Report No. 08006, School Board 8006
STATE OF FLORIDA
OFFICE OP THE AUDITOR GENERAI.
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*** MONROE COUNTY ***
DISTRICT SCHOOL BOARD
As of June 30, 1972
8006
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Report on Audit
of the Accounts of
MONROE COUNTY
DISTRICT SCHOOL BOARD
As of June 30, 1972
Dated: July 24, 1973
Comments Pages 1-24
Exhibits and Schedules
For the Fiscal Year Ended June 30, 1971 25-30
For the Fiscal Year Ended June 30, 1972 3I-43
iT
STATE OFFE.O1tEDA
o
0 r- 2 Orr mil or THE AUDITOR GENERAL
cob „a
Tallahassee, Florida
ERNEST ELLISON.C. P A.
n„o„o„ GENERAL July 24, 1971
The Legislative Auditing Committee
of the Legislature
and the
Governor of Florida
Sirs:
Pursuant to law, I have directed that an audit be made of the
accounts and records of the
DISTRICT SCHOOL BOARD
MONROE COUNTY
For the fiscal years ended June 30, 1971,
and June 30, 1972,
and present this report thereon.
PERSONNEL
The personnel of the Board was as follows:
District
No.
William R. Gamble to 1-4-71 1
Robert A. Dion from 1-5-71 1
Enoch H. Walker, Vice-Chairman 2
Charles Lloyd MacWhorter to 10-9-70, the
Date of his Resignation 3
Frances Signorelli from 10-14-70 to 1-4-71 3
Sydney E. Mathews from 1-5-72 3
Wilhelmina C. Harvey 4
Ruth Alice Campbell, Chairman 5
Armando J. Henriques, Superintendent
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SCOPE AND OPINION
An examination of the accounts and records was made in accordance
with generally accepted auditing standards , and accordingly included such
tests of the accounting records and such other auditing procedures considered
necessary in the circumstances.
The State Board of Education places responsibility in the District
School Board for audits of internal funds at the various schools; therefore,
these funds are not included in the scope of this audit.
The accounting records are required to be kept in accordance with
the uniform system of accounts as prescribed by the State Board of Education
pursuant to Section 237.01, Florida Statutes.
Section 6A-1.022, Rules of the State Board of Education, which
prescribes the methods of accounting to be used, provided until September 17,
1972, that revenue of the Operating Funds and the Debt Service Funds be
recorded on the cash basis of accounting. Beginning with the fiscal year
1971-72, the Department of Education required that revenues of all the
Board's budgetary funds be recorded on the accrual basis of accounting.
The financial statements accompanying this report were prepared
without adjustment from the Board's annual financial reports.
Because of errors, omissions, and/or incompleteness of the records
and procedures to support the amounts for material stores inventory, no
opinion can be expressed for this item. A review of vouchers paid during
the months of July 1971 and July 1972 disclosed approximately $10,000 and
$27,000 respectively, in vouchers that should have been, but were not, reported
as vouchers payable. The amounts reported for Bonded and Deferred Debt and
Interest did not include a liability of $70,000 at June 30, 1971, and $55,000
at June 30, 1972, which is due over a period of thirteen years that was created
by the Legislature to compensate a student injured in a school accident.
In my opinion, except for the comments above, the attached financial
statements present fairly the financial condition of the Board at June 30,
1971, and June 30, 1972, and the results of its operations for the years then
ended, in conformity with generally accepted governmental accounting principles
applied on a consistent basis.
FINANCIAL CONDITION
(1) The financial position of the various funds at June 30, 1971, and
June 30, 1972; is shown on exhibits A. Changes in reserves and fund balances
are shown on schedules 1-A.
(2) Current resources at fiscal yea endings were sufficient to meet
current obligations at those dates.
(3) The unappropriated fund balances of the Operating Funds at the
end of the last two fiscal years were as follows:
June 30, 1971 $1,075,901.88
June 30, 1972 1,168,138.56
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(4) Pursuant to Section 6A-1.57(4) , Rules of the State Board of Education,
the Board redeposited petty cash funds into its accounts at the end of both
fiscal years. The redeposit of petty cash funds totaling $100 at June 30, 1971,
was erroneously recorded as revenue, thus overstating the cash balance and
unappropriated fund balance of the Operating Funds for that year.
(5) A test of the vouchers paid in July 1971 and July 1972 revealed
invoices totaling approximately $10,000 and $27,000, respectively, that
should have been recorded as expense and vouchers payable at June 30, 1971,
and June 30, 1972. This failure to record some expenses and liabilities at
year-end was also reported in audit report No. 7581, pages 3 and 6.
(6) The separate bank account maintained by the Board for employees and
the Board's share of FICA taxes was not recorded on the general ledger accounts
nor shown on the annual financial report. The balances of this account at
June 30, 1971, and June 30, 1972, were $24.14 and $121,916.59, respectively.
As mentioned in audit report No. 7581, page 3, this account should be incorpo-
rated into the Board's financial records and breakage amounts periodically
reconciled and closed into the proper revenue or expense account.
(7) The balance reported for material stores inventory at June 30, 1971,
represented amounts for materials and supplies located at the stores and distri-
bution warehouse and gas and oil at the transportation department. In addition
to these inventories the balance reported at June 30, 1972, also included
materials and supplies on hand in the amount of $84,148.15 at the maintenance
department and $4,327.80 for food service supplies . Prior to June 30, 1972,
maintenance materials and supplies were charged directly to maintenance expense.
An adjustment was not made to reduce the expense account by the applicable
portion of supplies included in the material stores inventory, thus overstating
expenses by that amount. In addition, the valuation placed on the inventory
itself could not be verified. A cut-off date was not established and the
actual count of the inventory did not start until three weeks after the close
of the fiscal year and was not adjusted for items received or issued after
June 30. The physical inventories for gas and oil and for warehouse materials
were observed. Although written instructions were not prepared for the taking
of these inventories, I was able to satisfy myself that the procedures and
methods employed did provide a substantially accurate count. The perpetual
inventory records for materials and supplies contained numerous clerical
errors and adjustments without proper documentation. During the first year of
the audit period, the method of recording prices on the perpetual inventory
records was based on gross purchase prices. This pricing method was rot
consistent with that used by the accounting department which recorded inventory
amounts at gross prices less applicable discounts; however, this practice was
discontinued during the last year of the audit period when the average method
of pricing inventory was adopted and applicable discounts were taken into
consideration. In addition to the amounts reported for material stores
inventory, the Board also maintained in its transportation department a stock
of maintenance parts for vehicles. The Assistant Director of Maintenance
estimated the value of the inventory at approximately $5,000 at June 30, 1971,
and $8,300 at June 30, 1972. Even though perpetual inventory records were
kept for the inventory items, the cost amounts were recorded as expenditures
when items were received instead of being included in the Board's inventory
accounts.
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(B) The Board's annual financial report did not include a liability of
$70,000 at June 30, 1971, and $55,000 at June 30, 1972, which was created
pursuant to Chapter 70-814, Special Acts of 1970. As mentioned in audit report
No. 7581, page 4, this act requires the Board to pay a total of $70,000 over a
period of thirteen years beginning in 1970 to a reputable banking institution
in the county as guardian of the moneys for the father of a boy injured in an
explosion at a school while disposing of chemicals for his teacher. The first
installment was to be in the amount of $10,000 and the subsequent twelve pay-
ments were to be for $5,000 each. The first two installments totaling $15,000
were paid late in 1971 upon the appointment of the guardian bank.
(9) During 1970-71 the Board borrowed $793,000 in three loans which are
authorized by Section 237.27, Florida Statutes. These loans are discussed in
greater detail under the heading BONDED AND DEFERRED DEBT AND INTEREST.
(10) As shown on schedule 1-A, reserves and fund balances for Operating
Funds were adjusted during 1971-72 by $90,541.93 from that reported by the
Board as the beginning balances for the fiscal year. The adjustments consisted
of $88,475.95 for the maintenance and food service inventories at June 30, 1972,
to compensate for the fact that no amounts had been included in the inventory
account in previous years for these items and $2,065 .98 for other adjustments.
These other adjustments included an amount of $1,872.14 to correct an erroneous
entry made in recording funds received during 1971-72 for State free textbooks.
FINANCIAL OPERATIONS
(11) Statements of revenue and expenditures for the fiscal years ended
June 30 , 1971, and June 30, 1972, as recorded in the Board's accounts are
presented on exhibits B.
Revenue
(12) Revenues for the last two fiscal years as reported by the Board
are summarized for comparative purposes in the following tabulation:
Source 1970-71 1971-72
Amount Percent Amount Percent
Federal:
Received Direct $ 535,020. 89 5.63 $ 1,363,558.44(1) 13.06
Received Through State 393,503.54 4.14 475 ,446.10 4.55
Total Federal $ 928,524.43 9.77 $ 1,839 ,004. 54 17.61
State 4,325,284.90 45.52 4,868,172.74 46.62
Local 3,453,272.12 36.34 3,718,777.17 35.75
Nonrevenue 795,468.00(2) 8.37 17,180.21 .02
Total $9,502,549.45 100.00 $10,443,134.66 100.00
Notes: (1) Includes $347,333 received in July 1971 as final payment of
1970-71 allocation.
(2) Includes S793,000 received as the proceeds of a loan obtained
pursuant to Section 237.27, Florida Statutes.
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(13) Revenue received directly from the Federal Government during 1970-71
consisted of Federal Impact Funds (Public Law 81-874) in the amount of
$519,734, and a contribution of $15,286.89 for the Key Deer National Wildlife
Refuge being located in the county. The funds provided by Public Law 81-874,
are for assistance in the operation of local school districts•due to the loss
of tax funds because of Federal installations located in their areas. During
1971-72 a total of $1,237,847 was provided to the Board for this purpose and
$18,191.44 for the Key Deer National Wildlife Refuge. In addition, $107,520
was also received from the Federal Government for the Neighborhood Youth Corps
Program. This money was used to provide jobs during the summer months for 250
students of poverty-level families.
