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FORREST COUNTY AGRICULTURAL HIGH SCHOOL Notes to Financial Statements For the Year Ended June 30, 1995 _part3 pdf

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PATTERSON AUDITOR 3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 601 364-2888 FAX 601 364-2828 37 INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREM

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OFFICE OF THE STATE AUDITOR

STEVEN A PATTERSON

AUDITOR

3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828

37

INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC

REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL

ASSISTANCE PROGRAM TRANSACTIONS

August 9, 1996

Superintendent and School Board

Forrest County Agricultural High School

We have audited the general purpose financial statements of the Forrest County Agricultural High School as of and for the year ended June 30, 1995, and have issued our report thereon dated August 9, 1996 Our report differed from the standard report because of a scope limitation due to inadequate general fixed assets subsidiary records for the buildings and other equipment classifications

In connection with our audit of the 1995 general purpose financial statements of the Forrest County Agricultural High School and with our consideration of the Forrest County Agricultural High School's control structure used to administer federal financial assistance programs, as required by the Office of Management and Budget OMB Circular A-128, "Audits of State and Local Governments," we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended June 30, 1995 As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the

requirements governing types of services allowed or unallowed; eligibility; and special tests and provisions that are applicable to those transactions Our procedures were substantially less in scope than an audit, the objective

of which is the expression of an opinion on the school's compliance with these requirements Accordingly, we

do not express such an opinion

With respect to the items tested, the results of those procedures did not disclose any material instances

of noncompliance with the requirements listed in the preceding paragraph With respect to items not tested, nothing came to our attention that caused us to believe that the Forrest County Agricultural High School had not complied, in all material respects, with those requirements

Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements

The instances of noncompliance of the prior year have been corrected by management

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This report is intended for the information of the school board, management, and the appropriate grantor agencies However, this report is a matter of public record and its distribution is not limited

WILLIAM S JONES, CPA Director, Department of Audit

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OFFICE OF THE STATE AUDITOR

STEVEN A PATTERSON

AUDITOR

3750 I-55 NORTH FRONTAGE ROAD JACKSON, MISSISSIPPI 39211 (601) 364-2888 FAX (601) 364-2828

39

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE

LAWS AND REGULATIONS August 9, 1996

Superintendent and School Board

Forrest County Agricultural High School

We have audited the general purpose financial statements of the Forrest County Agricultural High School as of and for the year ended June 30, 1995, and have issued our report thereon dated August 9, 1996 Our report differed from the standard report because of a scope limitation due to inadequate general fixed assets subsidiary records for the buildings and other equipment classifications

Except for the scope limitation referred to above, we conducted our audit in accordance with generally accepted auditing standards

As required by the state legal compliance audit program prescribed by the Office of the State Auditor,

we have also performed procedures to test compliance with certain state laws and regulations Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the school's compliance with these requirements Accordingly, we do not express such an opinion

The results of our procedures and our audit of the general purpose financial statements disclosed immaterial instances of noncompliance with state laws and regulations Our findings and recommendations and your responses are included in the accompanying "Schedule of Auditor's Findings and Recommendations."

Other than those findings referred to above, the school complied with state laws and regulations for the items tested For those items not tested, nothing came to our attention that would lead us to believe that the school had not complied with state laws and regulations other than those laws and regulations for which we noted violations in our testing referred to above

The Office of the State Auditor or a public accounting firm will review, on the subsequent year's audit engagement, the findings in this report to insure that corrective action has been taken

The instances of noncompliance of the prior year have been corrected by management

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This report is intended for the information of the school board and management However, this report

is a matter of public record and its distribution is not limited

WILLIAM S JONES, CPA Director, Department of Audit

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41 FORREST COUNTY AGRICULTURAL HIGH SCHOOL

FINDINGS AND RECOMMENDATIONS

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42 FORREST COUNTY AGRICULTURAL HIGH SCHOOL

(This page left blank intentionally)

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FORREST COUNTY AGRICULTURAL HIGH SCHOOL Schedule of Auditor’s Findings and Recommendations

For the Year Ended June 30, 1995

43

A Findings for "Independent Auditor's Report on the Internal Control Structure Based on an Audit of the

General Purpose Financial Statements Performed in Accordance with Government Auditing Standards":

1 Finding

The following board actions were not properly documented in the board minutes:

1) The resolutions 2) The scholarship guidelines 3) The salary scale

4) The vendor supplying the lowest and best bid 5) The list of deleted equipment

Recommendation

We recommend that the board minutes be detailed to indicate all actions of the board

School’s Response Items 1 through 5 have been corrected These will be properly documented in the future Board minutes will reflect detailed actions of the board concerning these areas

2 Finding

A $30 check cleared the bank without the payee's name and the superintendent's signature on the face of the check

Recommendation

We recommend that the district take appropriate action to ensure that it does not release and its school depositories do not accept checks that are incomplete

School’s Response The school will be more careful, in the future, to insure that no incomplete checks are released

B Findings for "Independent Auditor's Report on Compliance with State Laws and Regulations":

1 Finding

On one purchase order over $500, the school purchased goods from a vendor which did not provide the lowest quote but did not document in its board minutes why the lowest bid was not accepted

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FORREST COUNTY AGRICULTURAL HIGH SCHOOL Schedule of Auditor’s Findings and Recommendations

For the Year Ended June 30, 1995

44

Recommendation

The school district should comply with Section 31-7-13(d), Miss Code Ann (1972), which requires the governing authority to place on its minutes detailed calculations and a narrative summary showing that the accepted bid was determined to be the lowest and best bid in situations where the governing authority accepts a bid other than the lowest bid actually submitted

School’s Response

Forrest County Agricultural High School will comply with Section 31-7-13(d), Miss Code Ann (1972), showing detailed calculations and a narrative summary as to why an accepted quote is determined to be the best, when we accept a quote other than the lowest quote actually submitted

2 Finding

The school's final amended budget for the 1994-1995 fiscal year was not properly documented

in the school board minutes

Recommendation

We recommend that the district comply with Section 37-61-21, Miss Code Ann (1972), which requires school boards to incorporate the revised portions of the budget in their minutes

by spreading them on the minutes or by attaching them as an addendum

School’s Response

This item has been corrected, and all budget amendments will be included in the board

minutes We will comply with Section 37-61-21, Miss Code Ann (1972), by either spreading them on the minutes or by attaching an addendum

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