretary will follow all recommendations as listed and reiterate to staff the money collection process. STUDENT DATA Internal Audit selected two student discipline incidents for review (total number of incidents within the scope of the review). Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident code on one Disciplinary Referral Form did not match the data entry in PowerSchool. One student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken IS will enter Power School data accurately and as reflected on the Disciplinary Referral Form for the discipline incident. 45 P a g e

48 PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found the following issues: All transactions did not have a completed Transaction Log Form on file. Therefore, we could not validate if the reconciliation was completed correctly. The reconciliation process is an important control that serves to validate the proper use of purchase cards. This is completed by comparing the bank statements to the information documented on the Transaction Log Form. Recommendation(s): The reconciliation process should be completed on a monthly basis as outlined in the District s Purchase Card Handbook. Actions Taken or To Be Taken All recommendations are now being implemented and log is being used. 46 P a g e

49 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Lawrence Butler, Principal Isle of Hope School 100 Parkersburg Road Savannah, GA Dear Mr. Butler, Internal Audit has completed a Business Process Review for Isle of Hope 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 Isle of Hope School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Isle of Hope School: Purchasing and Accounts Payable, Student Activity Funds, Purchase Cards, and Student Data Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on July 25, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 47 P a g e

50 Comparison of Reviews Internal Audit completed a review of business processes at Isle of Hope School on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. July 25, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 7% Student Activity Funds 13% Student Data 7% Purchase Cards 0% Results of Review and Opinion Internal Audit has also included information that the administration provided regarding the actions taken or to be taken to strengthen internal controls in each area. These actions should provide the necessary internal control improvements. Internal Audit appreciates the assistance and support provided by the principal and the staff at Isle of Hope School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 48 P a g e

51 Isle of Hope School Business Process Review July 2018 RESULTS OF REVIEW The results of the Business Process Review at Isle of Hope School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE We selected 30 purchase orders for review. The documentation at the school site was compared to the information in LEAFS, the District s financial accounting system. Internal Audit found the following: Two purchase orders were not received in LEAFS within 72 hours, as required by the Purchasing Manual. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District s Purchasing Manual, allows prompt payment to vendors. Recommendation(s): Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual. Actions Taken or To Be Taken On a normal basis, Receivers are entered in the time frame as directed by the District. The District policy also states that receivers are not to be placed on a purchase order if the items are not in the building. There may be several days from the time of the first shipment that contains part of an order to the day that the remainder of an order has been delivered to the site. In such cases, we will provide additional documentation to explain with details as to why there was a delay in entering a receiver; otherwise, we will also enter receivers within 72 hours. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Two entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. The receipts supporting one Report of Monies Collected Form were incomplete. It was missing the tally sheet for the concession sale. One deposit was not made within 24 hours after the funds were received by the bookkeeper. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. 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 49 P a g e

52 deposited in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Recommendation(s): Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. Deposits should be made within 24 hours of receipt Actions Taken or To Be Taken Deposits are made once a day according to SAF requirements. If a sponsor submit funds after the daily deposit has been made, it is noted on the Monies Collected form and then entered for deposit the next business day. With the new 3 part receipt system in place, sponsors are attaching receipts to the Monies Collected form when submitting funds for deposit. We have a system in place where the deposit is made daily before 2:00pm in the afternoon. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date on one Disciplinary Referral Form did not match the data entry in PowerSchool. One student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken Ensure all data on the discipline referral form is completed before entering in PowerSchool. If not completed, return to the reporter so they can complete the form. This includes the incident date box, as that is sometimes left blank if the date of the write up occurred on the same date as the incident. Enter the attendance data (ISS/OSS) before entering the data on the Log Entry page. This will help ensure that attendance data is accurate and not overlooked after entering the referral in PowerSchool. PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found all transactions follow District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 50 P a g e

53 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Heather Handy, Principal Jenkins High School 1800 East DeRenne Avenue Savannah, GA Dear Ms. Handy, Internal Audit has completed a Business Process Review for Jenkins High 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 Jenkins High School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Jenkins High School: Purchasing and Accounts Payable, Student Activity Funds, Student Data. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 25, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 51 P a g e

54 Comparison of Reviews Internal Audit completed a review of business processes at Jenkins High School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 25, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 10% Student Activity Funds 10% Student Data 17% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken to strengthen internal controls in each area. These actions should provide the necessary internal control improvements. Internal Audit appreciates the assistance and support provided by the principal and the staff at Jenkins High School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 52 P a g e