(14) The revenue reported from the Federal Government through the State
was derived from contractual agreements between the two governments and
represented approved allocations for certain programs. Comments regarding these
funds are included under the heading CONTRACTED PROGRAM FUNDS.
(15) Minimum foundation program funds , distribution of sales tax funds, and
additional capital outlay funds were allocated by the Commissioner of Education
primarily on the basis of reports of average daily attendance of pupils for the
preceding year. In addition, a report of the certificate rank and contract
status of certificated school personnel as of January 1 of the current year
was used by the Commissioner to determine that portion of the minimum foundation
program allocable for salaries. A final report of rank and contract status will
be initiated by the Commissioner covering all certificated personnel employed,
and may result in an adjustment for overremittances or underremittances of minimum
foundation program funds. The final rank and contract status reports for 1970-71
and 1971-72 had not been prepared and thus were not available for audit examina-
tion. Annual reports of pupil attendance (average daily attendance and average
daily membership at each school) were correctly prepared and were adequately
supported by detailed attendance records. A comparison of average daily
attendance (ADA), average daily membership (ADM) , and percentage of attendance
is shown below:
ADA ADM Percentages
of Attendance
1970-71 9,466 10,135 93.40
1971-72 9,653 10 ,391 92.90
(16) The revenue reported from local sources was primarily received from
taxes, and from investment by the Board of temporarily idle funds.
(17) The following tabulation shows the principal sources of local revenue:
1970-71 1971-72
Taxes:
District Current $3,101,612.28 $3,399,811.43
District Interest and Sinking 155,083.51 204,176.22
Interest on Investments 137 ,402.66 67,209.44
Miscellaneous 59 ,173.67 47,580.08
Total $3 ,453,272.12 $3,718,777.17
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(18) Receipts of record were properly posted; however, some deficiencies
were noted in the control procedures and are discussed under the heading
INTERNAL CONTROL AND RECORDS.
(19) During 1970-71, the Board approved charging the Montanari Sea Camp
a fee of $150 per pupil per semester for students enrolled at the Montanari
Sea Camp who attend Monroe County schools. A total of $1,650 was received
during 1970-71. Section 228.16(3)(b), Florida Statutes, 1971, subsequently
amended and transferred to Section 228.121(1), Florida Statutes, 1972 Supplement,
provides in part that pupils whose parent, parents, or guardian are nonresi-
dents of Florida shall be charged a tuition fee of $50 payable at the time the
pupil is enrolled. I know of no legal authority for the Board to charge a
fee other than that provided in the section quoted above. The Finance Director
stated that there were no students from the Montanari Sea Camp during 1971-72.
(20) The review and confirmation of the cash balances reported by the
Board at June 30, 1971, and June 30, 1972, revealed that in each year several
large sums were shown as deposits in transit when in fact they actually were
received by the Board in July . These receipts should have been reported as
revenue in the year in which they were received.
Expenditures
(21) Expenditures for the last two years as reported by the Board are
summarized for comparative purposes in the following tabulation:
Purpose 1970-71 1971-72
Amount Percent Amount Percent
Administration $ 205,806.79 2.25 $ 245,069.93 2.03
Instruction 5,385,860.23 58.96 6,155,406.46 50.88
Operation of Plant 548,992.10 6.01 626,420.22 5.18
Maintenance of Plant 391,625.10 4.29 506,658.94 4.19
Auxiliary Services 407,888.76 4.46 484,883.82 4.01
Fixed Charges 512,132.99 5.61 690,985.68 5.71
Nonprogram Schools 21,575.49 .24 33,239.69 .27
Total Current Expenses $7,473,881.46 81.82 $ 8,742,664.74 72.27
Capital Outlay 1,182,763.86 12.95 2,698,453. 56 22.31
Debt Service 388,625.54 4.25 656,499.87 5.42
Remittances to Other
Districts and Agencies 89,951.42 .98 38.40
Total $9 ,135,222.28 100.00 $12,097,656.57 100.00
(22) Expenditures were kept within the final amounts budgeted.
(23) Expenditures were, with minor exceptions, properly supported by
documentation and correctly classified. The accounting department did not
have written accounting procedures detailing the functions of the various
fiscal positions, and as a result the procedures used in the preaudit of
vouchers was not available for evaluation. The vouchers did not show check
marks or notations to indicate the degree of preaudit; however, they did have
the initials of the accounting clerk responsible for the preaudit function.
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The preaudit procedure, as determined from discussions with the clerk respon-
sible for this function and from my audit tests, appeared adequate. Discounts
and tax exemptions were taken when applicable.
(24) The accounting department utilized the purchase order system to
ensure the propriety of expenditures. The system in existence required the
approval of the accounting department and the Superintendent prior to the
issuance of a purchase order.
(25) The 1971-72 allocation of State funds for textbooks was $68,014.39,
of which $61,792.16 was disbursed at State level and the balance of $6,222.23
was remitted to the Board. The Board spent $2,442.39 of the textbook funds
which when added to those disbursed at State level amounted to $64,235.05.
However, in the Board's Annual Financial Report, the expenditure for textbooks
was reported as $66,107.19, which was $1,872.14 greater than the actual
expenditures.
(26) The agreement for the WATS line used by the Board for long-distance
telephone calls was reviewed and changed during the first part of the audit
period. The original agreement called for a payment of $300 per month for a
maximum use time and additional charges for usage over the maximum. After the
analysis was made which revealed that payments for several months were in
excess of $600 per month the agreement was changed so that the Board cbtained
a billing change whereby it paid a flat amount of $600 per month for unlimited
calls. During the month of January 1972 this rate was increased to $645.60.
Salaries and Personnel Records
(27) A summary of staff positions shown in the Superintendent's Annual
Report of Personnel, Attendance, and Miscellaneous Summaries is as follows:
Personnel Classifications 1970-71 1971-72
Positions Positions
No. Percent No. Percent
Administrative and Personnel 3 .33 3 .30
Instructional, K-12 506 55.79 555 54.63
Instructional, Adult Education 49 5.40 55 5.41
Other School Personnel 349 38.48 403 39.66
Total 907 100.00 1,016 100.00
(28) A summary of average daily membership (ADM) and teachers, as tabulated
by the Department of Education from information reported by the Board, and the
average of pupils per teacher is as follows:
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Grades ADM Teachers Average Pupils
Per Teacher
1970-71
1- 6 5,538 231 24.0
7- 9 2,547 119 21.4
10-12 1,498 88 17.0
1971-72
1- 6 5,539 246 22.5
7- 9 2,702 120 22.5
10-12 1,539 97 15.9
(29) The averages shown above were computed from principals' annual reports
of attendance, and the number of teachers shown reportedly does not include
teachers who are not assigned full time to a specific school, supervisors,
principals , librarians, guidance counselors, psychologists, and other non-
teaching personnel. It should be noted that the above are averages and are
not intended to be indicative of the number of pupils being taught by each
teacher at each class session.
(30) Salary schedules were adopted by the Board as required by Section
236.02(6), Florida Statutes, and Section 6A-1.52, Rules of the State Board
of Education; however, in some instances the salary schedules were not
adequate to explain the objective factors used for pay increments as required
by Section 6A-1. 52(2), Rules of the State Board of Education. It was also
noted that certain part-time employees were being paid on a full-time basis
prorated by the number of hours worked. The salary schedules adopted did
not provide for part-time employees to be paid on a prorated basis. The
salary schedules did not clearly distinguish the qualifications for the
various pay rates for the Community School Program instructional positions.
Except for the uncertainties noted above, salaries were paid in accordance
with the adopted salary schedules.
(31) Personnel records were maintained for all employees, but in some
instances the files did not contain adequate evidence of one or more of the
following:
1. Each factor used in calculation of each employee's compensation
as required by Section 6A-1.52, Rules of the State Board of
Education.
2. Verification of previous employment.
3. Dates of appointment and periods of employment as required by
Section 6A-1.69(1) , Rules of the State Board of Education.
4. Written qualifications and job descriptions for administra-
tive and noninstructional positions.
(32) Documents in each individual personnel file folder were not in
any sequence or in any sort of logical order. The correction of these
conditions would provide better control for and easier location of personnel
documents.
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(33) Section 231.29(2) , Florida Statutes, states in part that for the
purpose of improving the quality of instructional, administrative, and
supervisory services in the public schools of the State, the superintendent
shall establish procedures for assessing the performance of duties and respon-
sibilities of all instructional, administrative, and supervisory personnel employed
in his district. The records did not indicate that the principals and a number
of employees occupying supervisory positions were evaluated during the audit
period in compliance with this section of the Florida Statutes, nor were the
procedures and criteria for making the evaluation available for audit review.
(34) The Board obtained file cabinets having a locking device and bearing
a certified fire protection label for the protection of its personnel records.
(35) Contracts were issued by the Board to its employees where required
by law.
(36) Overtime wages were properly approved and appeard to be reasonable.
(37) Records of leave accrued and taken by employees were kept by the pay-
roll division and appeared to be complete and accurate. Leave granted was in
compliance with the Board's policies and the Rules of the State Board of
Education.
(38) Appropriate deductions were made from employees' salaries and,
together with the Board's matching payments, were remitted promptly. Voluntary
deductions were adequately supported by authorizations signed by the employees
affected.
(39) During the audit period the Board approved personnel actions as
required by Sections 230.23(5) and 230.33(7)(b), Florida Statutes.
Travel Expense
(40) The Board's policies for the payment of a per diem rate in excess
of that allowed by law, as discussed in audit report No. 7581, page 8, were
discontinued the latter part of 1970-71. However, a review of travel expendi-
tures incurred during 1970-71 revealed unauthorized or unsupported expenditures
in the amount of $583.75 prior to the policy correction. Improvement was noted
in this area during 1971-72; however, unauthorized travel expenditures in the
amount of $73.50 were incurred. The Board apparently did not attempt to
obtain support or reimbursements for the unauthorized and unsupported travel
expenditures as was recommended in the prior audit report.
