Ch'ooshgai Community School Board of Education, Inc.

2023-001

2022-001

2022-001 Account Reconciliations Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Criteria: The School is responsible for maintaining adequate internal controls over its accounting records, account balances, and financial statement disclosures. Accounting records should include a complete, balanced general ledger that records all transactions that is supported by appropriate subsidiary records so that accurate financial statements can be prepared. Procedures should be in place to ensure that balance sheet accounts are independently reviewed and reconciled to the subsidiary records in a timely and effective manner. Cause: Turnover with School personnel led to a lapse in the bank reconciliations being performed accurately and timely. Effect: Without established and adequate internal controls and reconciliation procedures, the School?s balances lack certainty about the accuracy of the balances. Also, the probability that fraud or material errors will occur and go undetected generally increases. Auditor's Recommendation: We recommend management evaluate all aspects of the financial close and reporting process as well as the account reconciliation process and establish adequate internal controls and procedures to ensure timely and accurate financial statements and supporting schedules and to ensure timely compliance requirements are met. View Of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.

Finding Number: 2022-001 - Account Reconciliations Responsible Persons: Business Manager, Ramona Antone-Nez Anticipated Completion Date: June 2023 Planned Corrective Action: The school has a new business manager and has hired an independent consulting firm to help with correct account reconciliations.

Finding Number: FS-2019-001Repeat Finding: Yes ? FS-2018-001, FS-2017-001, 2016-002Type of Finding: Material WeaknessDescription: Internal Controls Over Disbursements and Journal EntriesCRITERIASchool management is responsible for establishing and maintaining internal controls over credit cardtransactions. In addition, the School must ensure purchase orders are prepared and approved prior tothe ordering and receipt of goods or services.CONDITIONThe School lacked adequate internal controls over its accounting of disbursements and journal entries toensure that all financial activities were properly processed, recorded and supported.CAUSEThe School lacked adequate internal controls over disbursements and journal entries. Controls in placedid not always operate effectively or were not followed.EFFECTThe School?s internal controls over disbursements and journal entries were not adequate to ensure thatall financial activities were properly processed, recorded and supported.CONTEXTDuring our review of disbursements, we noted the following:? While the school was able to correct P.O. procedures to ensure proper recording at the end ofthe year, during most of the year P.O.s were prepared after invoices were received.During our review of travel reimbursements, we noted the following:? For one of 10 travel reimbursements reviewed, the School paid for travel expenses that werenot supported by a receipt or documentation protocol for missing receipts.RECOMMENDATIONThe School should develop and implement stronger internal controls over its accounting ofdisbursements and journal entries to ensure that all financial activities are properly processed andrecorded. The School?s personnel should obtain additional training as needed.VIEWS OF RESPONSIBLE OFFICIALSSee Corrective Action Plan

Finding Number: FS-2019-001 ? Internal Controls Over Disbursements and Journal EntriesContact Person: Frank Chiapetti, Principal; Lisa Hubbard, Board Assistant; Shirlene Lilly,Business Manager; Jim Smith, Business Technician; and Shirley Norton, Business TechnicianAnticipated Completion Date: July 1, 2019Planned Corrective Action:A Business Manager has been hired to ensure all internal controls over disbursements andjournal entries are improved and streamlined. The Business Manager will ensure all policies andprocedures are planned and followed. All Finance office staff have implemented strictcompliance to ensure all accounting of disbursements have supporting documents and properlyrecorded prior to purchase or obligating and to ensure they are allowable. Requisition andPurchase Order are in place before goods or services are rendered. Any purchase for goods orservices requires a requisition and purchase order with supporting documents. The school hasdesignated one individual to track and record all credit card transactions with supportingdocuments before credit card is used. Travel authorizations are in place before travel are done.Any travels reimbursements require supporting documents to be submitted beforereimbursements are disturbed. The Finance Office is using www.gsa.gov for correct amountsfor per diem rates and POV mileage rates. CCS will comply with the Travel Federal Regulationand school travel policy in place.Finding Number: FS-2019-002 ? Internal Controls Over Accounting Records and FinancialReportingContact Person: Frank Chiapetti, Principal and Shirlene Lilly, Business ManagerAnticipated Completion Date: June 30, 2020Planned Corrective Action:A Business Manager has been hired to ensure bank reconciliation for all school bank accountsare reconciled and reviewed on a timely manner. Payroll taxes are reconciled and paid on timewhen bi-weekly payroll is complete. The school has established a student activity accountthrough Wells Fargo. The Business Manager will set up student activities list through theschool?s accounting software, Infinite Visions. The Business Manager will assure department?srevenue and expenditures are within their budget by providing them a report during our weeklyadministrative meetings.

2018-001

2017-001

2017-002, 2016-004

2017-003

2016-004