55 Jenkins High School Business Process Review October 2018 RESULTS OF REVIEW The results of the Business Process Review at Jenkins High School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Two purchase orders did not have a receiver document with a signature and/or date to show the items were received. One packing slip could not be located onsite for review. One purchase order was not entered until after the goods were received by the school site. One purchase order was not received in LEAFS within 72 hours, as required by the Purchasing Manual. 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. Purchase orders use a standard approval process, creating an effective internal control. Ordering items/goods prior to completing a purchase order weakens the established controls. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District s Purchasing Manual, allows prompt payment to vendors. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Items should not be ordered prior to the completion of a purchase order. Following the established purchase order process helps to ensure the application of internal controls to purchasing transactions. Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual. Actions Taken or To Be Taken Jenkins High School will ensure that all packages are routed through one person. We will also make sure we follow the correct completion order for all purchase orders. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: The receipts for one Report of Monies Collected Form could not be located onsite. One deposit was not made within the same date that the funds were received by the sponsor. 53 P a g e

56 Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One Check Request Form was incomplete. It was missing the account name. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Check requests are an important part of internal control. By completing the entire check request (including the checklist box), the SAF bookkeeper knows how to prepare the check, which fund number to use to generate the check, and can verify that the check is being requested in accordance with the Activity Charter. The fund balance on the check request assures the person approving the request that funds are available for use. Signatures of the person requesting the check, approving the check and printing the check establish accountability for the funds. Recommendation(s) Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. Deposits should be made within the same day of receipt. All check requests should be completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. Supporting documentation, such as an invoice or a receipt, should be attached to the check request. Actions Taken or To Be Taken Jenkins High School will ensure that all monies are collected within 24 hours of collection of funds. Principal and financial bookkeeper will review process through an additional training session. An initial training session was conducted with all SAF sponsors during pre-planning. We will review the procedures with the faculty and staff. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date on three Disciplinary Referral Forms did not match the data entry in PowerSchool. One Disciplinary Referral Form could not be located onsite for review. Two student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log 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 54 P a g e

57 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken Jenkins High School will ensure all data on the Discipline Referral Form is entered in Power School correctly. Principal and attendance clerk will check for accuracy of attendance data entered to reflect the information on the Disciplinary Referral Form. 55 P a g e

58 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Stephen Smith, Curator Massie Heritage Center 207 East Gordon Street Savannah, GA Dear Mr. Smith, Internal Audit has completed a Business Process Review for Massie Heritage Center. 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 Massie Heritage Center, and to provide the curator with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Massie Heritage Center: Purchasing and Accounts Payable, Student Activity Funds, and Purchase Cards Some transaction testing was performed during July 2017 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on August 7, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 56 P a g e

59 Comparison of Reviews Internal Audit completed a review of business processes at Massie Heritage Center on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Aug. 7, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 100% Student Activity Funds 0% Purchase Cards 0% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the curator and the staff at Massie Heritage Center in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 57 P a g e

60 Massie Heritage Center Business Process Review August 2018 RESULTS OF REVIEW The results of the Business Process Review at Massie Heritage Center are described below for each area reviewed. Information that the curator provided describing the actions that have been taken or will be taken are included in italics at the end of each section. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 10 purchase orders for review (all transactions within the scope of the audit). Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Ten purchase orders did not have a receiver document with a signature and/or date to show the items 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. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Actions Taken or To Be Taken All staff has been notified that all packages are to be routed immediately to secretary for opening, processing and inspection. Receivers will be completed within 48 hours after she has received the package. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected eight receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 58 P a g e

61 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Christian Pantin, Principal Mercer Middle School 2001 Rommel Avenue Savannah, GA Dear Dr. Pantin, Internal Audit has completed a Business Process Review for Mercer Middle 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 Mercer Middle School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Mercer Middle School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 17, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 59 P a g e

62 Comparison of Reviews Internal Audit completed a review of business processes at Mercer Middle School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 17, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 47% Student Activity Funds 47% Student Data 50% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Mercer Middle School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 60 P a g e

