Rock Terrace Action Plan

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RECEIVEDS E P 0 5 2 0 1 3

School: Rock Terrace SchoolFiscal Management Action Plan

Principal: Kathy LertoraApproved bycommunity superintendent: ~ 6fi----~ \

Attachment

Date of approval: 1{. { f 3Findings and Recommendationsof School's Financial Report Evidence of"CompletionDescription of"ResolutionAnd Personfs) Responsible TimelineMonthly review by the principal ofbankstatement, bank reconciliation andgeneral ledger reports in a timely manneras evidenced by the principal 's signatureanddate.

Initiate and maintain a process that ensuresmonthly reports are reviewed, dated, and signedin a timely manner. Administrative secretary schedules monthlymeeting with the bookkeeper, administrativesecretary and principal to review updates, andsign necessary documentation. Outlookreminders will be set for administrative

secretary and principal.

September 2013Monthly Signed and dated ledger reports

Not all accounts and ledgers were signedby account sponsors on a monthly basisand some accounts did not have anaccount sponsor assigned. Provide professional development andstructured time and supports foradministrative secretary for recordingreceipts, paying receipts, and printingmonthly sponsor reports for principal'sreview. Provide professional development foraccount sponsors regarding rights andresponsibilities as an account sponsor. The financial agent reviews all accountswith principal to ensure that each accounthas one designated sponsor. Sponsorsshould be required to review and resolveany discrepancies in their accounts andreturn the signed statements to theadministrative secretary in a timely manner. Administrative secretary maintains a binderor file of the signed sponsor reports. Theadmin secretary will have process/ checklistto ensure all sponsor reports are returned

monthly.

September 2013

September 2013

August 2013Monthly

SeptemberMonthly

Meeting agendas whereprofessionaJ development providedSigned and dated sponsored reportsby account sponsorsList of all accounts with sponsorsassignedBinder ofsigned sponsor reports

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Transfers between general ledgeraccounts may be made only after MCPSForm 281-46, lAF - Transfer, has beenexecuted by both the account sponsorand the principal or acting principal.There were instances found whentransfer request forms had not beensignedby accountsponsors,as required.Invoices were not always signed bythe receiver, and many disbursementsdid not have adequate documentationor descriptions to fully explain thereason for the expenditure. Disbursements for severalmagazine subscriptions and bookspurchased by the former principallacked explanations as to thereason, and appeared to beunrelated to the program accountscharged.

The former principal approvedthe payment of a traffic citationissued to the driver of a MCPSvehicle used by the school ratherthan having the personresponsible fo r driving the vanmake a check payable to MCPSas directed by the Department ofTransportation. We again found that the schoolpurchased gift cards and an iPodNano without documentation as tothe purpose or who received theitems.

To improve internal controls, theadministrative secretary is instructed toexecute transfers only according to requestsapproved by the principal or actingprincipal, and the sponsor if applicable.Provide professional development foraccount sponsors regarding rights andresponsibilities as an account sponsor.

Designated person receives and checksitems delivered and verify the invoicepacking slip are correct with signature.(administrative secretary or activitysponsor)Professional development to administrativesecretary (August 2013), professional staff(August 2013), account sponsors(September 2013) and program sponsors(September 2013) Loensure purchases forprograms be requested by the sponsors ofthose programs, and approved in advanceby the principal. In addition, requests mustbe fully explained so that the purpose maybe properly reviewed prior to the purchase,and that complete documentation must beattached lo justify that purchases areappropriate for the school. Finally,descriptions of the purpose of the purchaseshould be as clear aspossible on the generalledger.Professional development on MCPS Form280-54, Request for a Purchase, wasconducted on August 23, 20I3 for allprofessional staff, and select supportingservice staff. Provide clarification to staff membersregarding responsibilities for vehiclecitations. Establish structures for school sponsors andadministration to have students sign a

August 2013

September 2013

September 2013

August 2013

September 2013September 2013

Ledger reports, transfer requestforms

Signed packing slipsComplete,detailed, signed 280-54,Request for a Purchase forms.Signed receipts of studentrewardsMeeting agendas whereprofessional development provided

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receipt for all rewards for positive behaviorinterventions. When purchases arerequested, the administrative secretary willgive sponsor form for students to signreceipts of prizes.

No purchase logs could be located atthe time of audit.

