Report No. 08612, District School Board i
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STATE OF FLORIDA
OFFICE OP THE AUDITOR GENERAL.
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*** MONROE COUNTY ***
DISTRICT SCHOOL BOARD
As of June 30, 1974
8612
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Report on Audit
of the Accounts of
MONROE COUNTY
DISTRICT SCHOOL BOARD
As of June 30, 1974
Dated: December 8, 1975
HE sr.te
l .. 6 STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Tallahassee, Florida
ERNEST ELLISON,C.P A. December 8, 1975
AuolToa GENERAL
The Legislative Auditing Committee
of the Legislature
and the
Governor of Florida
• Sirs:
Pursuant to the provisions of Section 11.45, Florida Statutes, I
have directed that an audit be made of the accounts and records of the
DISTRICT SCHOOL BOARD
MONROE COUNTY
Par. For the fiscal year ended June 30, 1974,
No.
and present this report thereon.
(1) Pursuant to the provisions of Section 11.45(4) , Florida Statutes, an
audit by this office of the accounts and records for the fiscal year ended
June 30, 1973, has been deferred. However, for comparative purposes in the
tabulations included in the comments of this report, audited figures for
1973-74 are presented with figures taken from the Board's reports and records
for the fiscal year 1972-73.
PERSONNEL
(2) The personnel of the Board was as follows:
Member District
No.
Robert A. Dion 1
Enoch H. Walker, Vice-Chairman 2
Sidney E. Mathews 3
Wilhelmina Harvey 4
Ruth Alice Campbell, Chairman 5
Armando J. Henriquez, Superintendent
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No.
SCOPE AND OPINION
(3) I have examined the financial statements of the various funds and
account groups of the Monroe County District School Board for the fiscal year
ended June 30, 1974. My examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests of the
accounting records and such other auditing procedures as I considered necessary
in the circumstances.
(4) Liabilities and expenditures for the Capital Improvement Funds
totaling approximately $133,000 were not reflected in the Board's accounts or
on its financial statements.
(5) In my opinion, except for the comment above, the accompanying finan-
cial statements present fairly the financial position of the various funds and
account groups of the Monroe County District School Board at June 30, 1974, and
the results of operations of such funds for the year then ended, in conformity
with generally accepted accounting principles applied on a basis consistent
with that of the preceding year.
FINANCIAL POSITION
(6) The financial position of the various funds at June 30, 1974, is
shown on exhibit A. Changes in reserves and fund balances are shown on
schedule 1-A.
(7) Current resources at the fiscal year-end were sufficient to meet
current obligations at that date.
(8) The unappropriated fund balances of the Operating Funds at the end
of the last two fiscal years were as follows:
June 30, 1973 $659,931.40
June 30, 1974 509,651.82
(9) The Petty Cash Fund was replenished prior to the closing of records
for the fiscal year, as required by Section 6A-1.57(4) , Rules of the State
Board of Education.
(10) The Board no longer maintained a separate bank account for FICA
taxes. These funds were maintained in the Board's regular payroll account and
were correctly reflected on the Board's financial report.
(11) The amount reported for material stores inventories included the
value of inventory located at the stores and distribution warehouse, $97,476.22;
maintenance department, 874.296. 53; and transportation department; materials
and supplies, $13,865.21, and gasoline and oil, $4,814.03. The valuation of
transportation inventory could not be verified because the prices shown on
inventory records of these items could not be traced to appropriate invoices or
purchase orders in order to determine their validity. The valuation of the
stores and distribution and the maintenance inventories was determined to be
substantially accurate. Several deficiences were noted in the procedures used
to obtain the value of inventories at June 30, 1974, as follows:
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1. There were no written instructions for taking inventory at the
maintenance and at the transportation departments.
2. An adequate cut-off date was not established for the inventory
count at the stores and distribution warehouse and at the trans-
portation department.
3. Procedures were not in effect to assure that all items were
counted or to prevent counting items twice.
4. The inventory count was not taken independently of perpetual
records and in some cases was taken by the custodian of the
inventory at the maintenance and at the transportation
departments.
5. Procedures for verification of counts by inventory teams were not
in use.
Similar deficiencies were also discussed in audit report No. 8006, paragraph 7.
(12) Vouchers paid in the beginning of the 1974-75 fiscal year included
payments for invoices which should have been recorded as expenses and accounts
payable at June 30, 1974. These invoices totaled approximately $133,000 for
the Capital Improvement Funds and were in excess of $51,000 for the Operating
Funds. The failure to record similar expenses and liabilities was reported in
audit report No. 7581, pages 3 and 6, and audit report No. 8006, page 3.
(13) The Board's financial report included an amount of $40,000 at June 30,
1974, for a liability resulting from an award by Legislative Act to an injured
student. Payment was made during the audit period in the amount of $5,000 as
required by Chapter 70-814, Special Acts of 1970.
(14) During the audit period the Board shared in the issue of State Board
of Education Capital Outlay Bonds, Series 1974-A. The Board's share of this
issue amounted to $2,990,000. Details of this issue are shown under the head-
ing BONDED AND DEFERRED DEBT AND INTEREST.
FINANCIAL OPERATIONS
(15) A statement of revenue and expenditures for the fiscal year ended
June 30, 1974, is shown on exhibit B.