63 Mercer Middle School Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Mercer Middle School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Six purchase orders did not have a receiver document with a signature and/or date to show the items were received. Six packing slips could not be located onsite for review. One purchase order was not entered until after the goods were received by the school site. Three purchase orders were not received in LEAFS within 72 hours, as required by the Purchasing Manual. 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. Purchase orders use a standard approval process, creating an effective internal control. Ordering items/goods prior to completing a purchase order weakens the established controls. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District s Purchasing Manual, allows prompt payment to vendors. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Items should not be ordered prior to the completion of a purchase order. Following the established purchase order process helps to ensure the application of internal controls to purchasing transactions. Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual. Actions Taken or To Be Taken On the afternoon of September 17, 2018, I conducted a debrief meeting with my Bookkeeper to ensure that the receipt of packages process implemented on December 7, 2017, was consistently executed. A modified system to increase accountability for all items received was reviewed and an increased focus on the consistent implementation of this system has been conducted to ensure proper procedures are followed on a regular basis. On the receipt of packages, as of September 17, 2018, I have conducted unannounced observations to ensure that the proper procedure is executed prior to distribution to the appropriate personnel. 61 P a g e

64 An accountability system in terms of a notebook binder detailing all purchasing and accounts payable documents is monitored twice per week. This is to ensure that all Purchasing and Accounts Payable procedures are implemented and all receiving information is accurately entered in LEAFS within the required 72 hour timeframe. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Four Report of Monies Collected Forms were not located on-site. The receipts supporting one Report of Monies Collected Form were missing. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Four Check Request Forms were incomplete. They were missing the account balance, fund name, and/or the name of the person requesting the check. Two Check Request Forms could not be located onsite to support the disbursement of the check. Three of the 15 disbursement transactions did not have supporting documentation. One disbursement was for an item that was shipped to the address of an employee and not the school address. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Check requests are an important part of internal control. By completing the entire check request (including the checklist box), the SAF bookkeeper knows how to prepare the check, which fund number to use to generate the check, and can verify that the check is being requested in accordance with the Activity Charter. The fund balance on the check request assures the person approving the request that funds are available for use. Signatures of the person requesting the check, approving the check and printing the check establish accountability for the funds. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation(s): 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. Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. All check requests should be completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. Supporting documentation, such as an invoice or a receipt, should be attached to the check request. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. All items purchased for the purpose of use within the school site must be shipped to the school and not the address of an employee to ensure compliance with the Student Activity Fund Handbook and to reduce the risk of the misuse of the property. 62 P a g e

65 Actions Taken or To Be Taken On the afternoon of September 17, 2018, I conducted a debrief meeting with my Bookkeeper to ensure that all findings pertaining to our financial transactions were reviewed. A modified system to increase accountability for all financial transactions was reviewed and an increased focus on the consistent implementation of this system has been conducted to ensure proper procedures are followed on a regular basis. The Bookkeeper conducted additional training on Financial Procedures with all staff members (sponsors) associated with SAF accounts to ensure compliance with the Student Activity Fund Handbook and to reduce the risk of the misuse of the property. An accountability system on monitoring consistency of practice pertaining to procedures for check requests and report of monies collected are monitored twice per week. This is to ensure that all Student Activity Fund procedures are implemented and all check requests are completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident code on 10 Disciplinary Referral Forms did not match the data entry in PowerSchool. Three Disciplinary Referral Forms could not be located on site. Three student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken On the afternoon of September 17, 2018, I conducted a debrief meeting with my Information Specialist to ensure that all findings pertaining to our Student Data were reviewed. A modified system to increase accountability for all reporting of student attendance and discipline data was reviewed and an increased focus on the consistent and accurate entry of students discipline data from students completed Disciplinary Referral Forms was implemented. The filing system of student discipline data was discussed and a modified process was created and implemented for filing of all students discipline records. A Do Not Admit list communication detailing a list of students who received ISS and OSS consequences with the date range is released to staff. This Do Not Admit List is used to conduct cross-reference checks with the student disciplinary referral forms, the PowerSchool Log Entry database and the PowerSchool Student Attendance. This system has been implemented to ensure accurate entry of students discipline and attendance data from students completed Disciplinary Referral Forms on a regular basis. An accountability system on monitoring consistency of practice pertaining to accurate entry of students discipline and attendance data from students completed Disciplinary Referral Forms are monitored twice per week. This is to ensure that all reporting of student attendance and discipline data is conducted in a timely and accurate manner. 63 P a g e

66 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Tamika M. Wright, Principal Port Wentworth Elementary School 507 South Coastal Highway Port Wentworth, GA Dear Dr. Wright, Internal Audit has completed a Business Process Review for Port Wentworth 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 Port Wentworth Elementary School, and provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Port Wentworth Elementary School: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 11, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 64 P a g e