(41) Improvements were made in the typical month's statements supporting
the monthly automobile allowances granted to the Board members, Superintendent,
and Board employees; however, a few statements indicated less mileage than
that required to support the allowance granted.
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Educational Improvement Expense
(42) The Board's plans for educational improvements were properly filed
with and approved by the Commissioner of Education as required by Section
236.07(6), Florida Statutes.
(43) During 1970-71, the Board received from the State for educational
improvement expenses $795,431 and expenditures were $989,333.26. During
1971-72, the Board received 5795,601 and expenditures were $870,173.88.
Separate subaccounts were maintained for expenditures made under the plan.
These subaccounts were for the purpose of control of the educational improve-
ment expense budget and to facilitate the reporting of expenditures.
Purchasing
(44) The responsibility for purchases of materials, supplies, and equipment
was centralized in a seperate purchasing department. Board and administrative
policies concerning purchasing were contained in a purchasing handbook which
was approved by the Superintendent.
(45) It appears that the Board generally complied with the legal require-
ments for purchases subject to bid; however, one possible exception was noted.
At its meeting on March 9, 1971, the Board awarded the purchase of a magnetic
record computer and a magnetic record reader to the Burroughs Corporation for
$25,363.68, plus a maintenance cost of $1,080 per year. This bid was stated
to be the lowest best bid. The low bidder on this computer was the National
Cash Register Company which submitted a bid of $22,267 plus a maintenance cost
of $1,555 per year. The National Cash Register Company's equipment did not meet
the specifications in the bid proposal requested by the Board, and in submitting
additional information to the Board regarding its bid, the company stated
"No manufacturer could meet your specifications except the manufacturer that
wrote them." Further investigation disclosed that the specifications in the
bid proposal had apparently been prepared by a representative of the Burroughs
Corporation and was almost identical to the Burroughs bid. In opinion No.050-43
(1949-1950 Biennial Report of the Attorney General, page No. 183) , the Attorney
General advised a board of county commissioners that if the specifications
. . had the clear effect of unduly limiting the field of possible competition,
they might be of questionable validity." The Board justified the acceptance
of the Burroughs Corporation bid as to the lowest best bid because its annual
maintenance cost was $1,080 , as opposed to the National Cash Register Company's
annual maintenance cost of $1,555. The Superintendent stated that a greater
memory capacity of the Burroughs machine over that quoted by the National
Cash Register Company was another justification for the bid award.
Insurance
(46) The Board's insurance coverage consisted of a school-college policy
which provided blanket coverage to both the School Board and the District
Board of Trustees, Florida Keys Community College, for the physical damage
to and loss of the use of real and personal property; standard workmen's compen-
sation; public employees bonds; scheduled property floater for band instruments;
group employee health and life insurance policies; and automotive insurance.
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(47) Contracts with Liberty Life Insurance Company for group employee health
and life insurance expired December 15, 1971. The Board continued to carry
its coverage with this company; however, no record was located to show that
a new contract or extension was signed for the continuance of the insurance.
(48) The employees' group insurance was the only insurance that was obtained
by bid. The Attorney General has ruled in opinion No. 058-325 that "Public
policy . . . dictates that insurance must be purchased by public boards with-
out favoritism and should be bought solely on the basis of securing the best
insurance protection available to meet the specific need at the least cost to
the taxpayer."
(49) Reimbursement from the District Board of Trustees of Florida Keys
Community College for its pro rata costs of the insurance policies had not
been calculated or requested by the District School Board as of the close of
the audit period.
(5n) Automotive insurance carried by the Board did not limit the liability
amounts for the bodily injury of transported pupils to $10,000 per person and
$5,000 times the rated seating capacity of each bus for any one accident as
required by Section 234.03(1) , Florida Statutes. Also, all vehicles wore
insured for the entire year whether used or not after the summer closing
of schools.
(51) The insurance register maintained by the Board appeared to be complete
and accurate.
(52) Insurance advice was provided to the Superintendent and the Board by
the Department of Education, local insurance agents, and its own employees.
Insurance premiums for 1970-71 were approximately $100,000 and were in excess
of $140,000 in 1971-72.
Investments
(53) The Board invested temporarily idle funds in interest bearing time
deposits. A tabulation showing interest income for 1970-71 and 1971-72 is as
follows:
Major Fund Group 1970-71 1971-72
Interest Income from Investments
Made Locally:
Operating Funds $ 87,288.81(1) 829,166.16(2)
Debt Service Funds 19,078.95 4,742.80
Capital Improvement Funds 31,034.90 33,300.28
Interest Income from Investment of
Board Funds Held by the State:
Debt Service Funds 7,665.63 7,551.48
Capital Improvement Funds 1,886.85 1,458.46
Total $146,955.14(1) $76,219.38(2)
Notes: (1) Includes $15,675 interest recorded as earned in 1970-71,
but not received until July 1971, from time deposits
which expired that month.
(2) Includes $3,208.24 interest recorded as earned in 1971-72,
but not received until July 1972, from time deposits
which expired that month.
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(54) Interest on time deposits was not computed and credited to the Board's
accounts quarterly, as required by Section 136.04, Florida Statutes.
(55) The Board placed time deposits on the basis of bids from qualified
depositories as required by Section 230.23(10)(k), Florida Statutes; however,
no evidence was found to indicate that the Board had investigated any form of
investments other than time deposits.
Budgets
(56) Budgets were prepared and adopted in compliance with applicable laws
and regulations.
(57) Budgets were generally followed. A summary of budgets for 1970-71
and 1971-72 is shown in the following tabulation:
1970 - 71 1971 - 72
Budgeted Actual Budget Budgeted Actual Budget
(As Reported) Difference (As Reported) Difference
Revenue
Operating Funds S 7,757,346.99 $ 7,845,604.31 $ 88,257.32 $ 9,104,519.42 S 9,289,057.84 S 164,238.42
Debt Service Funds 377,849.55 392,402.16 14,552.61 696,588.14 702,892.12 8,303.96
Capital Improvement Funds 2,051,750.04 2,064,019.72 12,269.68 892,560.37 930,667.81 38,107.44
Contracted Program Funds 279,000.14 278,824.24 -17.5.,60 438,507.03 ' 437,718.43 - Pc.60
Total Revenue 510,465,946.72 S10,580.850.43 $ 114.903.71 $11,132,474.96 S11,340,336.20 $ 207,861.24
Beginning Balances 3,493,503,86 3,475,503.86 -2d,000.00 3,842 313.87 3,842,313.67
Correction of Prior Years -U27.16 -017.1C 89,357.24 89.357-24
Total $13,955,450.56 $14,055,937.13 S 96,486.55 514,974,788.83 $15,272.007.31 S 297,218.48
Expenditures
Operating Funds $ 8,600,443.62 5 6,456,697.91 $ 143,745.91 $ 9,356,950.55 $ 9,291,263.09 5 65,667.46
Debt Service Funds 398,006.55 395,468.75 2,537,60 704,330.30 703,783.03 547.27
Capital Improvement Funds 3,305,594.43 1,118,053.32 2.187.541.11 3,131,091.33 2,700,466.23 430,625.10
Contracted Program Funds 384,637.26 243,303.28 141.333.98 574,259.76 299,345.76 279,914.00
Total Fxpend(tuaes $12.688,662.06 $10,213.523.28 $ 2,475,158.80 $13,771.631.94 S12,994,858.11 $ 776.773.83
Fading Balances 1,270,768.52 3,842,413.87 -2,571,6Li5.35 1,203,156.89 2,277,149.20 = 073,932.?f
Total 513,956,450.58 514,055,937.13 $ -96,U86.55 $14.974.788.83 $15,272,007.31 5 -2.7,212..2
Taxes
(58) Millages and taxes levied for school purposes on the 1970 and 1971
tax rolls are shown below:
12
Par.
No.
1970 1971
Mills Amount Mills Amount
Operating Funds:
Nonvoted School Tax 10.00 $3,258,222.71 8.30 $3,456,082.91
Debt Service Funds:
District Interest and Sinking .50 162,911.13 .50 208,321.66
Total 10.50 $3,421,133.84 8.80 $3,664,404.57
(59) Millages were within the amounts authorized by law.
Transportation
(6n) The midyear transportation report was substantially accurate; however,
improvements were needed in the accumulation of data summarized on the report.
Minor discrepancies were noted when the mileage shown on the midyear report
was compared with the mileage shown on the reports summarized by the bus
drivers.
(61) Bus drivers' reports (Form Tr-11) were on file and appeared to be
accurate; however, during 1970-71 most of the school bus schedules (Fcrm Tr-1)
were not located. The Principal's Annual Reports on School Transportation
(Form Tr-12p) for six schools were not available for audit and apparently were
not prepared. Improvements in the records were noted for 1971-72.
(62) The Board was granted $1,543 during 1971-72 as part of the total
transportation allocation from Minimum Foundation Funds for students transported
from basic education centers to vocational technical centers. A report of
pupils transported between high schools and vocational-technical centers was
not available for audit.
(63) Records on the maintenance cost of the Board's automotive eouipment
needed improvements. Numerous expenditures for the maintenance of buses and
trucks could not be traced to the records maintained for each vehicle. Activity
logs for vehicles to better control the use of automotive equipment were not
maintained. The Procedures for the purchase, storage, and issue of repair parts
were inadequate. Although a perpetual inventory system was set up for the
recording of repair parts when they were purchased, it was noted that a time
lag existed between the receipt of an item and its inclusion in the inventory,
and if a part was needed and used prior to recording in the inventory, it was
not recorded. Mechanics working on vehicles had direct access to the inventory
of repair parts. The Assistant Director of Transportation stated that a
physical inventory was never taken of repair parts. He estimated the value of
repair parts on hand at June 30, 1971, and June 30, 1972, at $5,000 and $8,300,
respectively. Steps should be taken to properly control the receipt, storage,
and issuance of these parts. In addition, the value of these parts should be
included in the Board's financial statements.
