Audit 388193

2025-002 Board of Education Procedures Finding: The Board of Education currently does not have regular operating procedures that allow for complete and accurate reporting. The operating fund is not reconciled to the City on a regular monthly basis and the remaining Board of Education funds (Educational Grants, School Lunch, School Readiness and Student Activities) needed significant corrections prior and after being given to the auditor in November 2025. Criteria: All funds should be maintained using a double entry accounting with a complete and accurate full trial balance. Those respective trial balances should be reconciled monthly utilizing the reconciliation system that is integrated within the software. Once reconciled, the information should be given to the City’s finance office. Cause: The causes are as follows: • Turnover in the Business Manager position during the audit process, • Lack of policy and procedural manual, and • Underutilization of current accounting system. Effect: Audit process was significantly delayed. Cash flow planning and budgeting for subsequent periods is almost impossible if information is not reconciled timely. Recommendation: An implementation system needs to be put in place to account for vacancies in key financial positions. We recommend overlapping hiring in key positions and cross-training of individuals to allow for the regular reconciliation process to take place even though the Business Manager position is vacant. We also recommend that a policy and procedure manual be completed and utilized. Management’s Response: Management’s response is as follows:  Continue to support current business manager providing internal and external support to ensure improvement in all aspects of finance and accounting function of school's central office.  Create policy documentation and procedures across job function within accounting/finance departments in Central Office. Policies and procedures should be created in concert with City Finance Department to ensure roles and responsibilities are clearly defined and job functions are covered should personnel leave.  Support and fund professional development of current employees on existing ERP system and best practices for school business and finance function. This may entail support from an outside consultant with school finance expertise.