67 Comparison of Reviews Internal Audit completed a review of business processes at Port Wentworth Elementary School on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 11, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 100% Student Activity Funds 53% Student Data 59% Purchase Cards 100% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Port Wentworth Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 65 P a g e

68 Port Wentworth Elementary School Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Port Wentworth Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Twenty-five purchase orders did not have a receiver document with a signature and/or date to show the items were received. Five packing slips could not be located onsite for review. 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. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Actions Taken or To Be Taken: Administrative Secretary will sign for and receive all packages that enter the building; She will open the packages and verify the contents and sign off on the packing list prior to entering a receiver in the system; She will also staple all slips to the original order so that all items are present for audit purposes; Once storing the materials for the following year all boxes will be labeled separately to make things easier to find during the audit. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Seven Report of Monies Collected Forms were not located on-site. One Report of Monies Collected Form was incomplete. It was missing the name of the person submitting the funds. The receipts supporting one Report of Monies Collected Form were missing. Two entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. One deposit was not made within the same day after the funds were received by the sponsor. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Two Check Request Forms could not be located onsite for review. Two Check Request Forms were incomplete. They were missing the fund balance and/or the name 66 P a g e

69 of the person requesting the check. Two of the 15 disbursement transactions did not have supporting documentation. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Check requests are an important part of internal control. By completing the entire check request (including the checklist box), the SAF bookkeeper knows how to prepare the check, which fund number to use to generate the check, and can verify that the check is being requested in accordance with the Activity Charter. The fund balance on the check request assures the person approving the request that funds are available for use. Signatures of the person requesting the check, approving the check and printing the check establish accountability for the funds. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation(s) 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. Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Deposits should be made within the same day of receipt of funds. All check requests should be completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. Supporting documentation, such as an invoice or a receipt, should be attached to the check request. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. Actions Taken or To Be Taken Administrative Secretary will store and account for all SAF paperwork so that they will be easily accessible for the audit team; She will check twice to be sure all signatures are obtained and in the necessary place for documentation purposes; All deposits will be made on the date of the form submitted so that there are no date discrepancies found; She will be sure all check requests are properly complete and filled out to match the check being paid; The report of monies forms will be double checked to be sure all areas are complete and match the deposit. STUDENT DATA Internal Audit selected 27 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student 67 P a g e

70 was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date and/or behavior code on six Disciplinary Referral Forms did not match the data entry in PowerSchool. Eight student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log in PowerSchool. Four Disciplinary Referrals Forms were not entered into PowerSchool to document the Disciplinary actions of the student and school site. 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken The Information Specialist will be entering all disciplinary referrals; Any referral entered will be filed and attendance will be marked to coincide with the referral. PURCHASE CARDS Internal Audit selected three purchase card transactions for review (total transactions within the scope of the review). The monthly reconciliations and supporting documentation were reviewed. Internal Audit found the following issues: One monthly reconciliation was not completed within the 10 days allowed by the Purchase Card Handbook. Two monthly reconciliations did not have the authorized signature for approval of the reconciliations on the Transaction Log. The reconciliation process is an important control that serves to validate the proper use of purchase cards. Recommendation(s): The reconciliation process should be completed and approved on a monthly basis as outlined in the District s Purchase Card Handbook. Actions Taken or To Be Taken Administrative Secretary will complete all purchase card reconciliation reports within the allowed ten days to be sure the card and receipts match the purchase; Also principal will sign off on report once the Administrative Secretary completes the reconcile. 68 P a g e

71 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Antonio Byrd, Principal Pulaski Elementary School 1001 Tibet Avenue Savannah, GA Dear Mr. Byrd, Internal Audit has completed a Business Process Review for Pulaski 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 Pulaski Elementary School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Pulaski Elementary School: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on July 23, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 69 P a g e

72 Comparison of Reviews Internal Audit completed a review of business processes at Pulaski Elementary School on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Jul. 23, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 7% Student Activity Funds 10% Student Data 0% Purchase Cards 0% Results of Review and Opinion Internal Audit has also included information that the administration provided regarding the actions taken or to be taken to strengthen internal controls in each area. These actions should provide the necessary internal control improvements. Internal Audit appreciates the assistance and support provided by the principal and the staff at Pulaski Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 70 P a g e