(64) Gasoline credit cards were kept at two different gas stations to
serve the Board's vehicles used in the Upper Florida Keys area. Custody of
these cards should have been assigned to Board employees. Instances were also
noted where gasoline was purchased from gas stations at prices which were
considerably higher than gasoline purchased by the Board at its bid price.
13
Par.
No.
(65) The Board charged $3 per hour plus the cost of gasoline and oil for
the use of buses for school activities other than transporting students to and
from school.
(66) A written plan for the systematic replacement of buses had not been
prepared; however, the Director of Transportation and Maintenance stated that
buses were replaced after ten years or 200,000 miles, whichever came first,
unless a bus's condition required replacement at an earlier date.
(67) The records supporting the reported average daily attendance of
transported students were generally adequate, except that records relating
to the transportation of students directly to vocational-technical school or
for students transported from high schools to vocational-technical school,
were not available for audit. The records kept to support the cost per mile
and total cost of transporting students, as reported in the annual financial
report, were adequate and accurate.
(68) The average daily attendance of transported students was as follows:
1970-71 1971-72
Average Daily Attendance
of Transported Students 3,663 3,891
(69) The cost per mile to operate school buses as reported by the Board
was as follows:
1970-71 1971-72
School Bus Operating Cost
per Mile $.3368 $.3982
(70) The costs used to obtain the cost per mile include the costs of
salaries, insurance, maintenance, and other operating expenses. The costs do
not include a pro rata cost of the purchase price of the buses.
(71) The total cost of transporting students as shown on the Board's
annual financial reports is as follows:
1970-71 1971-72
Cost of Transporting Pupils between
Home and School $211,858.82 $229,480.23
Cost of Transporting Pupils to
Other School Activities 7,178.29 27,630.76
Unallocated Breakage from Calculation,
not Reported by the Board 37.74 12.56
Total Expenditures for Pupil Transportation $219,074.85 $257,123.55
Compensation of Superintendent and Board Members
(72) The Superintendent was paid a salary that was 10% more than the cur-
rent salary of the highest paid employee, the Assistant Superintendent, as
authorized by Section 145.08(5) , Florida Statutes. During 1970-71 and 1971-72,
this amounted to $19,536 and $23,430, respectively.
14
Par.
No.
(73) The annual compensation of the Board members was $3,250 during 1970-71
and $3,500 during 1971-72, as provided by Section 145.041, Florida Statutes.
In addition to the annual compensation, the Chairman was paid an additional $50
each month as provided for in Section 145.131(1), Florida Statutes, and Chapter
57-611, Acts of 1957.
(74) Group insurance premiums authorized by Chapter 61-2502, Special Acts
of 1961, were paid for the Superintendent and Board members.
Community College Support
(75) During 1970-71 the Board remitted $89,466 to the District Board of
Trustees, Florida Keys Community College, as its required contribution to the
support of the College. This requirement was repealed by Chapter 70-94, Laws
of Florida, effective July 1, 1971.
Guidance Clinic of Florida Keys, Inc.
(76) The Board continued to make payments to the Guidance Clinic of the
Florida Keys, Inc. , as discussed in prior audit reports. At its meeting on
December 8, 1970, the Board approved the increase in contribution to the
Clinic to an annual payment of $17,000 beginning in January 1971. The Board
paid a total of $13,000 and $17,000 during the 1970-71 and 1971-72, respectively.
Under the provisions of Chapter 67-1728, Special Acts of 1967, the Monroe
County Board of County Commissioners is authorized to appropriate and pay up
to $10,000 annually to this same organization from county funds.
(77) The Board was still not receiving itemized invoices to support pay-
ments to the Clinic, and no receipt acknowledgements by Board personnel of
services received were found. The Clinic did provide a report of its activities
for the year; however, it was not detailed as to actual dates and names of
students counseled and did not provide a basis for the fees paid.
(78) I do not know of any legal authority which authorizes the Board to
provide medical services to students other than the services stipulated in
Sections 232.29 through 232.32, Florida Statutes, which are primarily the
responsibility of the State Department of Health and Rehabilitative Services
through the County Health Unit.
Monroe County Health Unit
(79) The Board entered into agreements with the Monroe County Health Unit
whereby the Unit was to render medical services to school children and Board
employees for an annual remuneration of $15,000 and $17,000 during 1970-71
and 1971-72, respectively. As previously mentioned in audit report No. 7581,
page 10, the Attorney General in his opinion No. 052-305, dated November 5,
1952, stated the conditions that must be met before such payments would be
legal. A report was submitted by the Health Unit during 1971-72 stating the
specific services to be rendered to the Board; however, vouchers or statements
that the agreed services had been performed were not submitted during the two
years under audit.
15
Par.
No.
Payments to U. S. Navy for Utilities
(80) Advance payments to the U. S. Navy for utilities were recorded as
expenses rather than shown as assets in the Board's accounts and subsequently
adjusted for expense charges as they occurred. Statements showing the trans-
actions and expenditures involved were furnished at various times by the Navy.
At June 30, 1971, a total of $8,535.18 was on deposit with the U. S. Navy for
advance utility payments at Sigsbee Elementary School and the vocational-tech-
nical center located at the Naval Station Annex which had been recorded as
operating expense. The amount of this deposit was applied to utility charges
totaling $9,126.01 during 1971-72. There were no deposits with the U. S. Navy
at June 30, 1972.
Purchases and Resale of Supplies, Vocational-Technical and Adult Education
(81) The lack of proper procedures and practices regarding the Vocational-
Technical and Adult Education, as discussed in audit report No. 7581, page 14,
had generally continued in the current audit period even though minor
improvements were noted.
(82) Perpetual records were maintained by the Director of Vocational-
Technical and Adult Education for books purchased for resale to students.
Improvements were needed in the procedures used to maintain these records.
Specific purchases and resale of books could not be identified to the records.
(83) During 1971-72 procedures were established to issue receipts to
students for the purchase of books and payment of registration fees; however,
these procedures were not adequate to maintain a proper control over collections.
(84) In addition to basic instruction, the students, teachers, and others
were permitted to bring personal items to be repaired in class as part of the
students' learning process. Payments were received for repair parts and
labor charged to others and were deposited in internal funds to be used for
future support of the program.
(85) As mentioned in audit report No. 7581, page 14, outboard motors
acquired from the U. S. Navy through the State's Division of Federal Surplus
Property had not been included on the property records. Action still had not
been taken to include these items on the records.
(86) The Board's finance director stated that the acceptance of most of
the donations had been halted during the audit period, and those that were
accepted as having value to the program were presented to the Board.
(87) Information was furnished by both the Board's finance director and
the Director of Vocational-Technical and Adult Education that, as a result of
the prior audit findings, guidelines, policies, and procedures were being worked
out for these areas.
(88) Although the amounts paid for books purchased for resale were properly
recorded in the account which would provide the net cost of other programs, the
revenue from the sale was recorded as miscellaneous revenue. This procedure
did not provide the true net cost of other programs.
16
Par.
No.
INTERNAL CONTROL AND RECORDS
(89) Internal control generally appeared to be adequate; however, some
deficiencies were noted. The duties regarding cash collections were such that
the same person received collections, wrote receipts, prepared the deposits,
and reconciled the bank accounts. These duties should be separate to the extent
possible so that the work of one individual acts as a check on the work of
another. In addition, a list of receipts was not prepared for collections
received in the mail.
(90) Warrants, except those used for payrolls, were not prenumbered by the
printer. The voucher form in use was prenumbered; however, the warrant number
had to be added by machine to the warrant in the preparation process.
(91) Payroll warrants continued to be signed by the use of facsimile sig-
nature plates. During 1971-72 control of the plates as well as the check-
signing machine was transferred from the payroll section to the accounting
section; however, access to the signature plates and keys to the machine was
not sufficiently limited to provide good internal control.
(92) The deficiencies noted in the internal controls over materials and
supplies inventories and the related records and procedures were discussed under
the heading FINANCIAL CONDITION with additional information regarding repair
parts discussed under the transportation section of FINANCIAL OPERATICNS.
(93) As reported in audit report No. 7581, page 16, an accounting proce-
dures manual had not been prepared by the finance department, showing in writing
the detailed functions and responsibilities of each fiscal position.
(94) The financial records of the Board were generally well kept, adequate,
and properly balanced. The records, in most instances, were properly supported
by source documents; however, it was noted that payments to vendors for airline
tickets were not adequately cross-referenced to travel vouchers. Invoices from
vendors were not stamped "Paid" or otherwise marked to avoid duplicate payments.
(95) Subsidiary records were found to be in agreement with summary accounts,
and controls over source documents appeared to be adequate to ensure that all
transactions were accurately recorded.
(96) Annual financial reports were timely prepared.
(97) Evidently due to typing and proofing errors, $84,377.62 withheld by
the State Board of Education for servicing bonds, $31,719.98 in driver educa-
tion program funds from the State, and $6,386 in other expenses for maintenance
of plant from Contracted Program Funds were shown on the annual financial report
for 1971-72 as Capital Outlay and Debt Service Funds distributed to districts,
State Forest Fund receipts, and expenditures for heating and cooling of build-
ings, respectively. Except for the $6,386 amount, these errors do not affect
the total amounts reported in the financial statements on exhibit B.
(98) The Board minutes were generally well kept, adequately indexed, and
currently typed. The minutes appeared to show all official actions of the
Board.
(99) Comments concerning deficiencies noted on the records maintained for
tangible personal property are made under the heading GENERAL FIXED ASSETS.
17
Par.
No.
OPERATING FUNDS
(100) This group of accounts was used to account for all revenue that was
available for the current operating expenses of the school district with the
exception of revenue specifically earmarked to be accounted for in other fund
groups.
(101) Specific comments regarding various activities financed by the
Operating Funds are included in the sections of this report under the headings
FINANCIAL OPERATIONS and INTERNAL CONTROL AND RECORDS.