Revenue
(16) Revenues for the last two fiscal years, as reported by the Board,
are summarized for comparative purposes in the following tabulation:
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Source 1972-73 1973-74
Amount Percent Amount Percent
Federal:
Received Direct $ 955,448.71 9.31 $ 1,069,880.71 6.67
Received Through State 435,499. 71 4.25 848,611.38 5.29
Total Federal $ 1,390,948.42 13.56 $ 1,918,492.09 11.96
State 5,082,642.74 49.55 6,233,418.54 38.86
Local 3,782,346.97 36.88 4,857,837.35 30.28
Nonrevenue 616.24 .01 3,031,609.11 18.90
Total $10,256,554.37 100.00 $16,041,357.09 100.00
(17) During 1973-74, $706,419 was provided in the form of Federal Impact
Funds. These funds are provided for assistance in the operation of local
school districts because of the loss of tax revenue resulting from Federal
installations being located within the school district. The contribution from
the Key Deer National Wildlife Refuge amounted to $19,939.71. Additionally,
$93,522 was received from the Neighborhood Youth Corps program. The Comprehen-
sive Manpower Planning Council provided $250,000 for two programs, Summer Teens
and Self Help. The Summer Teens program funds totaled $126,000 and provided
funds for 250 youths from underprivileged families seeking work experience.
The Self Help program funds totaled $124,000 and provided jobs for youths from
economically disadvantaged families.
(18) The revenue received from the Federal Government through the State
was derived from contractual agreements between the two governments and repre-
sented approved allocations for certain programs. Comments regarding these
funds are included under the heading CONTRACTED PROGRAM FUNDS.
(19) State funds for current operations, transportation, capital outlay,
and debt service were allocated in accordance with Sections 236.081 through
236.087, Florida Statutes, 1973, and the Constitution of Florida. The alloca-
tion from the Florida education finance program (FEFP) was based primarily on
the full-time equivalent student membership.
(20) Section 236.084, Florida Statutes, 1973, provides that funds for
comprehensive school construction and debt service are to be allocated by the
Commissioner of Education to each school district in proportion to its percen-
tage of the State total of unfunded school plant and debt service needs.
(21) Capital outlay and debt service funds were allocated to the Board on
the basis of instructional units as provided in Section 9, Article XII,
Constitution of Florida, and Section 236.602, Florida Statutes.
(22) Revenue reported from local sources was derived primarily from taxa-
tion and also from interest earned on investment of temporarily idle funds.
(23) Nonrevenue receipts for 1973-74 consisted of $3,014,931.85 in
proceeds and interest from the sale of State Board of Education Capital Outlay
Bonds, Series 1974-A, and $16,677.26 in insurance loss recoveries.
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Expenditures
(24) Expenditures as reported by the Board for 1973-74 and as shown in
the accounting records for 1972-73 (reported as functional classification of
the uniform system) are summarized for comparative purposes in the following
tabulation:
1972-73 1973-74
Purpose Amount Percent Amount Percent
Instruction:
Regular Education 5 4.890,618.68 42.26 $ 4.813.485.31 38.91
Special Education 32,003.43 .28 359.269.95 2.90
Adult and Continuing Education 46,726.82 .40 61,367.39 .50
Vocational Education 148,940.67 1.29 625.266.51 5.06
Total Instruction 8stienses $ 5,118.289.60 44.23 $ 5,859,389.16 47.37
Instruction Support Services:
Attendance and Social Work $ 32,208.50 .28 $ 37,685.56 .30
Guidance Services 216,675.97 1.87 272.562.53 2.20
Health Services 35.946.38 .31 28,348.05 .23
Speech Pathology and audiology Services 5,022.50 .04 33,244.81 .27
Pupil Personnel Office 15,516.29 .13 24,496.10 .20
Instructional Media Services 247,293.90 2,14 210.317.34 1.70
Instructional Administration Services 300,427,72 2.60 243,472,27 1.97
Research, Planning, Development, and B8.522.16 .72
Evaluation of Instructional Program Services 45.043.82 .39
Other Instruction Support 113.60
Total Instruction Support Services Expenses E. 998.248.68 7.76 $ 938.648.76 7.59
General Support Services:
Board of Education S 1,458,493.36 12.60 $ 900,315.74 7.28
General Administration (Superintendent's
Office) 236,034.11 2.04 265.989.74 2.15
School Administration (Office of the 578.031.10 5.00 755,395.6$ 6.11
Principal) 1,49 353,341.75 2.86
Facilities Acquisition and Construction 19,208,14 1 04 129 496,65 1.05
Fiscal Services 115,512.14 54
Food Services
45.512.54 .39 54.15298 .44
Central Services A.488.36 .62 98,379.57
.79
Information Services 35,682,69 .31 11.972,96 .09
Operation and Maintenance of Plant
1,232,018.19 10,65 1.253.276.75 10.13
Pupil Transportation Services 327,502.42 2.03 485.000.00 3.92
33,116.00 .29 35,456.33 .29
Staf 27,183.20 .23 42.575.52 .34
Data Processing Services
Total General Su'ybort Services Fxgenses S 4,337,248.28 37.49 $ 4,385,353 41 35.45
Community Services, Remittances, and Transfers:
Community Services 5 166,905.33 1.44 $ 250,749.11 2.03
254,826.25 2.20 285.644.65 2.31
Transfer os 796.148,91 6.88 649,369.70 5,25
Transfer of Funds
Total Community Services, Remittances,
and Transfers
$ 1,217,880.49 10.52 $ 1.185,763.46 9.59
511,571,667.05 100.00 $12,369,154.79 100.00
Total
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(25) Expenditures reported by the Board appeared to be for legal purposes,
properly supported, and correctly classified. Discounts and tax exemptions
were generally taken where applicable.
(26) Based on audit tests, it appeared that methods used in the preaudit
of vouchers were adequate.