73 Pulaski Elementary School Business Process Review July 2018 RESULTS OF REVIEW The results of the Business Process Review at Pulaski Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: One purchase order was not created until after the goods were received by the school site. One purchase order was not received in LEAFS within 72 hours, as required by the Purchasing Manual. Purchase orders use a standard approval process, creating an effective internal control. Ordering items/goods prior to completing a purchase order weakens the established controls. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District s Purchasing Manual, allows prompt payment to vendors. Recommendation(s): Items should not be ordered prior to the completion of a purchase order. Following the established purchase order process helps to ensure the application of internal controls to purchasing transactions. Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual. Actions Taken or To Be Taken: When ordering name badges in the future, we will complete the purchase order prior to receiving the badges at the school site. Principal and bookkeeper will work together to ensure that receivers are completed in no more than 3 days (seventy-two hours). STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One entry into SchoolCash.net, the District s SAF accounting system, was not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. The receipts supporting one Report of Monies Collected Form was missing. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One of the 15 disbursement transactions did not have supporting documentation. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish 71 P a g e

74 accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. Actions Taken or To Be Taken: Principal and bookkeeper will work together to ensure that deposits are entered into School Cash on the actual date of receipt at Port Wentworth Principal and bookkeeper will work together to ensure that deposits are entered with the receipts attached Principal and bookkeeper will work together to ensure that checks will be processed with the official invoices. (Note has been added to our internal form as well.) STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. PURCHASE CARDS Internal Audit selected 15 purchase card transactions for review. The monthly reconciliations and supporting documentation were reviewed. Internal Audit found all transactions followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 72 P a g e

75 John Sutlive, Principal Rice Creek School 100 Mulberry Avenue Port Wentworth, GA Dear Mr. Sutlive, SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Internal Audit has completed a Business Process Review for Rice Creek 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 Rice Creek School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes Rice Creek School: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on October 2, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 73 P a g e

76 Comparison of Reviews Internal Audit completed a review of business processes at Rice Creek School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Oct. 2, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 7% Student Activity Funds 10% Student Data 0% Purchase Cards 100% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Rice Creek School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 74 P a g e

77 Rice Creek School Business Process Review October 2018 RESULTS OF REVIEW The results of the Business Process Review at Rice Creek School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: One purchase order did not have a receiver document with a signature and/or date to show the items were received. One packing slip could not be located onsite for review. 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. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Actions Taken or To Be Taken The Administrative Secretary will be the sole receiver of purchase orders. She will then open the package, compare the packing list to the contents, then sign and date the packing list with the date the items were received. Administrative Secretary will then enter the receiver into the LEAFs system, and distribute the items as necessary. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Two entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. Two deposits were not made within the same day the funds were received by the sponsor. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One Check Request Form was incomplete. It was missing the fund balance. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. 75 P a g e

78 Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Check requests are an important part of internal control. By completing the entire check request (including the checklist box), the SAF bookkeeper knows how to prepare the check, which fund number to use to generate the check, and can verify that the check is being requested in accordance with the Activity Charter. The fund balance on the check request assures the person approving the request that funds are available for use. Signatures of the person requesting the check, approving the check and printing the check establish accountability for the funds. Recommendation(s) Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Deposits should be made within the same day of receipt. All check requests should be completed prior to printing a check, including fund name/number, fund balance, checklist box, and purpose of the check. Supporting documentation, such as an invoice or a receipt, should be attached to the check request. Actions Taken or To Be Taken The deposit in question was addressed by the prior principal and the sponsor to ensure that it would no longer be an issue. Going forward, the Administrative Secretary as well as the back up will ensure that all monies collected will be deposited the same day as receipt. In addition, the Administrative Secretary will ensure that all proper supporting documentation is attached to check request, and that the check request is fully complete, to include fund name, fund balance, checklist box, and purpose of the check. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found all incidents followed District guidelines. Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. PURCHASE CARDS Internal Audit selected two purchase card transactions for review (total within scope of review). The monthly reconciliations and supporting documentation were reviewed. Internal Audit found the following issues: All transactions did not have a Transaction Log Form on file to validate reconciliation. The reconciliation process is an important control that serves to validate the proper use of purchase cards. Recommendation(s): The reconciliation process should be completed on a monthly basis as outlined in the District s Purchase Card Handbook. Actions Taken or To Be Taken Current Principal and Administrative secretary will attend training to secure purchasing card in order to be properly trained on procedures relating to purchasing card. 76 P a g e