(102) No major new programs were undertaken during the year.
DEBT SERVICE FUNDS
(103) This fund group was used for the purpose of accounting for revenue
earmarked for the retirement of State Board of Education bonds, local bond
issues, and revenue certificates.
(104) The individual funds in this group were:
1. State Board of Education Bond Issues, A and B Fund
2. Certificate of Indebtedness Fund
3. Racetrack Reserve Fund
4. Interest and Sinking Fund
(105) The reserve balance in the Certificate of Indebtedness Fund totaled
$134,403 at June 30, 1971, which was $708 short of the $135,111 required.
Except for this, the reserve requirements of each fund were met and the required
payments were promptly made.
CAPITAL IMPROVEMENT FUNDS
(106) The funds included in this group were used to account for State and
local revenue that is restricted for the purchase of capital outlay items and
Federal revenue that the Department of Education directed to be recorded in
this fund group.
(107) Individual funds were maintained to allow proper accounting for the
revenue restrictions.
(10R) The Board generally complied with laws and regulations pertaining to
Capital Improvement Funds. Section 235.31(1), Florida Statutes, states that
bids must be requested for all construction projects, but school boards may
elect to construct projects costing $20,000 or less on a day labor basis.
During the audit period the Board spent more than $20,000 each on three projects
constructed by the Board's maintenance personnel. Also, change orders on four
projects were not located for audit. This involved seven change orders
totaling $22,672.20.
18
Par.
No.
(109) The following tabulation shows the accounting for funds for capital
outlay purposes derived from the only bond issue for which there were proceeds
on hand during the current audit period:
State Board of
Education Bonds
Dated 6-1-62
Receipts
Proceeds $750,000.00
Interest 27,376.45
Total Receipts $777,376.45
Expenditures
Prior Periods $745,871.74
Audit Period 30,004.50
Total Expenditures $775,876.24
Balance, June 30, 1972 $ 1,500.21
(110) The Board's maintenance department was responsible for a major
portion of the building and remodeling projects during the year. Controls over
the materials purchased and used in these projects needed major improvements.
Controls over the issue of materials also appeared weak, as was stated under
the heading FINANCIAL CONDITION.
(111) During the audit period four major capital outlay projects were
completed. The following tabulation shows estimated and actual costs to complete
these projects:
Capital Outlay Projects
Coral Shores Key Largo Glynn Archer Stanley
Reconstruction Elementary Shower Switlik
Facilities Elementary
Estimated Cost $226. 380.00 $1,003,200.00 $ 80,825.00 81, 003,200.00
Actual Cost:
Capital Improvement Fund $292,306.35 $ 59,835.76 $116. 158.00 $ 536, 518.81
Section 237.27 Loan Fund 178. 156.54 612,776.94
Capital Outlay and Debt
Service Fund 365,624.30 56, 111.33
Monroe County School
Construction Fund 544, 142_00
Total Actual Cost $292,306.35 $1, 147,758.60 $116, 158.00 $1, 205,407.08
Gross Square Footage 12,500 55,329 5,000 52,057
Cost Per Square Fool $23.38 S20.74 S23.23 $23.16
19
Par.
No.
CONTRACTED PROGRAM FUNDS
(112) This group of funds was used in accounting for all revenues which were
received from the Federal Government, either directly or through the State, and
from philanthropic sources, which were restricted for specific purposes other
than the general current expenses of the school district, and which were not
directed to be recorded in the Capital Improvement Funds.
(113) A total of 56 individual funds were maintained in this fund group
during the fiscal year 1971-72, an increase of approximately 43.6% from the
1970-71 fiscal year total of 39 projects. Of the individual funds, all but two
were created from Federal funds received through the State. Of the two not
received through the State, one was the Neighborhood Youth Corps project funded
directly by the Federal Government as discussed under the heading FINANCIAL
OPERATIONS. The other fund was a project funded by the Mott Foundation through
Florida Atlantic University to establish five demonstration programs in
community education.
(114) Numerous instances were noted where expenditures were made in excess
of budgeted amounts or for items not budgeted before budget amendments were
approved by the Department of Education.
(115) During the fiscal year 1970-71, the Board did not approve eight
Vocational-Technical and Adult Education projects submitted to the Department
of Education until the Department's approval had been received. Improvement
was noted in this area during the fiscal year 1971-72, as all projects were
approved by the Board prior to submission to the Department of Education.
(116) A total of $977.28 and $485.40 during 1970-71 and 1971-72, respec-
tively, was charged to Contracted Program Funds as the pro rata share of
transportation expenses.
(117) Expenditures were generally authorized and properly approved by the
terms of the grant. Improvements were needed in the procedures and controls
exercised over expenditure vouchers as discussed under the headings FINANCIAL
OPERATIONS and INTERNAL CONTROL AND RECORDS.
GENERAL FIXED ASSETS
(118) The purpose of this group of accounts is to account for the cumulative
cost of capital outlay items owned by the Board.
(119) Except for a 9.87 acre parcel of land located on Big Pine Key valued
on the Board's books at $10,000 which was sold for $18,500 in 1970-71, the
amounts recorded for land and buildings appeared to be complete and accurate.
Subsidiary accounts and an historical record book was kept for each site, in
addition to a general ledger control account as support for the balances shown
for land and buildings. however, the control account for land was not reduced
by $10,000, the original cost of the land sold. Therefore, the value of the
land shown on the balance sheet is overstated by that amount. The increases
in the land and building accounts during the year were reconciled with the
expenditures for them.
20
Par.
No.
(120) The subsidiary records maintained for motor vehicles were adequate
to identify the vehicles owned by the Board. The increase in this account
reconciled with the expenditures recorded for motor vehicles.
(1211 As reported in audit report No. 7581, pages 19 through 21, the subsi-
diary records for furniture and equipment needed improvements.
(122) In several areas the Board did not comply with the provisions of
Chapter 274, Florida Statutes, and the rules issued pursuant thereto. The
property records did not contain names of custodians, dates of inventories,
and conditions of items when inventoried. Property numbers had not been
assigned to most rifles or to band instruments. The property records did not
show the complete record of property dispositions such as the date of sale, to
whom the property was sold, amounts received, and receipts numbers. The dispo-
sition dates in the property records were the dates of Board approvals instead
of the dates of disposition. The actual dates for dispositions could not be
determined due to the lack of such information in the records.
(123) The time delay between the acquisition of property and its addition
to the property records and tagging, as mentioned in the prior audit report,
continued in the current audit period.
(124) Rules issued pursuant to Chapter 274, Florida Statutes, require that
purchases of surplus property be recorded at its actual value at the time of
acquisition. During the audit period the Board purchased three one-half ton
cargo trucks from the Division of Federal Surplus Property at a service charge
of $100 for each truck. The value of these trucks was estimated to be: $500
each by the Assistant Director of Transportation; however, they were recorded
on the property records at the acquisition cost of $100.
(125) The transportation charges included in the acquisition of property
were not consistently recorded in the acquisition cost of property items. In
addition, no reconciliation was made between the increase in the furniture and
equipment account during the audit period and the capital outlay expenditures
recorded for that period.
(126) The deficiencies noted in audit report No. 7581, page 20, regarding
the records and procedures for the inventory of tangible personal property
continued in the current audit period. A complete inventory of the Board's
property was still not being conducted annually. It was noted that some items
apparently had not been inventoried within the past four years. All of the
required information regarding inventories was not being recorded on the
property cards. Proper follow-up procedures for unlocated property were not
in effect. No evidence was found that motor vehicles were being inventoried.
(127) A physical observation of a number of property items disclosed that
one item, a circular hand saw, was located at the home of the instructor. The
Board's policy No. 4.5.1(11) states that equipment shall not be lent to an
individual. In addition, items not located by the Board's personnel for the
auditor's observation were as follows:
21
Par.
No.
Description Property Original
Number Cost or
Value
Trampoline 20702 $566.00
Lawn Mower 19" Toro 27449 81.96
Edger, Clinton 50971 85.00
(128) Expenditure vouchers for property acquired still did not contain the
property numbers assigned to the items acquired.
(129) As was discussed in audit report No. 7581, page 21, there was no
record that the Board made determinations to establish the values for a number
of items authorized by it to be sold or for other disposition.
(130) On August 11, 1970, the Board authorized the removal from the property
records those items destroyed in the fire at a school in November 1969.
(131) Target rifles, scopes, and bullet traps owned by the Board were
located at the Key West High School when a physical inspection was made by the
auditor on August 25, 1971.
BONDED AND DEFERRED DEBT AND INTEREST
(132) This group of accounts was used to account for long-term liabilities
and to show the amounts available at present and to be provided in the future
for the retirement of these debts.
(133) During 1970-71 the Board obtained three loans totaling $793,000 under
the provisions of Section 237.27, Florida Statutes. The loans were obtained
for the construction of two new elementary schools, one at Key Largo and one
at Marathon.
(134) The individual long-term debts outstanding at June 30, 1971, and
June 30, 1972, as summarized in the Board's annual financial reports, were as
follows:
June 30, 1971 June 30, 1972
Total Principal Interest to Total Principal Interest to
Maturity Maturity
State Board of Education Bonds:
Issue Dated June 1, 1955 S 200,942.50 S 185.000.00 $ 15,942.50 $ 160,780.00 S 150,000.00 $ 10,780.00
Issue Dated June 1, 1962 608,670,00 ,500,000.00 108,670.O0 557,030,00 465.000.00 92,030,00
District Bonds Dated August 1, 1955 1,076, 190.00 990,000.00 86,190.00 859,692.00 804.000.00 55,692.00
Special Act, Certificates of
Indebtedness Dated June 1. 1966 2,105,612.50 1,330,000.00 775,612.50 2,000,981.25 1,290,000.00 710,981.25
Loans Authorized by Section 237.27,
Florida Statutes 902.037.50 793,000.00 109,037,50 660,202.50 594,750.00 55,452.50
Total $4,893,452.50. $3,798,000.00 $1,095,452.50 $4,238,635.75 $3,303,750.00 $934,935.75
22
Par.