Fund raisers were found recorded invarious club, class, and otheraccounts. Fund raiser request formswere prepared that appeared to havebeen forwarded to the principal forapproval, but had not been signed.Most fund raisers did not have acompletion report so that the activityoutcome could be analyzed.Review of field trip activitiesrevealed that sponsors provided costand fee information as funds werecollected and remitted but they didnot provide comprehensive financialinformation to the administrativesecretary at the completion of trips.For Outdoor EnvironmentalEducation Program (OEEP) theschool indicated student paymentswith an "x" on the accounting form,rather than recording the actualamount paid. In addition, studentswere charged an extra $2 fee formaterials that was corningled with theOEEP activity fee. The accountappeared to have excess money butdue to the comingling of funds, wewere unable to determine the reason.Multiple shortcomings were found for 1 control over ticketed events. The school did not designate staff

Remind school staff to be in compliance I September2013with Purchasing Card Users Guide.

Professional development for the OEEP I October2013sponsor for keeping accurate records ofstudent payments, including amounts anddates paid and student waiver information,In addition, review of expectation thatmaterials fees be recorded in an accountseparate from the OEEP activity fee.

Professional development for sponsors of I September2013activities for ticketed events. Procedures forsale of tickets are reviewed with appropriate

Professionaldevelopmentfor staffinvolved inschool fundraisingactivities.Establishprocess for ensuringall fundraisingcontractssigned by principal is established.Complete"CompletionReports" for all fundraisers.

Professionalstaff, andpotential sponsorsoffield trips receiveprofessionaldevelopmentonrequiredproceduresand documentationonAugust 23, 2013, andcompletionofreconciliationreport at the endof the field tripwill be completedby theadministrativesecretary.

September2013

August2013

Monthlylogs forPurchase CardUsers

MeetingagendaswhereprofessionaldevelopmentprovidedFundraising contracts signed byprincipalCompleted paperwork for allfundraisers

MeetingagendaswhereprofessionaldevelopmentprovidedCompletedfield trip paperwork

MeetingagendaswhereprofessionaldevelopmentprovidedAccuratecompletedpaperworkandrecords forOutdoorEnvironmentalEducationProgram

Accuraterecordsof sales forticketedeventsin compliancewithrequirements

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to perform the required duties ofthe ticket controller, admissionsmanager, and ticket reportauditor, and did not control ticketsales for each event with therequired ticket form.In addition, a perpetual inventoryof tickets was not maintained, andthe school used only one type orcolor of ticket for the prom butsold the tickets at various pricesthat made it impossible todetermine whether or not theschool received all revenue towhich it was entitled.

The picture commission for FY 201 3had not been received by the school.The vendor informed the auditorsthat commission checks are to beissued to the school.Internal control procedures that hadbeen established for business-likeactivities that enable students to gainwork experience that generaterevenues for the school were notmaintained. The business office wasno longer involved in the billingprocess.

Due to the Jack of records foroutstanding customer billings toindicate amounts owed to the schoolfor work completed by the school'sbusiness programs, these

staff prior to events, and that proceduresadhere to the requirements stated in theregulation.

Administrative Secretary maintains aninventory of tickets used for school events.

Financial staff establish a process formonitoring contract activity to ensure thatall statements are received and filed,commissions due are received, and theschool complies with all terms of thecontract. All sponsors of business-like activitiesreceive specific professional developmenton financial procedures and maintainingtirnelines for record keeping of billing/receipts.Reestablish a process to record all workundertaken on pre-numbered work orderforms, including a description of the workperformed, the amount charged, and thedate completed. These forms are to begiven to the administrative secretary forbilling to the customer and follow up, ifnecessary, until payment has been received.

Put processes in place to maintain accuraterecords and billing procedures. lAF annualreports reflect account activity so that theprincipal, and other users of reports, can beinformed of the status of the school's

September 2013

August 2013

September2013Ongoing support,weekly

September 2013Ongoing supportmonthly

Inventoryof tickets

Current signed picture contract onfileRecord of commission checksreceived

Written procedures and accuraterecordsfor business like activities.

Accurate monthly and annual lAFreports

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undetermined amounts owed to the 1; accounts.school were not included in the Ischool's annual report. As a result,Ithe school's total assets wereunderstated.Instances of nonconformity were found Bring the school's accounts into compliance August 2013 Accurateschool accounts inin IAF account structures. Auditors with the current chart of accounts, and review Ongoing compliancewith guidelines

noted that some transactions were not guidelines for uses of funds.properly classified in appropriateaccounts. For example, expenses and receiptsfor fund raisers were sometimesrecorded in class or club accounts,rather than in fund raiser accounts. Staff development expenses werefound in the general account. Staff appreciation items were paidfrom a fund raiser account. In addition, numerous unrelatedexpenses were recorded directly inthe school's business accounts,rather than transferring fundsgenerated by the programs toappropriate accounts prior tomaking the disbursement.Note: A copy of the approved plan is to he sent to the Internal A11ditOffice, CESC, Room 11.