79 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Evanita Wallace-Lewis, Principal Shuman Elementary School 415 Goebel Avenue Savannah, GA Dear Ms. Wallace-Lewis, Internal Audit has completed a Business Process Review for Shuman 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 Shuman Elementary School and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Shuman Elementary School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 6, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 77 P a g e

80 Comparison of Reviews Internal Audit completed a review of business processes at Shuman Elementary School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Sept. 6, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 17% Student Activity Funds 17% Student Data 14% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken to strengthen internal controls in each area. These actions should provide the necessary internal control improvements. Internal Audit appreciates the assistance and support provided by the principal and the staff at Shuman Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 78 P a g e

81 Shuman Elementary School Business Process Review September 2018 RESULTS OF REVIEW The results of the Business Process Review at Shuman Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Three purchase orders did not have a receiver document with a signature and/or date to show the items were received. Two packing slips could not be located onsite for review. 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. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Actions Taken or To Be Taken My bookkeeper will ensure all packages are reviewed, documented and entered into the LEAFS as required by Purchasing Manual. In addition, I have reviewed this information and will send my bookkeeper s backup for additional training in this area. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Three entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. Three deposits were not made within the same day after the funds were received by the sponsor. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: One of the 15 disbursement transactions did not have supporting documentation. One Check Request Form was incomplete. It was missing the purpose. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. 79 P a g e

82 Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation(s): Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Deposits should be made within the same day of receipt. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. Actions Taken or To Be Taken Each day we collect the money the bookkeeper will document on an internal log what is received, entered into SchoolCash.net, and deposited in the bank (this include dollar amount and dates). As principal, I will review this information weekly to ensure compliance with procedures. STUDENT DATA Internal Audit selected 28 student discipline incidents for review (total incidents within the scope of the review). Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date on three Disciplinary Referral Forms did not match the data entry in PowerSchool. One student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log 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. Recommendation(s): 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 as reflected on the Disciplinary Referral Form for the discipline incident. Actions Taken or To Be Taken The Principal will ensure that the IS reviews the procedures for data entry of discipline referrals so that the information entered into the system is accurate and complete. The Principal will ensure that teachers are taking attendance accurately to reflect student attendance for the day. Secondly, the Principal will ensure that the IS reviews student attendance of students with a discipline referral so that the data is reported accurately in PowerSchool. 80 P a g e

83 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Sharon Draeger, Principal West Chatham Elementary School 820 Pine Barren Road Pooler, GA Dear Ms. Draeger, Internal Audit has completed a Business Process Review for West Chatham 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 West Chatham Elementary School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at West Chatham Elementary School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on August 22, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 81 P a g e

84 Comparison of Reviews Internal Audit completed a review of business processes at West Chatham Elementary School on the dates shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Aug. 22, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 7% Student Activity Funds 0% Student Data 0% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken to strengthen internal controls in each area. These actions should provide the necessary internal control improvements. Internal Audit appreciates the assistance and support provided by the principal and the staff at West Chatham Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 82 P a g e

85 West Chatham Elementary School Business Process Review August 2018 RESULTS OF REVIEW The results of the Business Process Review at West Chatham Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Two purchase orders were not received in LEAFS within 72 hours, as required by the Purchasing Manual. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District s Purchasing Manual, allows prompt payment to vendors. Recommendation(s): Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual. Actions Taken or To Be Taken Invoices will be dated upon arrival and entered into LEAFS within 24 hours of receipt Wentworth Software purchases that are ordered usually have an receipt that informs us that software is ready for use. This will be forwarded to the Administrative Secretary within 24 hours receipt for processing. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. Recommendation(s): Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. STUDENT DATA Internal Audit selected 30 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found all incidents followed District guidelines. Recommendation(s): Internal controls in this area appear to be functioning appropriately; therefore, we have no recommendations. 83 P a g e

86 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA John King, Acting Principal White Bluff Elementary School 5330 Montgomery Street Savannah, GA Dear Mr. King, Internal Audit has completed a Business Process Review for White Bluff 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 White Bluff Elementary School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at White Bluff Elementary School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on August 9, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 84 P a g e

87 Comparison of Reviews Internal Audit completed a review of business processes at White Bluff Elementary School on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Aug. 9, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 13% Student Activity Funds 13% Student Data 47% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at White Bluff Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 85 P a g e