No.
(135) A debt totaling $70,000 at June 30, 1971, and $55,000 at June 30,
1972, was not included in the Board's annual financial reports. This debt is
discussed in detail under the heading FINANCIAL CONDITION.
(136) General ledger accounts were established during the audit period for
the amounts reported on the annual financial reports.
(117) All bond and interest maturities during the audit period were paid on
a current and timely basis and none were delinquent.
(138) Bond registers and other documents were well kept to support payments,
bond and coupon cancellations, and amounts outstanding.
INTERNAL FUNDS
(139) The Board, pursuant to Section 237.02(9), Florida Statutes, had
policies that prescribed the principles and procedures to be followed in the
administration and control of all local school funds derived by any school from
all activities including the school lunch program, or from any other source.
The Board's policies were also consistent with regulations adopted by the
State Board of Education.
(140) The Board was required by Section 6A-1.67(2), Rules of the state
Board of Education, to provide for an audit of the internal funds by a qualified
auditor or auditors; therefore, the audit of these funds was not included in
the scope of this examination.
(141) Reports prepared after June 30, 1971, and June 30, 1972, by a local
certified public accountant were on file for all the internal funds. No
deficiencies were noted in these reports.
STATEMENT FROM AUDITED OFFICIAL
(142) In accordance with the provisions of Section 11.45(6) (d) , Florida
Statutes, 1972 Supplement, a list of audit findings was submitted to the
District School Board. The Superintendent's response to the list of audit
findings is shown on exhibit C.
23
EXHIBITS AND SCHEDULES
The exhibits and schedules attached to this report for the fiscal
years ended June 30, 1971, and June 30, 1972, are listed in front of the state—
ments for each period. They form an integral part of this report.
Respectfully submitted,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit supervised by:
(Signed) Willard G. Hale
Audit made by:
(Signed) A. Fornaguera
24
EXHIBITS AND SCHEDULE
The following exhibits and schedule are attached hereto for the
fiscal year ended June 30, 1971:
EXHIBIT - A Combined Balance Sheet.
SCHEDULE 1-A Statement of Changes in Reserves and Fund Balances.
EXHIBIT - B Statement of Revenue and Expenditures.
25
EXHIBIT - A MONROE COUNTY
DISTRICT SCHOOL BOARD
COMBINED BALANCE SHEET
June 3o, i972
To-AL OFERATINc
FUNDS
ASSETS AND OTHER DEBITS
Assets - Other Than Fixed:
Cash $ 3, 596, 761. 44 S1, 033, 162. 92
Accounts Receivable 97, 362. 84
State Board of Education Bond Reserve 105, 550. 63
Material Stores Inventory 42, 738. 9E 42, 738. 96
Fixed Assets: 1, 387, 676.64
Land
Buildings 10, 751, 762. 87
Motor Vehicles 474, 964. 83
Furniture and Other Equipment 1, 431, 175. 01
Other Debits:
Amount Available for Debt Service 387, 228. 30
Amount to be Provided for Debt Service 4,506, 224. 20
TOTAL $22, 781, 445. 72 S1 , 075, 901. 88
LIABILITIES, RESERVES. AND FOND BALANCES
Liabilities:
Section 237, 27 Loans Payable to Banks $ 793, 000. 00 $
Bonds Payable:
State Board of Education Bonds 685, 000.00
District Bonds 990, 000. 00
Special Act 1, 330, 000. 00
Interest Payable in Future Years:
State Board of Education Bonds 124, 612. 50
District Bonds 86, 190. 00
Special Act 775, 612. 50
Section 237. 27 Loans 109, 037. 50
Total Liabilities $ 4, 893, 452. 50 $ -
Reserves and Fund Balances:
Reserve for Encumbrances $ 2, 219,428. 17
Reserve for Long-term Debt Service 387, 1228.30
Reserve for Future Capital Outlay 66, 867. 72
Reserve for Future Expenditures from
Federal Aid Allotments 92, 987. 80
Investment in Fixed Assets 14, 045, 579.35
Unappropriated Fund Balances 1 , 075, 901. 88 1, 075, 901. 88
Total. Reserves and Fund Balances $17, 887, 993. 22 $1, 075, 901. 88
TOTAL $22, 781, 445. 72 $1, 075, 901. 88
,i F.HI Bi 1' - A
26
EXHIBIT - A
DEBT CAPITAL CONTRACTED GENERAL BONDED AND
SERVICE IMPROVEMENT PROGRAM FIXED DEFERRED DEBT
FUNDS FUNDS FUNDS ASSETS AND INTEREST
$281, 677. 67 $2, 236, 673. 60 $ 45, 247. 25 $ S
1, 857. 36 95, 505. 48
105, 350. 63
1, 387, 676. 64
10, 751, 762. 87
474, 964. 83
1, 431, 175. 01
337, 228. 30
4, 506, 224. 20
$387, 228. 30 $2, 238, 530. 96 $140, 752. 73 $14, 045, 579. 35 S4, 893, 452. 50
S $ $ $ $ 793, 000. 00
685, 000. 00
990, 000. 00
1, 330, 000. 00
124, 612. 50
86, 190. 00
775, 612. 50
109, 037. 50
$ - - $ - - S - - $ - - $4, 893, 452. 50
$ 82, 171, 663. 24 $ 47, 764. 93 $ $
387, 228. 30
66, 867. 72
92, 987. 80
14, 045, 579. 35
$387, 228. 30 $2, 238, 530. 96 $140, 752. 73 $14, 045. 579. 35 $ - -
S387, 228. 30 $2, 238, 530. 96 6140, 752. 73 $14, 045, 579. 35 $4, 693, 452. 50
ART SIT - 9
27
SCHEDULE 1-A MONROE COUNTY
DISTRICT SCHOOL BOARD
STATEMENT OF CHANCES IN RESERVES AND FUND BALANCES
For the Flscat Year Ended June go, 1E71
TOTAL
Reserves and Fund Balances, July 1, 1970 $16, 389, 887, 25
Add:
Excess ( Oef:clenry' of Revenue Over Expenditures 367, 327, 17
Net Increase in Fixed Assets 1, 131, 195. 96
Adjustments to Close Prior Years Projects
Reserves and Fund Balances. June no, 1971 $17, 887, 993. 22
.SC;1ZED4i:;P r ,i
28
SCl/EDDL6 1-A
OPERATING DEBT CAPITAL. CONTRACTED GENERAL
FUNDR SERVICE IMPROVEMENT PROGRAM F' XED
FUNDS FUNDS FUNDS ASSETS
$1, 686, 995. 48 $390, 294. 89 $1, 292, 576. 37 $105, 637. 12 $12, 914, 383. 39
6 r., 023. 60 -g ob 6.59 945, 966. 40 35, 520. 96
1, 131, 195. 96
- 1.81 -405-35
$1, 075, 901.88 $387, 228. 30 $2, 238, 530. 96 $140, 752. 73 $14, 045, 579. 35
STEED('LE 1-A
MONROE COUNTY 1:XHIBIT — B
DISTRICT SCHOOL BOARD
STATEMENT OF REVENUE AND EXPE,YDITURFS
For the Fiscal Year Ended June go, Igyl
Total Operating Debt Capital Contracted
Funds Service Improvement Program
Funds Fur Funds
Revenue:
Federal Sources $ 535.020.89 $ 535,020,89 $ $ $
State Sources.
State 4.325.284.90 3,949,375.72 218,239.70 157.669.48
Federal Money Received
Through the State 313.503.54 123,870.42 7,548.76 262.084.36
Local Sources 3.453.272.12 3.237.337.28 174.162.46 31,772.38 10,000.00
Iota/ $ 8,707,081.45 $7.845,604.31 S392,402.16 $ 196,990.62 $272,084.36
Nonrevenue 795,468.00 795,468.00
Incoming Transfers 1,078,300.98 1,071,561.10 6,739.88
oral $10.580,850.43 59,845,609.31 $392,402.16 $2,064,019.72 51.98.824.24
Expenditures:
System-wide Administration $ 205,806.79 $ 205.806.79 $ S $
Instruction 5,385,860.23 5,237,646.16 148.214.07
Operation of Plant 548.992.10 548.992.10
Maintenance of Plant 391,625.10 384,809.10 6,616.00
Auxiliary Services 407.888.7G 405,261.48 2.827.28
Fixed Charges 512,132.99 496,552.52 6,843.21 8,737.26
Community Services and
Nonprogram Schools 21,575.49 9.377.36 12,198.13
iota/ c.rrent Experses $ 7.473.881.46 $7,288,445,51 $ 6,843,21 S - - S178,592.74
Capital Outlay 1,182,763.86 1,118,053.32 64.710.54
Debt Service 388,625.54 388,625,54
Remittmices to Other Districts
and Agencies 89,951.42 89,951.42
Outgoing Transfers 1,078,300,98 1,078,300.98
Total $10,213,523.26 $8,456.697.91 $395,468.75 $1,118,053.3: $243,303.28
Excess !Deficiency) of Revenue
Over Expenditures $ 367,327.17 $ —611,023.60 S -2,066.5.9 $ 945,966.41 S 35,520.96
EXHIBIT - B
30
EXHIBITS AND SCHEDULE
The following exhibits and schedule are attached hereto for the
fiscal year ended June 30, 1972:
EXHIBIT - A Combined Balance Sheet.
SCHEDULE 1-A Statement of Changes in Reserves and Fund Balances.
EXHIBIT - B Statement of Revenue and Expenditures.
EXHIBIT - C Statement from Audited Official.