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 1972-73 1973-74
Positions Positions
No. Percent No. Percent
Administrative and Professional 5 .47 5 .47
Instructional, K-12 580 53.95 577 54.59
Instructional, Adult Education 46 4.28 50 4. 73
Other School Personnel 444 41.30 425 40.21
Total 1,075 100.00 � 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 number of pupils per teacher is as follows:
Grades ADM Teachers Average Pupils
Per Teacher
1972-73
1- 6 5,367 242 22.18
7- 9 2,789 121 23.05
10-12 1,746 107 16.32
1973-74
1- 6 4,973 226 22.00
7- 9 2,593 118 21.97
10-12 1,911 114 16. 76
(29) The figures shown in the above tabulation for average number of
pupils per teacher were computed from data summarized by the Department of
Education from the principals' annual reports of attendance. The above figures
are averages and are not intended to indicate the number of pupils being
taught by each teacher at each class session. The number of teachers shown
reportedly does not include teachers who were not assigned full-time to a spe-
cific school, supervisors, principals, librarians, guidance counselors,
psychologists, and other nonteaching personnel.
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(30) The Board adopted salary schedules as required by Section 236.02(4) ,
Florida Statutes, and Section 6A-1.52, Rules of the State Board of Education.
The salary schedules provided the rates of pay for substitute teachers not
under contract and distinguished the qualifications for the various pay rates
for the community school program instructional positions.
(31) In some instances, personnel records for noninstructional personnel
did not contain adequate documentation of one or both of the following:
1. Factors used in the calculation of compensation, as required by
Sections 6A-1.52 and 6A-1.69, Rules of the State Board of
Education.
2. Written qualifications and job descriptions.
This was also noted in audit report No. 8006, paragraph 31.
(32) Personnel files generally included documentation of dates of employ-
ment and verification of previous employment.
(33) Personnel file folders for individual employees contained documents
which were not in any uniform sequence. As mentioned in audit report No. 8006,
paragraph 32, correction of this condition would provide for more efficient
location of personnel records and would provide assurance that the requirements
contained in the Florida Statutes and the Rules of the State Board of Education
are being met.
(34) There was no documentation indicating that administrative and super-
visory personnel were evaluated during 1973-74, in compliance with Section
231.29(2) , Florida Statutes. This condition also existed during the prior
audit period and was noted in audit report No. 8006, paragraph 33.
(35) Some personnel records were not kept in lockable file cabinets
bearing a certified fire protection label, although required by Section
6A-1.69(3) , Rules of the State Board of Education.
(36) Overtime wages were properly supported.
(37) The payroll division maintained records of leave accrued and taken
by employees. Leave records appeared to be complete and accurate. Leave was
granted in compliance with Board policy and State Board of Education rules.
(38) Deductions for social security and retirement contributions were
made from employees' salaries and were promptly remitted with the Board's
matching payments. Nonmandatory payroll deductions were adequately supported
by signed authorizations.
Travel Expense
(39) Monthly travel allowances paid to Board members, the Superintendent,
and several employees were supported by signed statements showing an average
typical month's travel; however, none of the statements contained:
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1. The amount that would have been allowed under the approved rate
per mile if payment had been made pursuant to Section
112.061(7) (d) , Florida Statutes (this is required by Section
112.061(7)(f), Florida Statutes) .
2. A statement that the expenses were actually incurred by the
traveler as necessary traveling expenses in the performance of
his official duties and a written declaration that the travel
claim is true and correct as to every material matter (these
are required by Section 112.061(11), Florida Statutes).
Travel allowance payments were made to several employees prior to the dates of
their signed statements of an average typical month's travel. Section
112.061(7) (f) , Florida Statutes, requires that the signed statement of the
traveler be filed before the allowance is granted or changed, and at least
annually thereafter.
(40) Information was not furnished or located to indicate that the Board
had attempted to obtain support or reimbursements for the unauthorized and
unsupported travel expenditures mentioned in audit reports No. 7581, page 8,
and No. 8006, paragraph 40. The Superintendent's response to the audit find-
ings for report No. 8006 did not include an explanation of this item.
Purchasing
(41) A purchasing handbook contained Board and administrative purchasing
policies. A purchasing department had the responsibility for the purchases
of materials, supplies, and equipment. Purchasing procedures were generally
adequate. Bids were advertised and requested when required by law.
Insurance and Bonds
(42) The Board had the following insurance coverage during the audit
period:
1. Workmen's Compensation
2. Automobile Bodily Injury and Property Damage Liability
3. Comprehensive General Liability, Personal Injury Liability, and
Errors and Omissions Liability
4. Umbrella Excess Third Party Liability
5. Blanket Coverage for Physical Damage to and Loss of the use of
Real and Personal Property
6. Honesty Blanket Position Bond
7. Scheduled Property Floater for Band Instruments
8. Group Health and Life Insurance
Insurance advice was obtained from a local insurance consultant and premiums
in 1973-74 were approximately $200,000. The Board's insurance register
appeared to be complete and accurate.
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(43) Insurance policies in effect during 1973-74 were not obtained through
bids; however, bids were taken subsequent to the audit period. Bids are not
required by law.
(44) Insurance coverage for the Florida Keys Community College was elimi-
nated from the Board's insurance policies on July 1, 1973. The Board was not
reimbursed by the Community College for its pro rata share of premiums for
policies providing joint coverage prior to July 1, 1973. The last payment
from the College was for coverage for the period ending March 15, 1971. No
statements requesting payment had been prepared by the Board subsequent to
that date.
Investments
(45) The Board placed temporarily idle funds in interest bearing time
deposits. A tabulation showing interest income for 1972-73 and 1973-74 is as
follows:
•
Major Fund Group
1972-73 1973-74
Interest Income from Investments
Made Locally:
Operating Funds $35,229.50 $20,494.49
Debt Service Funds 10,589.73 13,707.80
Capital Improvement Funds 2,884.00 3,342.40
Interest Income from Investments of
Board Funds Held by the State:
Debt Service Funds 7,664.10 16,026.99
Capital Improvement Funds 1,203.28 5,847.81
Total $57,570.61 $59,419.49
(46) Section 136.04, Florida Statutes, provides that on savings and time
deposit accounts, all interest shall be computed and credited quarterly. The
Board had time deposit accounts in five different banks. Four of the banks
did not compute and credit interest quarterly to the Board's account.
