Audit 403293

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance due to clarification by the actuaries of the trust documentation behind the OPEB Trust Fund. Criteria: A good system of internal controls would provide for accurate recording and reporting of postemployment benefits in order to provide for accurate financial reporting. Cause: A large adjustment to dissolve the OPEB Trust Fund and move all its assets to the general fund was required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning fund balance was required to properly state the balance of the post-employment benefit plan. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The District will implement internal controls to properly record postemployment benefits on a timely basis prior to audit fieldwork.

Condition: One of the pupils tested who was claimed for Impact Aid had an address which was not within federal non-taxable property. Criteria: Impact Aid claiming requirements only allow the District to claim pupils whose address is within federal non-taxable property. Cause: The District's controls did not identify discrepancies between pupil's addresses and the categories they should or should not have been reported under for the purposes of Impact Aid. Effect: The District incorrectly claimed at least one student under Impact Aid who did not qualify. Recommendation: We recommend that the District review its internal controls over compiling listings of pupils for Impact Aid, and ensure they are reviewing that the pupil's address agrees with the category they are being reported under. Corrective Action Plan: The Business Manager will assess the internal controls over the Impact Aid claims and adjust the processes to ensure accurate claims.