31
EXHIBIT — A MONROE COUNTY
DISTRICT SCHOOL BOARD
COMBINED BALANCE SHEET
June go, 1972
TOTAL OPERATING
FUNDS
ASSETS AND OTHER DEBITS
Assets - Other Than Fixed:
Cash $ 1 ,873, 749. 84 $1,019,621. 29
Accounts Receivable 149 ,445. 61
Due from Other Funds 24 ,000. 00
State Board of Education Bond Reserve 105, 436. 48
Material Stores Inventory 148 ,517. 27 148 ,517. 27
Fixed Assets:
Land 1, 527 ,393.89
Buildings 12,851, 262. 19
Motor Vehicles 515, 400. 13
Furniture and Other Equipment 1,693, 580. 51
Other Debits:
Amount Available for Debt Service 386, 337. 39
Amount to be Provided for Debt Service 3,852 ,348. 36
TOTAL 823,127,471. 67 $1 , 168, 138. 56
LIABILITIES, RESERVES, AND FUND BALANCES
Liabilities:
Section 237. 27 Loans Payable $ 594,750. 00 $
Due to Other Funds 24 ,000. 00 24 ,000. 00
Bonds Payable:
State Board of Education Bonds 615,000. 00
District Bonds 804 ,000. 00
Special Act 1 ,290 ,000.00
Interest Payable in Future Years:
State Board of Education Bonds 102 ,810. 00
District Bonds 55,692.00
Special Act 710,981. 25
Section 237. 27 Loans 65, 452. 50
Total Liabilities $ 4,262,685. 75 $ 24,000. 00
Reserves and Fund Balances:
Reserve for Encumbrances $ 251 ,326. 40 $ 39 ,359. 69
Reserve for Long-term Debt Service 386 ,337. 39
Reserve for Future Capital Outlay 344, 414. 84
Reserve for Future Expenditures from
Federal Aid Allotments 190, 291. 70
Investment in Fixed Assets 16 ,587 ,636. 72
Unappropriated Fund Balances 1 , 104,778. 87 1 , 104,778. 87
Total Reserves and Fund Balances $18,864,785. 92 $1 , 144, 138. 56
TOTAL $23, 127 ,471. 67 $1, 168 , 138. 56
EXHIBIT — A
32
EXHIBIT - A
DEBT CAPITAL CONTRACTED GENERAL BONDED AND
SER VICE IMPROVEMENT PROGRAM FIXED DEFERRED DEBT
FUNDS FUNDS FUNDS ASSETS AND INTEREST
$280,900. 91 $442,715. 18 $130 ,512. 46 $ $
1,940. 40 147 , 505. 21
24,000. 00
105 ,436. 48
1 ,527 ,393. 89
12,351 , 262. 19
515, 400. 13
1 ,693 , 530. 51
386 ,337. 39
3 ,852,348. 36
$386 , 337. 39 $468 ,655. 58 $278 ,017. 67 $16 ,587 ,636. 72 $4, 238 ,685. 75
$ $ $ $ $ 594 ,750. 00
615,000, 00
804 ,000. 00
1,290 ,000.00
102, 810. 00
55,692. 00
710 ,981. 25
65 ,452. 50
$ - - $ - - $ - - S - - $4, 238,685. 75
$ $124, 240. 74 $ 87 ,725. 97 $ $
386, 337. 39
344, 414. 84
190 ,291. 70
16, 587 ,636. 72
$386, 337. 39 $468, 655. 58 $278, 017. 67 $16 ,587,636. 72 $ - -
$386 ,337. 39 $468,655. 53 $278,017. 67 $16 ,587,636.72 $4, 238 ,685.75
EXHIBIT - A
33
SCHEDULE i-A MONROE COUNTY
DISTRICT SCHOOL BOARD
STATEMENT OF CHANGES IN RESERVES AND FUND BALANCES
For the Fiscal Year Ended June 3c, 1972
TOTAL
Reserves and Fund Balances , July 1 , 1971 $17, 887 ,893. 22
Add:
Excess (DeficiencyI of Revenue Over Expenditures -i,654 ,521 .9i
Net Increase in Fixed Assets 2 ,542 ,057. 37
Adjustments to Close Prior Year' s Projects -1, 184 . 69
Adjustments to Fund Balance 90,541. 93
Reserves and Fund Balances, June 32, 1972 S18, 864 ,785. 92
Note: (1) Adjusted by $100 for correction of prior year' s fund balance.
SCHEDULE i-A
34
SCHEDULE 1-A
OPERATING DEBT CAPITAL CONTRACTED GENERAL
FUNDS SERVICE IMPROVEMENT PROGRAM FIXED
FUNDS FUNDS FUNDS ASSETS
$1,075 ,801. 88( 1) $387 , 228. 30 $ 2 ,238 ,530. 96 $140, 752. 73 $14 .045 ,579. 35
-22,209.25 -890. 91 -1,769,798.42 138,372. 67
2 ,542 ,057. 37
-76.96 -1, 107.73
90, 541. 93
$1 .144 , 138. 56 8386 ,337. 39 $ 468 ,655. 58 8278 ,017. 67 816 , 587, 636. 72
SCHEDULE 1-A
EXHIBIT - B MONROE COUNTY
DISTRICT SCHOOL BOARD
STATEMENT OF REVENUE AND EXPENDITURES
For the Fiscal Year Ended June 3o, 1972
Total Operating Debt Capital Contracted
Funds Service Improvement Program
Funds Funds Funds
Revenue:
Federal Sources $ 1,363,558.44 $1,256.038.44 $ $ 8107,529.00
State Sources:
State 4,868,172.74 4,399,471.27 221,929.10 246.772.37
Federal Money Received
through the State 475,446.10 145.167.23 14.786.37 315.492.50
Local Sources 3,718,777.17 3,461,917.63 208.919.02 34,603.12 13,337.40
Tota! 610,425,954.45 S9(262,594.57 $430,848.12 $ 296,161.86 $436,349.90
Nonrevenue 17,180.21 17,180.21
Incoming Transfers 897,201.54 6,463.27 272.044.00 617.325.74 1,369.53
Total 611,340,336.20 $9.269.057.84 $702,892.12 $ 930,667.81 $437,718.43
Expenditures:
System-wide Administration $ 245.069.93 $ 244.809.22 $ $ $ 260.71
Instruction 6,155,406.46 5,986,827.41 168,579.05
Operation of Plant 626,420.22 620,034.22 6,385.00
Maintenance of Plant 506,658.94 506,658.94
Auxiliary Services 484,883.82 482,414.42 2,469.40
Fixed Charges 690,985.68 670,235.73 8,778.42 11,971.53
Community Services and
Nonprogram Schools 33,239.69 18,011.22 15.228.47
Total Current Exjenses $ 8.742.664.74 $8,528,991.16 $ 8,778.42 $ - - $204,895.16
Capital Outlay 2,698,453.56 2,604,002.96 94,450.60
Debt Service 656,499.87 656,499.87
Remittances to Other Districts
and Agencies 38.40 38.40
Outgoing Transfers 897,201.54 762,233.53 38 ,504.74 96,463.27
Total 612.994.058.11 $9,291,253.09 $703,783.03 $ 2,700,466.23 $299,345.76
Excess (Deficiency) of Revenue
Over Expenditures $-1,65V,521.91 $ -22,205.25 $ -890.91 $-1,769,799A2 $138,372.67
EXHIBIT - B
36
MONROE COUNTY EXHIBIT - C
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
July 1 , 197o to June 3o, 1972
OFFICE OF
GLYNN R. ARCHER. JR. lPrtsbm of 1Fe iTloaed
Aa.rr. SUPT. FOR g1t37£rlltt£Itlo£ltt of gtfrools DISTRICT NO. I
ADMINISTRATION MONROE COUNTY ROBERT A. DION
NED A. SIMMONS nest,
.y DISTRICT NO. 2
ASSN. SUPT. FOR BD 3tt5t, 'JI1DCnba ENOCH H.WALKER
ELEMENTARY INSTRUCTION VICE.CHAIRMAN
DISTRICT NO. 9
ARMANDO J. HENRIOUEZASSN. SUPT. FOR svDN EY E. MATHEWS
SECONDARY INSTRUCTION SUPERINTENDENT DISTRICT NO. 4
HILARY
WILHELMINA G. HARVEY
L BOARD RD HY TTV R NFY DISTRICT NO. 5
SCHOOL RUTH ALICE CAMPBELL
RAMONA L. KNIGHT CHAIRMAN
DIRECTOR OF In"R"
JOSEPH L. CATES
DIRECTOR OF MAINTENANCE
LOUIS R. ADAIR
DMECTOROFFERSONNEL
July 19, 1973
Mr. Ernest Ellison
Auditor General
State of Florida
Tallahassee, Florida 32304
Subject: Preliminary Audit
July 1, 1970 to June 30, 1972
Dear Mr. Ellison:
Thank you for the opportunity to comment on the list of preliminary
and tentative audit findings which apply to the period of July 1,
1970 to June 30, 1972.
Attached is a statement of explanation concerning all of the find-
ings and what we propose to do to correct same.
Sincerely,
A. J. Henriquez
AJH/vm
Encl.
EXHIBIT - C
(Continued)
37
EXHIBIT - C MONROE COUNTY
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
July 3, 197o to June 3o, i 972
Audit Report
Paragraph
Number
(5) The Board no longer maintains a separate bank account for FICA taxes.
As recommended, this account is incorporated into the Board's financial
records.
17) The Stores and Distribution Warehouse has outlined inventory instruc-
tions and established inventory dates for inventories to be taken.
(7) The S & D Warehouse uses the OS&D Report to adjust discrepancies in
stock control records. Differences between physical count and recorded
balances are adjusted by verification of correct physical count and recorded
balances. This information is recorded on inventory adjustment report and
vouchered and differences posted so that recorded balances agree with stock
count.
(7) The conditions as outlined in paragraph four of the Audit Report have
been corrected. Cut-off date of June 15th has been established and inven-
tory taken as of June 30th. Hopefully, the next audit will reflect these
changes. With reference to the Transportation's inventory procedures,
corrections have been made in these areas and trust that in the coming year
problems will be resolved.