Budgets
(47) Budgets in general were properly prepared, adopted, and adhered to in
compliance with applicable laws and regulations. A summary of budgets is shown
in the following tabulation:
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Budgeted Actual Budget
(As Reported) Difference
Revenue
Operating Funds $10,825,254.45 $10,638,779.20
Debt Service Funds $ -186,475.25
1,060,107.56 1,072,743.29 12,635.73
Capital Improvement Funds 4,450,645.26 4,030,701.08 -419,944.18
Contracted Program Funds 948,503.22 948,503.22
Total Revenue. $17,284,510.49 $16,690,726.79 $ -593, 783. 70
Beginning Balances 1,772,900.05 1,772,900.05
Corrections of Prior Years -17,278.80 -17,278.80
Total $19,057,410.54 $18,446,348.04 $ -611,062.50
Expenditures
Operating Funds $11,306,045.42 $10,768,903.66 $ 537,141.76
Debt Service Funds 783,127.75 672,328.68 110,799.07
Capital Improvement Funds 3,923,165.95 575,906.67 3,347,259.28
Contracted Program Funds 974,738.13 352,015.78 622,722.35
Total Expenditures $16,987,077.25 $12,369,154.79 $ 4,617,922.46
Ending Balances 2,070,333.29 6,077,193.25 -4,006,859.96
Total $19,057,410.54 $18,446,348.04 $ 611,062.50
Taxes
(48) Millages and taxes levied for school purposes on the 1972 and 1973
tax rolls are shown below:
1972 1973
Mills Amount Mills Amount
Operating Funds:
Nonvoted School Tax 8.40 $3,614,856.97 9.75 $4,825,864.00
Debt Service Funds:
District Interest and Sinking .40 174,952.56 .42 211,018.00
Total 8.80 $3,789,809.53 10.17 $5,036,882.00
Millages were within the amounts authorized by law.
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Transportation
(49) The transportation allocation from the Florida education finance
program was based on the number of students transported during two membership
survey periods during the year.
(50) The transported membership reported for the survey periods was as
follows:
10-1-73 2-25-74
to 10-5-73 to 3-1-74
Transported Membership 4,628 5,037
(51) Records on maintenance cost for automotive equipment had improved
through the implementation, of a job order accounting system.
(52) For the use of buses for school activities other than transporting
students to and from school, the Board charged at the rate of each driver's
salary plus the cost of gasoline.
(53) Custody of gasoline credit cards had been given to the Board's
employees. It appeared that adequate control had been established over the
use of these cards.
(54) The cost per mile to operate school buses as reported by the Board
was as follows:
1972-73 1973-74
School Bus Operating Cost Per Mile $. 4299 $.52582
The cost includes the cost of salaries, insurance, maintenance, and other
operating expenses. The cost does not include a pro rata cost of the purchase
price of the buses.
(55) Records supporting the total cost of transporting students, as
stated in the annual financial report, were adequate and substantially accurate.
(56) The total cost of transporting students as shown on the Board's
annual financial reports is as follows:
1972-73 1973-74
Cost of Transporting Pupils Between Home and
School $254,839.13 $364,828.79
Cost of Transporting Pupils to Other School 48,604.50 37,866.56
Activities
Total Expenditures $303,443.63 $402,695.35
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Compensation of Superintendent and Board Members
(57) The Superintendent's compensation was governed by the provisions of
Chapter 145, Florida Statutes. Section 145.08(5) Florida Statutes, 1971, pro-
vides that when the salary set forth in Section 145.08, Florida Statutes, 1971,
is not sufficient for the district to meet the requirements for accreditation as
set forth by the Southern Association of Colleges and Schools, the district
school board shall set the salary of the superintendent in an amount not to
exceed 10% more than the current salary of the highest paid employee of the
district school board.
(58) The Superintendent was paid in 1970-71 and 1971-72 an amount which
was 10% higher than the annual salary of the highest paid employee. The
amounts paid for these two fiscal years were reported in audit report No. 8006,
paragraph 72.
(59) The publication of the Southern Association of Colleges and Schools,
Standards for Secondary Schools, principle F, standard 2, states in part that
salaries paid to superintendents of systems including member schools shall in
every case be at a higher monthly and annual rate than that paid to the prin-
cipal or other members of the administrative staff.
(60) The highest monthly amount and the highest annual amount paid an
employee during the fiscal years 1972-73 and 1973-74 were as follows:
1972-73 1973-74
Monthly (1) $ 2,000 $ 2,100
Annual (2) 21,660 22,440
Notes: (1) Employed and paid for nine
months.
(2) Employed and paid for twelve
months.
(61) Based on local interpretations of the Standards for Secondary Schools
and of the applicable provisions of law the salary of the Superintendent for
the fiscal year 1972-73 was calculated at a monthly rate of $2,110 (5.5% higher
than the $2,000 highest monthly amount paid an employee) for 12 months result-
ing in total compensation paid the Superintendent in 1972-73 of $25,320.
(62) As a result of amendments to Chapter 145, Florida Statutes, by
Chapter 73-173, Acts of 1973, effective October 1, 1973, the Superintendent's
annual salary from October 1, 1973, was $22,305. However, Chapter 74-353,
Acts of 1974 (Section 145.08(2) , Florida Statutes, 1974 Supplement), provided
that on October 1, 1973, no elected superintendent shall be caused to suffer a
decrease in gross salary as a result of the implementation of Subsection 1 of
Section 145.08, Florida Statutes, 1974 Supplement. Based on the provisions of
Chapter 74-353, Acts of 1974, the Superintendent was paid $25,320 for the
fiscal year 1973-74, the same amount paid during the previous fiscal year
(1972-73).
