Finding 35892 (2022-008)

*22-08 Comingling of Funds Finding: The Board of Education maintains one cash account for operations and grants. The comingling of operational and grant monies makes it difficult if not impossible to reconcile with the City. Statement of Concurrence or Nonconcurrence: The City agrees with the finding. Management?s Response: A process has been implemented by both City and BoE. Funds are distributed by the City for the operating pieces of accounts payable and payroll. BoE transfers funds for the grant portion of both accounts payable and payroll runs. Tracking sheets created by BoE are being shared with the city for reconciliation purposes. The operating account as well as the payroll account function essentially as a zero-balance account. The BoE is establishing separate funds to track operating and grant income and expenditures as of July 1, 2023. The BoE has enabled their grant account to directly pay for grant expenditures. Funds will no longer need to be transferred. Grant funded payroll transactions will be transferred to the BoE payroll account. Name of Contact Person: Rob Trainor Projected Completion Date: August 4st, 2023