(8) Provisions were not provided on the current Annual Financial Report to
include the liability of $70,000. Under the new CAMIS system's Annual
Financial Report we have provided for the reporting of this liability.
(19) As reported, as of 1971-72 there have been no students from the Montanari
Sea Camp. Any future tuition fees for students from this institution will be
at the $50 fee.
(20) Revenue on accrual basis should be recorded in year earned; not necessar-
ily in year cash received. Accounts Receivable could have been set up for
these items and then shown as a collection of receivable when it actually was
collected--this will be implemented.
(25) Flexibility funds can be spent in various accounts including textbooks.
Of the $68,014.39, $64,235.05 was charged to textbooks and $3,779.34 was
charged to other accounts equalling total allocations of $68,014.39.
(30) The District School Board adopted a new schedule for the Community School
Program on February 14, 1973. The new schedule went into effect March 1, 1973.
In our discussion with the auditors it was emphasized that the new salary
schedule would eliminate the discrepancy as indicated in the Audit Report.
EXHIBIT - C
(Continued) 38
MONROE COUNTY EXHIBIT C
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
July 1 , 1977 to June 7o, 1972
Audit Report
Paragraph
Number
(31) Verification of previous employment on all employees is being requested
upon employment.
(31) Dates of appointment and periods of employment are now being recorded
on each employee's payroll card.
(31) Job descriptions for administrative personnel are on file. We are in
the process of establishing job descriptions for each position in the non-
instructional area.
(33) During the past year the District's principals and supervisory person-
nel have been engaged in the development of a method of evaluation by object-
ives that is consistent with the District's move towards a system of manage-
ment by objectives. Principals and supervisory personnel have set forth for
the coming school year a list of performance objectives agreed upon between
them and the superintendent on which they will be evaluated for the 1973-74
school year. Copies of these objectives and the evaluation of their degree
of attainment will be their assessment of performance and will become part
of the records of principals and other supervisory personnel.
(45) As stated previously, the Board justified the acceptance of the Burroughs
Corporation bid as opposed to the National Cash Register Company's, not only
to the low annual maintenance cost, but the additional memory capacity was
necessary to implement the Board's new cost-accounting system.
(49) Continuing attempts are being made to secure from the insurance carrier
the information needed in order to determine a pro-rata cost of the insurance
policies shared by the Board and the Florida Keys Community College. The
College is also in the process of securing its own separate insurance so this
should not be a continuing problem.
(50) Investigations with our insurance carrier indicates there would be no
substantial savings effected by dropping certain vehicles during the summer
closing of schools; such action would also preclude the use of any such
vehicles should the need arise.
(55) Better interest rates are obtained when Time Deposits are purchased for
periods longer than three months. It is felt that the Board's responsibility
is to obtain the maximum return on its investment. Up to the present time
the banks would not compute the interest quarterly. This is done upon matur-
ity of the specified period. Only one bank at present is computing quarterly
regardless of the maturity date of any said Time Deposit.
EXHIBIT - C
(Continued)
EXHIBIT - C mu,LNcl _o.,cr.
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
Judy 1 , 297o to June qo, ig72
Audit Report
Paragraph
Number
(60) Close attention will be rendered to assure that mileages shown on the
Mid-Year Report will correlate more closely with that of the bus drivers'
reports.
(Si) Bus drivers will be instructed to complete Form TR-1 in accordance
with the instructions on page 4 of the 35th edition of the Drivers Handbook..
The forms in question were not available for this report. However, informa-
tion comparable to that of TR-1 is available in the transportation office on
Form MC-T.4 (Driver' s Daily Check List).
(62) The only source available to determine the number of students transported
from school centers to Vocational/Technical areas was the bus route sheet.
From this trip sheet it was determined that 167 students were transported to
and from Voc/Tech on two buses. A total of 12 on Bus #59 by Mrs. Marrero; 155
on Bus #85 by Mrs. Diezel. The number of transported students to and from
Voc/Tech will be reported on Form TR-11 in the future.
(64) The gasoline credit cards mentioned on page 6 will be withdrawn form all
stations in the Middle and Upper Keys. The custody of the cards in these areas
will be placed with the gas pump attendent. The only exception for gas pur-
chases on credit cards will be in the event of non-delivery to our pump by the
supplier. It must be remembered that 20-day inspections, tire changes, and
most minor repairs are charged to said cards and the gas pump attendent will be
responsible for verifying these charges. We also have one bus in Pine Crest,
Florida, that must do business exclusively by credit card. This unit is
approximately 100 miles from the School Board's nearest pump.
176-78) A new contract is being entered into with the Guidance Clinic which we
hope will comply with some of the recommendations noted in the Audit Report.
(80) In the future advance payments to the U. S. Navy for utilities will be
recorded as deposits receivable and adjustments for expenditures.
(61-82) More detailed procedures and practices have been outlined and are being
implemented in the Vocational/Technical Education Department. Procedures for
the recording and resale of books to students has been changed. Also, a new
inventory form is being designed.
(83) Receipts issued are pre-numbered.
(84) Where students, teachers and others are permitted to bring personal items
to be repaired in class as a part of the students' learning process, a charge
was made for the cost of the parts and, if other than the student, labor.
Funds collected for this purpose are deposited in a special internal account
and are used for the replacement of equipment and other improvements of the
program earning the funds.
3 -
EXHIBIT
in -ued)
(Continued) 40
(
MONROE COUNTY EXHIBIT - C
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
July 1 , 1970 to June 3o, 1072
Audit Report
Paragraph
Number
(65) Parts of engines were received--some good; some beyond use. Property
Control Clerk has numbered these parts. Other unusable parts are stored.
(88) Under the new cost-accounting system adopted by Monroe County District
School Board a new procedure is being followed to record the revenue from
sale of books--this will provide the true net cost of other programs.
(89) While in the process of adopting a new cost-accounting system as a
Pilot Program, changes in personnel and duties assigned were required. In
this particular area the job description and duties assigned to each posi-
tion is being carefully considered.
(90) Under the new system and with the installation of the L-5000 Electronic
Computer all warrants and vouchers are pre-numbered.
(91) Payroll warrants continue to be signed by the use of facsimile signature
plates. This is done in another department other than in the Payroll Depart-
ment and the access and responsibility to the signature plates and keys to
the machine is definitely assigned to one specific person and to an alternate
in her absence.
(94) New procedures are being implemented whereby adequate cross-references
appear on both invoices paid to vendors for airline tickets as well as on the
respective travel voucher.
{los) To-date the reserve balance required in the Certificate of Indebtedness
Fund has been met.
(119) Not reducing the control account for land by $10,000 as mentioned in the
Audit Report was an oversight. This was promptly corrected.
(121) The name of the property custodian of a location at a given time can now
(122) be quickly determined by referring to a "Property Custodian" record maintained
in the property control office. The fiscal year that an item was inventoried
by property control is indicated on the property record card for the item.
The full inventory date and condition of an item can be quickly found by re-
ferring to the property control inventories which are filed by fiscal year
and in alphabetical order by location.
(122) Property numbers have now been assigned to rifles and band instruments
on official property control records.
EXHIBIT - C
4 - (Continued)
41
EXHIBIT - C MONROE COUNTY
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
July 1 , 197o to June 3o, 1972
Audit Report
Paragraph
Number
(122) A form has now been devised which provides for the actual date that an
item approved for removal is disposed of (e.g. , destroyed, picked up by the
Maintenance Department for cannibalization, picked up by successful surplus
bidder). The property record card appropriately shows the date of sale,
the name of the successful bidder and the bid amount. Now the actual date
of disposition can also be noted on the card.
(123) The "$100.00 minimum" legislation effective May 31, 1973 is reducing
the overall quantity of new items which property control has responsibili-
ties with and, thus, the gap between the time an item is acquired, then
tagged and subsequently submitted on official property control reports
should be shortened.
(124) As of June 30, the three cargo trucks are officially valued at $500.00
each. A procedure has been devised which should eliminate the type problem
which occurred with the original property control valuation of the trucks.
(125) It occasionallyis impossible for p property control to break down trans-
portation charges on a per-item basis as a vendor may list one transportation
charge applicable to several unalike items. However, in such an instance the
charge is so noted on property- control's voucher record.
(125) It is anticipated that a reconciliation will be made for the 1972-73
fiscal year between property control records and finance office records.
(rzs) Again, as a result of the "$100.00 minimum" legislation, the taking of
inventories annually, including vehicles, of all locations by property control
and the implementation of a consistent follow-up procedure are anticipated.
(127) A procedure has been set up in which property custodians notify the
employees at their respective locations in writing of the Board's policy on
the lending of equipment to an individual.
(127) The trampoline assigned property number 20702 has been determined as an
untagged trampoline temporarily located at the Horace O'Bryant Junior High
School Cafetorium. The item's frame had been recently pained thus oblitera-
ting the 20702 number. The lawn mower and edger assigned property numbers
27449 and 50971, respectively, have been placed in the category wherein items'
tags are not recognizable and reconciliation is necessary.
(12B) Effective immediately property numbers are being indicated on the expen-
diture vouchers upon items being tagged.
(129) For some surplus items, it is felt the District School Board comes out
ahead even if an item is sold at a very low price since the successful bidder
must remove an item from school grounds at his own expense; this is in contrast
to a minimum acceptable bid being established with no one bidding and the
Board eventually having to remove an item at its expense.
EXHIBIT - C
(Continued) - 5 'z
MONROE COUNTY EXHIBIT - C
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
July 1 , a97o to June 3o, 1972
Audit Report
Paragraph
Number
(124) It should be noted that property control records are currently being
computerized. Ultimately, the desired results in the department should
thus be achieved more expeditiously and efficiently.
113s) As mentioned on page 1 provision has been made for reporting this
liability.
July 19, 1973 -1y"'
(Date) A. J. Henriquez
Superintendent of Schools
(Title)
fn_ EXHIBIT - C
71a)