(63) The Superintendent's compensation calculated on the basis of the
highest annual salary paid an employee would be as follows:
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1972-73 1973-74
Highest Current Annual Salary, Paid an
Employee $21,660.00 $22,440.00
Increase Amount:
5.5% 1,191.30
10.0% 2,244.00
Total Salary for Superintendent (Section
145. 08(5), Florida Statutes, 1971) $22,851.30 $24,684.00
Less, Total Paid Superintendent 25,320.00 25,320.00(1)
Excess $-2,468. 70 $ -636.00
Note: (1) Includes $600 paid September 18, 1974.
This method of calculation would be consistent with the calculation made for
• the payment of the Superintendent's compensation for the fiscal years 1970-71
and 1971-72 under the provisions of Section 145.08(5) , Florida Statutes, 1971.
(64) Because of the possible differences in the interpretations of the
applicable laws governing the Superintendent's compensation, it is recommended
that the Board obtain a legal determination as to the correct amount of com-
pensation payable to the Superintendent under applicable laws for the fiscal
years 1972-73 and 1973-74.
(65) Board members' compensation of $3,913.25 each was governed by Section
145.041, Florida Statutes. Each member was underpaid $38.23 at June 30, 1974.
(66) Through September 1973, the Chairman of the Board was paid an addi-
tional $50 per month as required in Section 145.131(1) , Florida Statutes, and
Chapter 57-611, Acts of 1957. Payment of this additional amount was not made
after September 1973, in accordance with a ruling by the General Counsel of
the State Board of Education, dated August 22, 1973.
Guidance Clinics
(67) The Board contracted with three guidance clinics during 1973-74 for
the purpose of rendering counsel to the school children of Monroe County in
matters of mental health and guidance. The contracts called for payments in
monthly installments of the following total annual amounts:
Clinic Amount
Guidance Clinic of the Lower Keys $10,200
Guidance Clinic of the Middle Keys 3,400
Guidance Clinic of the Upper Keys 3,400
(68) Under the provisions of Section 394.80, Florida Statutes, the Monroe
County Board of County Commissioners had appropriated a total of $24,000 to be
paid to these same organizations for similar services.
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(69) Itemized invoices were not presented to support payments to the
clinics. During the audit period, the clinics did not submit quarterly reports
as specified in the contracts with the Board; however, in August 1974 a report
was submitted for the quarter ended June 30, 1974, and the report listed the
specific services performed for that quarter.
(70) As was previously stated in audit report No. 8006, paragraph 78, I
do not know of any legal authority for the Board to provide medical services
to students other than the services stipulated in Section 230.23(6) (d) and
Sections 232.29 through 232.32, Florida Statutes (these sections were repealed
as of January 1, 1975, by Chapter 74-356, Acts of 1974) , which are primarily
the responsibility of the State Department of Health and Rehabilitative Services
through the County Health Unit.
Monroe County Health Unit
(71) The Board continued to contract with the Division of Health to
obtain medical services through the Monroe County Health Unit for school
children and employees. A report was submitted describing the services ren-
dered in 1973-74 by the Health Unit. The Attorney General in his opinion
No. 052-305, dated November 5, 1952, stated that there would be no objection
to a reasonable agreement or contract between a county school board and a
county health unit whereby the former undertook to pay part or all of the
costs incurred by the county health unit to furnish the educational health
services which are declared to be a school purpose and responsibility by law,
provided the county health unit cannot undertake to provide a medical inspec-
tion of school children and other required services as a part of its county
health program. He stated that the agreement should be in writing and state the
specific services to be rendered by the health unit in return for the funds
paid out by the county school board, and that the consideration paid must repre-
sent the fair contractual value of the services rendered.
(72) The Board paid $17,000 to the Health Unit for 1973-74.
Purchase and Resale of Supplies - Vocational-Technical
and Adult Education
(73) Procedures used to maintain records for books purchased for resale
to students had been improved. Specific purchases of books could be identified
to the perpetual records maintained by the Director of Vocational-Technical
and Adult Education.
(74) Prenumbered receipts were issued for payments from students for
purchase of books and for registration fees. Procedures employed in conjunc-
tion with these receipts appeared adequate to maintain proper control over
collections.
(75) Two outboard motors mentioned in audit reports No. 7581, page 14, and
No. 8006, paragraph 85, still had not been recorded on the property records.
The Superintendent stated in his response that with property classified as minimum
$100 equipment (rather than minimum $25) , (Superintendent's response refers to
change in Section 274.02, Florida Statutes, 1973) outboard motors located at
Vocational-Technical Building 18 have not been of high enough value for recording
on property control account. In audit report No. 7581, page 14, it was stated
that two outboard motors had been placed in operational condition and were used
as demonstrators in classes.
14
Par.
No.
INTERNAL CONTROL AND RECORDS
(76) Although some deficiencies were noted, internal control generally
appeared to be adequate. Sufficient separation of duties had been established
in the area of cash collection; however, a list of receipts was still not
being prepared for collections received by mail. All warrants were prenumbered
by the printer. Access to the signature plates and the keys to the check sign-
ing machine had been sufficiently limited to provide adequate internal control.
(77) Although some prenumbered receipts were in use, some receipt forms
used were not prenumbered. Internal control would be strengthened through
the use of receipts that are prenumbered by the printer.
(78) Some deficiencies noted in control over material stores inventory
are discussed under the heading FINANCIC7 POSITION.
(79) As reported in audit report No. 7581, page 16, and audit report
No. 8006, paragraph 93, an accounting procedures manual describing the detailed
functions and responsibilities of each fiscal position still had not been pre-
pared by the finance department.
(80) As also noted in report No. 8006, paragraph 94, vendors invoices
were not stamped "paid" or otherwise marked to prevent duplicate payment, and
payments to vendors for airline tickets were not cross-referenced to travel
vouchers.