88 White Bluff Elementary School Business Process Review August 2018 RESULTS OF REVIEW The results of the Business Process Review at White Bluff Elementary are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Two purchase orders did not have a receiver document with a signature and/or date to show the items were received. Two packing slips could not be located onsite for review. 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. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Actions Taken or To Be Taken The administrative secretary is the primary receiver of all packages. In the event of absence, the information specialist will receive packages. Additionally, the administrative secretary and school administration will review the protocols set forth in the Purchasing Manual to ensure fidelity to the protocol expectations. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: The receipts supporting four Report of Monies Collected Form were missing. Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all transactions followed District guidelines. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Recommendation(s): Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. 86 P a g e

89 Actions Taken or To Be Taken The principal will ensure that all staff and administration are trained on Student Activity Fund Handbook and maintain documentation of training completion. The principal will conduct an updated training intervention with the teacher who made a mistake in receipting some of the monies received then stopped receipting after noticing that the value was under $5. Training will include the administrative secretary and her protocols of documenting the mistake on the Report of Collected Funds. STUDENT DATA Internal Audit selected 19 student discipline incidents for review (incidents within the scope of the review). Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in-school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: The incident date on one Disciplinary Referral Form did not match the data entry in PowerSchool. Two student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Logs in PowerSchool. The incident code on one Disciplinary Referral Form was not documented on the form. Five Disciplinary Referral Forms could not be located on site for review. One Disciplinary Referral Form was not entered into PowerSchool. Two Disciplinary Referral Forms were 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. Recommendation(s): Disciplinary Referral Forms should be fully completed, including the referral code, name of person making the referral, parent/guardian information, disposition of the incident, signature of the person entering the information, and signature of the person entering the data in order to provide complete and reliable information for state and local reporting. 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 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. Actions Taken or To Be Taken The school administration will ensure that referrals are completed in their entirety to include all required coding and signatures. The school administration will create a process to ensure that referrals are provided to the information specialist in a timely manner to ensure attendance coding is accurate. 87 P a g e

90 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Susan Ambrose, Principal Andrea B. Williams Elementary School 1150 Wheaton Street Savannah, GA Dear Ms. Ambrose, Internal Audit has completed a Business Process Review for Andrea B. Williams 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 Andrea B. Williams Elementary School, and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Andrea B. Williams Elementary School: Purchasing and Accounts Payable, Student Activity Funds, and Student Data Some transaction testing was performed during July 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on July 19, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 88 P a g e

91 Comparison of Reviews Internal Audit completed a review of business processes at Andrea B. Williams Elementary School on the date shown in the table. The percentage of errors found in each area during this review is shown in this list. While some errors may be attributable to human error, the number of errors is expected to decrease over time. Jul. 19, 2018 Area/Finding Review Error Rate Purchasing and Accounts Payable 30% Student Activity Funds 17% Student Data 13% Results of Review and Opinion The results of this review are listed for each of the business processes on the attachment to this letter. Internal Audit has also included information that the administration provided regarding the actions taken or to be taken 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. Internal Audit appreciates the assistance and support provided by the principal and the staff at Andrea B. Williams Elementary School in completing this Business Process Review. Sincerely, Senior Director, Internal Audit 89 P a g e

92 Andrea B. Williams Elementary School Business Process Review July 2018 RESULTS OF REVIEW The results of the Business Process Review at Andrea B. Williams Elementary School are described below for each area 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. PURCHASING AND ACCOUNTS PAYABLE Internal Audit selected 30 purchase orders for review. Internal Audit compared the documentation at the school site to the information in LEAFS, the District s financial accounting system. Internal Audit found the following issues: Three purchase orders did not have a receiver document with a signature and/or date to show the items were received. Six purchase orders did not have a packing slip on file for review. One purchase order was not received in LEAFS within 72 hours, as required by the Purchasing Manual. 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. Payments to vendors are triggered in part by entering the date the items are received into LEAFS. Prompt entry of receiving information, as required by the District is Purchasing Manual, allows prompt payment to vendors. Recommendation(s): 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 or similar documentation is signed, the contents of the package can be distributed as necessary, while the packing list is maintained with the purchasing documents. Receiving information should be entered in LEAFS within 72 hours, as required by the District s Purchasing Manual Actions Taken or To Be Taken All packages that are received will be routed to the Administrative Secretary for receiving. She will open the packages, ensure the contents are accurate in comparison with the packing sheet. The administrative secretary will also ensure the contents are distributed by the custodial team. The administrative secretary will also ensure the packing slip is filed in the front office with the purchasing documents. The receiver will be entered into LEAFS within 72 hours by the Administrative Secretary. STUDENT ACTIVITY FUNDS Receipts Internal Audit selected 15 receipt transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found the following: Two entries into SchoolCash.net, the District s SAF accounting system, were not dated the same day as the Report of Monies Collected Form, as required by the Student Activity Fund Handbook. The receipt supporting one Report of Monies Collected Form was missing. Three deposits were not made within 24 hours after the funds were received by the sponsor. 90 P a g e

