STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR PHIL BRYANT State Auditor RAMONA HILL, CPA Director, Financial and Compliance Audit Division BRENT BALLARD, CPA Director, Education Audit Section_part5 pdf

As described in Section 2 of this schedule, reportable conditions in internal control were disclosed by the audit of the general purpose financial statements.. The audit did not disclose

SUNFLOWER COUNTY SCHOOL DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

38 SUNFLOWER COUNTY SCHOOL DISTRICT

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Section 1: Summary of Auditor=s Results

1 A qualified opinion was issued on the general purpose financial statements

2 As described in Section 2 of this schedule, reportable conditions in internal control were disclosed by

the audit of the general purpose financial statements The reportable condition described in Finding 97-1 is considered to be a material weakness

3 The audit did not disclose any noncompliance which is material to the general purpose financial

statements

4 The audit did not disclose any material weaknesses in internal control over major programs

5 An unqualified opinion was issued on compliance for major programs

6 The audit did not disclose any audit findings which are required to be reported under Section

.510(a) of OMB Circular A-133

7 The major program was Title I grants to local education agencies - CFDA #84.010

8 The dollar threshold used to distinguish between Type A and Type B programs was $300,000

9 The auditee did not qualify as a low-risk auditee

Section 2: Findings Relating to the Financial Statements

97-1 Finding

The district did not maintain adequate subsidiary records documenting the existence, completeness and valuation of its General Fixed Assets This lack of substantiation resulted in a scope limitation and a modified opinion in the independent auditor=s report

This finding was also reported in the 1995-1996 fiscal year audit report

Recommendation

We recommend that the district maintain a complete fixed asset subsidiary ledger as prescribed in Section G of the Financial Accounting Manual for Mississippi Public School Districts The district should also conduct an annual inventory of all fixed assets and reconcile this to the subsidiary records

97-2 Finding

The school district shares townships with other school districts The state law requires that the sixteenth section revenue derived from the shared townships be divided according to the applicable percentage of educable children Controls are not in place to adequately divide this sixteenth section revenue since the district failed to prepare a current list of educable children and file it with the applicable superintendent as required by Section 29-3-121, Miss Code Ann (1972) The district apportioned sixteenth section revenue using a non-current educable child count that was mutually agreed upon by the districts

Recommendation

The district should develop controls to properly comply with Section 29-3-121, Miss Code Ann (1972) The list of educable children is required to be filed by December 31 of each year and used to properly divide all earnings from those shared townships for the subsequent

twelve-month period

97-3 Finding

The following items were noted during the testing of activity fund revenues and expenditures:

1 The district did not use prenumbered receipts for a portion of the fiscal year at one of its

schools

2 Nonconsecutive receipt books were used at several schools during the year

3 Several receipts were classified as General Fund revenues instead of being classified as

Agency Fund liabilities

4 There was no signature evidencing receipt of funds on two requests for activity fund

disbursement forms

5 One school did not use prenumbered activity fund checks for a portion of the school year

6 Three activity fund bank statements were reconciled at June 30, 1997 to a balance other than

the general ledger balance

Recommendation

We recommend that policies and procedures be implemented, to the greatest extent possible, to correct the above noted weaknesses At a minimum, the district should perform the following:

1 The district should only use prenumbered receipts and checks

2 The receipt book should only be used in consecutive order

3 Activity fund transactions should exhibit proper fund integrity between the General Funds

and Agency Funds

4 There should always be a signature evidencing receipt of funds on the request for activity

funds

5 The activity fund bank statements should be reconciled to the general ledger balance Section 3: Findings and Questioned Costs for Federal Awards

The results of our tests did not disclose any findings and questioned costs related to federal awards