(81) Unused checks were being stored until needed in an area that was
not locked during the work day. To prevent a possible misuse, those forms
could be better safeguarded.
(82) The Board minutes appeared to reflect the official actions of the
Board, were currently typed, and were indexed.
OPERATING FUNDS
(83) 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.
(84) Operating funds provided from State sources amounted to approximately
47 percent of total revenues during the audit period. Local sources provided
approximately 44 percent, and funds received directly from the Federal
Government amounted to approximately 7 percent. Federal money received through
the State represented 2 percent of operating funds.
15
Par.
No.
DEBT SERVICE FUNDS
(85) 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, revenue certificates, and loans authorized by Section 237.161, Florida
Statutes.
(86) Reserve requirements of each fund were met and the required payments
were promptly made.
CAPITAL IMPROVEMENT FUNDS
(87) 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.
(88) With the exception of the item listed below, the Board complied
with the laws and regulations applicable to Capital Improvement Funds and
the expenditures were properly supported.
(89) Board records did not contain evidence of Department of Education
approval of final plans for the construction of a portable building at Marathon
High School. There was also no Department of Education certificate of comple-
tion on file for this project.
(90) Unrecorded liabilities of the Capital Improvement Funds are discussed
under the heading FINANCIAL POSITION.
(91) The following tabulation shows the accounting for funds for capital
outlay purposes derived from bond issues for which there were proceeds on hand
during the audit period:
State Board of State Board of
Education Bonds Education Bonds
Dated 6-1-62 Dated 1-1-74
Receipts
Proceeds $750,000.00 $2,729,456.69
Interest, Prior Periods 27,376.45
Interest, Audit Period 67.76 10,255.16
Total Receipts $777,444.21 $2,739,711.85
Expenditures
Prior Periods 775,876.24
• Balances, June 30, 1974 $ 1,567.97 $2,739,711.85
16
Par.
No.
(92) A band and science facility at Marathon High School was the only
major capital improvement project completed during the audit period. Estimated
and actual completion costs are shown in the following tabulation:
Estimated Cost $220,000.00
Actual Cost:
Capital Improvement Fund $293,555.20
Gross Square Footage 10,000
Cost Per Square Foot $29.35
CONTRACTED PROGRAM FUNDS
(93) 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 pur-
poses other than the general current expenses of the school district, and which
were not directed to be recorded in the Capital Improvement Funds.
(94) A total of 51 individual projects were active in this fund group
during the fiscal year 1973-74. Of these, the Neighborhood Youth Corps,
Summer Teens, and Self Help projects were funded directly by the Federal
Government. These projects are discussed under the heading FINANCIAL OPERATIONS.
One project, the Community School Program, was funded with local sources of
revenue. The remaining projects were funded with Federal funds received
through the State.
(95) Expenditures from contracted program funds in general were properly
approved and were authorized by the grant terms.
GENERAL FIXED ASSETS
(96) The purpose of this group of accounts is to account for the .cumula-
tive cost of capital outlay items owned by the Board.
(97) In general the amounts recorded for land and buildings appeared to
be accurate.
(98) The value of three one-half ton cargo trucks, purchased from the
Division of Federal Surplus Property during the prior audit period, was
correctly adjusted and shown at actual value.
(99) Although improvement was noted over the conditions reported in audit
report No. 8006, page 21, there were still some property items which were not
being inventoried annually. Follow-up procedures for unlocated property had
been established; however, these procedures had not yet been reduced to writing.
Procedures had been instituted whereby motor vehicles are inventoried on an
annual basis.
(100) Real property valued at $10,000 which was sold in 1970-71 as mentioned
in audit report No. 8006, paragraph 119, was removed from the Board's accounts.
17
Par.
No.
(101) Pursuant to Section 274.02, Florida Statutes, as amended in 1973,
property records are no longer required to be kept for items costing less than
$100. During 1973-74 items with an individual value less than $100 and a total
value of $502,036.16 were removed from the Board's property records.
(102) A trampoline (property No. 20702) mentioned in audit report No. 8006,
page 22, was located at Key West High School.
(103) An air-conditioner (property No. 50830) with a cost of $200 could not
be located during the audit and was apparently disposed of without proper
authorization.
BONDED AND DEFERRED DEBT AND INTEREST
(104) This group of accounts was used to account for long-term liabilities
and to show the amount available at present and to be provided in the future
for the retirement of these debts.
(105) The State Board of Education, under the provisions of the School
Capital Outlay Amendment, Article XII, Section 9(d) , Florida Constitution,
issued Capital Outlay Bonds, Series 1974-A, to finance various capital outlay
projects in certain school districts and junior college districts. Details
pertinent to Monroe County District School Board, which participated with other
districts in the bond issue, are as follows:
District's Share of Issue $2,990,000
Date of Issue January 1, 1974
Interest Rates, % 5.5, 5.2, and 4.0
Average Interest Rate, % 5.074
Denomination $5,000
Maturity Dates 1975-1995
Callable Provisions Bonds Maturing 1985 and Thereafter on
January 1, 1984, or any Interest
Payment Date Thereafter
Date of Sale January 10, 1974
Purchaser First National City Bank of New York and
Associates
Proceeds:
Par Value of Bonds $2,990,000.00
Accrued Interest 14,601.40
Premium 75.29
District's Share of the Total
Funds Received by the State
from the Sale $3,004,676. 69
Less, Reserve for Debt Service 275,220.00
Net Amount Available $2,729,456.69
Interest Earned on Investments
While Funds were in Custody of
the State 10,255.16
Total Amount Received by the
District $2,739,711.85
123
Par.
No.
The total amount received by the District of $2,739,711.85 was deposited in the
Capital Improvement Funds, the entire amount being immediately placed in time
deposits, and is to be used by the District for authorized capital outlay
purposes.