93 Disbursements Internal Audit selected 15 disbursement transactions for review. The supporting documentation was reviewed for accuracy and completeness. Internal Audit found all the following: Two of the 15 disbursement transactions did not have supporting documentation. Receipts validate the amount transferred from one person to another in the Student Activity Fund process, i.e. from a teacher or sponsor to the bookkeeper or the bookkeeper to the bank. These receipts establish accountability for the funds. The Student Activity Fund Handbook procedures state that receipts from SchoolCash.net must be issued for all monies collected from all sources when the money is collected. This process ensures that all transactions are recorded promptly and provides a tracking mechanism to ensure that all deposits are recorded in the bank. 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 in the correct fund. Signatures on the Report of Monies Collected Forms establish accountability for the funds. Deposits should be made on a daily basis to reduce the risk of loss and/or theft. This also reduces the time between receipt of the funds and when the funds are available for use by the activity sponsor. Complete documentation of expenditures, including a Check Request Form and an invoice, supports the disbursement of money from a specific fund. Completing the account (fund) name/number helps to ensure that money is disbursed from the correct fund. Signatures on the Check Request Form establish accountability for the funds. Recommendation(s): Deposits should be entered in SchoolCash.net on the day funds are received by the bookkeeper. Receipts from the sponsor should be presented along with the Report of Monies Collected Form to the bookkeeper to validate the funds submitted and within 24 hours of receipt of the funds. Deposits should be made within 24 hours of receipt from sponsor. Invoice(s) should be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. Actions Taken or To Be Taken The bookkeeper will enter deposits in SchoolCash.net on the day funds are received. All sponsors will turn in monies and receipts to the bookkeeper along with the Report of Monies Collected Form. The bookkeeper will validate the funds submitted and within 24 hours of receipt of the funds. The bookkeeper will ensure deposits will be made within 24 hours of receipt from sponsor. Invoices will be provided to the bookkeeper as supporting documentation from the person turning in a Check Request Form. STUDENT DATA Internal Audit selected 24 student discipline incidents for review. Internal Audit compared the Disciplinary Referral Form to the information in PowerSchool, the District s student information system. If the student was assigned in school or out-of-school suspension, we also checked the student s attendance data for those days. Internal Audit found the following issues: Two student s attendance data in PowerSchool did not match the Disciplinary Referral Form/Discipline Log in PowerSchool. 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 91 P a g e

94 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. Recommendation(s): Attendance data in PowerSchool should agree with the disposition data entered in PowerSchool 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. Actions Taken or To Be Taken Information Specialist will enter the Disciplinary Referral Form into PowerSchool and ensure the attendance code coincides with the discipline incident. The Information Specialist or Administrator entering the Disciplinary Referral Form will sign the Discipline referral when the data is entered into PowerSchool. 92 P a g e

95 SAVANNAH-CHATHAM COUNTY BOARD OF EDUCATION Internal Audit Department 208 Bull Street, Room 310 Savannah, GA Kimsherion Reid, Principal Windsor Forest Elementary School 414 Briarcliff Circle Savannah, GA Dear Ms. Reid, Internal Audit has completed a Business Process Review for Windsor Forest 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 Windsor Forest Elementary School and to provide the principal with feedback. Scope of Review To complete the review, Internal Audit tested a sample of transactions covering the following business processes at Windsor Forest Elementary School: Purchasing and Accounts Payable, Student Activity Funds, Student Data, and Purchase Cards. Some transaction testing was performed during August 2018 using data available from the District s mainframe computer systems. This review was completed with a site visit to the school on September 5, Internal Audit conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that the audit be planned and performed to obtain sufficient, appropriate evidence to provide a reasonable basis for findings and conclusions based on the audit objectives. Internal Audit believes the evidence obtained provides a reasonable basis for the findings and conclusions based on the audit objectives. 93 P a g e