(106) Principal of and interest on these bonds are secured by and payable
from State motor vehicle license taxes distributable for the account of the
District under the provisions of the School Capital Outlay Amendment. The
payments of principal of and interest on these bonds are additionally secured
by a pledge of the full faith and credit of the State of Florida.
INTERNAL FUNDS
(107) The Board, pursuant to Section 237.02(4) , Florida Statutes, and
Sections 6A-1.85 through 6A-1.91, Rules of the State Board of Education, 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.
(108) The Board was required by Section 64-1.87(2) , Rules of the State
Board of Education, to provide for an audit of the internal funds by a quali-
fied auditor or auditors; therefore, the audit of these funds was not included
in the scope of this examination.
(109) A report prepared after June 30, 1974, by a local certified public
accountant was on file for all the internal funds. No deficiencies were noted
in this report.
STATEMENT FROM AUDITED OFFICIAL
(110) In accordance with the provisions of Section 11.45(6) (d), Florida
Statutes, a list of audit findings was submitted to the Board. The Superin-
tendent's response to the audit findings included in this report is shown on
exhibit C.
19
EXHIBITS AND SCHEDULE
The following exhibits and schedule are attached to and form a part
of this report:
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.
Respectfully submitted,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit supervised by:
(Signed) Willard G. Hale
Audit made by:
(Signed) Gerald J. Schilling
20
EXHIBIT - A MONROE COUNTY
DISTRICT SCHOOL BOARD
COMBINED BALANCE SHEET'
June 3o, 1974
TOTAL OPERATING
FUNDS
ASSETS AND OTHER DEBITS
Assets - Other Than Fixed:
Cash $ 4, 024, 606. 74 $140, 903. 07
Accounts Receivable 1, 300, 682. 18 7, 750. 00
Taxes Receivable 70, 874. 20 67, 813. 07
Due from Other Funds:
Loans Receivable from Other Funds 344, 386. 00 231, 815. 00
Advancements to Internal Accounts 270. 50 270. 50
State Board of Education Bond Reserve 490, 307. 64
Material Stores Inventory 190, 951. 99 187, 136. 00
Fixed Assets:
Land 1, 578, 059. 56
Buildings 13,316, 559. 16
Motor Vehicles U04. 463. 99
Furniture and Other Equipment 1, 462, 901. 32
Other Debits:
Amount Available for Judgments 5, 000. 00
Amount Available for Debt Service 769, 341. 99
Amount to he Provided for Debt Service 7, 372, 081. 02
TOTAL $31, 529, 986. 29 $635, 687. 69
LIABILITIES, RESERVES, AND FOND BALANCES
Liabilities:
Judgments Payable $ 40, 000. 00 $
Section 237. 161 Loans Payable 198, 250. 00
Due to Other Funds 344, 386. 00 80, 000. 00
Bonds Payable:
State Board of Education Bonds 3, 460, 000. 00
District Bonds 419, 000. 00
Special Act 1, 205, 000. 00
Interest Payable in Future Years:
State Board of Education Bonds 2, 215, 772. 50
District Bonds 14, 178. 00
Special Act 588, 318. 76
Section 237. 161 Loans 10, 903. 75
Total Liabilities $ 8, 490, 809. 01 $ 80, 000. 00
Reserves and Fund Balances:
Reserve for Encumbrances $ 471, 739. 43 $ 96, 035. 82
Reserve for Long-term Debt Service 769, 341. 99
Reserve for Future Capital Outlay 3, 732, 476. 67
Reserve for Future Expenditures from
Federal Aid Allotments 593, 983. 34
Investments in Fixed Assets 16, 961, 984. 03
Unappropriated Fund Balances 509, 651. 82 509, 651. 82
Total Reserves and Fund Balances $23, 039, 177. 28 $555, 687. 64
TOTAL 331, 529, 986. 29 $635, 687. 64
EXHIBIT - A 21
EXHIBIT - A
DEBT CAPITAL CONTRACTED GENERAL BONDED AND
SERVICE IMPROVEMENT PROGRAM FIXED DEFERRED DEBT
FUNDS FUNDS FUNDS ASSETS AND INTEREST
$ 487, 788. 22 $3, 357, 430. 06 $ 38, 485. 39 $ $
690, 258. 00 802. 674. 18
3, 061. 13
32, 571. 00 80, 000. 00
490, 307. 64
3, 315. 99
1, 578, 059. 56
13, 316, 559. 16
604, 463. 99
1, 462, 901. 32
3, 000. 00
769, 341. 99
7, 372, 081. 02
61, 013, 727. 99 $4, 131 , 004. 05 5641, 159. 57 $16, 961, 984. 03 $8, 146, 423. 01
$ $ $ $ $ 40, 000. 00
198, 250. 00
244, 386. 00 20, 000. 00
3, 460, 000. 00
414, 000. 00
1, 205, 000. 00
2, 215, 772. 50
14, 178. 00
588, 318. 76
10, 903. 75
$ 244, 386.00 $ - - $ 20, 000. 00 $ - - $8, 146,423. 01
$ S 398, 527. 38 $ 27, 176. 23 $ $
769, 341. 99
3, 732, 476. 67
593, 983. 34
16,961, 984. 03
$ 769, 341. 99 $4, 131, 004. 05 $621 , 159. 57 $16, 961, 984. 03 $ -
S1, 013, 727. 99 $4, 131, 004. 05 $641, 159. 57 $16, 961, 984. 03 $8, 146, 423. 01
22 EXHIBIT - A
SCHEDULE 1-A MONROE COUNTY
DISTRICT SCHOOL BOARD
STATEMENT OF CHANGES IN RESERVES AND FUND BALANCES
For the Fiscal Year Ended June 3o, 1974
TOTAL OPERATING
FUNDS
Reserves and Fund Balances, July 1 , 1973 $18, 695, 392. 61 $ 685, 845. 49
Add:
Excess IDefvcienc yl of Revenue Over
Expenditures 4, 321, 572. 00 -730, 124.46
Net Increase in Fixed Assets 39, 491. 47
Adjustments to Close Prior Years Projects 17,278.80 -33•39
Reserves and Fund Balances, June 3o, 1974 $23, 039, 177. 28 $ 555, 687. 64
SCHEDULE 1- A
23
SCHEDULE 1-A
DEBT CAPITAL CONTRACTED GENERAL
SERVICE IMPROVEMENT PROGRAM FIXED
FUNDS FUNDS FUNDS ASSETS
$368, 927. 38 $ 977, 108. 92 $ 41, 018. 26 S16, 922, 492. 56
400, 414. 61 3, 454, 794. 41 596. 487. 44
39, 491. 47
-899. 25 -16,345. 19
$769, 941.99 $4, 131 , 004. 05 $621, 159. 57 $16,961, 984. 03
SCHEDULE 1-A
24
EXHIBIT - B MONROE COUNTY
DISTRICT SCHOOL BOARD
STATEMENT OF REVENUE AND EXPEND!TURFS
For the Fiscal Year Ended June An. 1Q74
Total Operating Debt Capital Contracted
Funds Service Improvement Pro
Funds Funds Funds
Rev.
Federal Sources $ 1,069,880.71 $ 726,358.71 $ $ $343.522.00
State Sources:
State 6,233,418.54 5,021,995.26 336,382.19 875,041.09
Federal Money Received Through the
State 848,611.38 238.539.43 11,246.00 588,825.95
Local Sources 4,857,837.35 4,635,208.54 217.923.04 4,702.14 3.63
Total $13,009.747.98 $10.622.101.94 $ 554,305.23 S 890.989.23 $942,351.58
Nonrevenue 3.031.609.11 16,677.28 275.220.00 2,739,711.85
Incoming Transfers 649.369,70 243,218,06 400,000.00 6,151.64
Total $16.690.726.79 $10,638,779.20 81,072,743.29 $4.030.701.08 $948.503.22
Expenditures:
Instruction:
Regular Education S 4.813.485.31 $ 4,681,086.57 $ $ 30,684.03 $101,714.71
Special Education 359,269.95 353,181.34 672.58 5,416.03
Adult Continuing Education 61,367.39 49.914.48 1.473.18 9,979.73
Vocational Education 625,266.51 564,129.97 6,996.65 54,139.89
Instruction Support Services:
Pupil Personnel Services:
Attendance and Social Work 37,685.56 36,554.15 1,031.41
Guidance Services 272,562.53 271.124.67 1,437.86
Health Services 28,348.05 28,308.54 35.00 4.51
Speech Pathology and Audiology
Services 33.244.81 27,921.71 5,323.10
Pupil Personnel Office 24,496.10 24,496.10
Instructional Media Services 210.317.34 168,322.70 32,960.85 9.033.79
Instructional Administration Services 243,472.27 242,363.51 1,108.76
Research. Planning, Development, and
Evaluation Services 88,522.10 88.485.79 36.31
EXHIBIT • B
(Continued) 25'C
MONROE COUNTY EXHIBIT - H
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT OF REVENUE AND EXPENDITURES
For the Fiscal Year Ended June go, lg7q
Total Operating Debt Capital Contracted
Funds Service Improvement Program
Funds Funds Funds
Expenditures (Continued):
General Support Services:
Board of Education $ 900,315.74 $ 250,835.46 $ 649,030.62 $ S 449.66
General Administration
(Superintendent's Office) 265.989.74 242,559.89 1,250.64 22,179.21
School Administration (Principals'
Office) 755,395.62 742.019.35 12.785.38 590.89
Facilities Acquisition and
Construction 353,341.75 353.341.75
1 Fiscal Services 129.496.65 126.445.74 3,050.91
Food Services 54,152.78 36.148.34 18,004.44
Central Services 98.379.57 80,909.66 17.469.91
Information Services 11,972.96 11,889.76 83.20
Operation and Maintenance of Plant 1,253,276.75 1.237.133.72 15,996.62 146.41
Pupil Transportation Services 485.000.00 407,220.37 76.907.05 872.58
Staff Services 35,456.33 34.996.33 460.00
Data Processing Services 42.575.52 41,423.67 1,151.55
Community Services. Remittances, and
Transfers:
Community Services 250.749.11 109.615.25 141,133.86
Remittances 285,644.65 285,644.65
Transfer of Funds 649.369.70 626.071.64 23,298.06
'rotat 512,369, 154.79 S10.768,903.66 $ 672,328.68 $ 575,906.67 $352,015.78
Excess (Deficiency) of Revenue Over
Expenditures $ 4,321,572.00 $ -130,12D.4F $ 400,414.61 $3,454 794.41 $596,487.44
Note: State funds for current operations were
received
ved primarily fromthe Florida Education Fin .e Program (Ftt?)
administered by the State Department of Allocationswere made by the State Department of
Education based mainly on reports of full-time equivalent students submitted during the current year by the
District School Board. The current year's allocation is subject to adjustment insubsequent years by the
State Department of Education for reporting errors. computational errors, and other factors. Any
adjustments for allocations received during the current year may be made in subsequent year's allocations.
EXHIBIT - B
26
MONROE COUNTY EXHIBIT - C
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
For the Fiscal Year Ended June go, 1974
411Mdhrt. et ❑,, }lamb
A m� The School Board of i ii..,orue County, Florida „^ "R
310 FLEMING STREET P. O. DRAWER 1430 vicr.eLa
DIRECT ( KEY WEST. FLORIDA 33040 DISTRICT KO 3
CAROL.- i
ettli Y.' WILHELMINA ver
\Fn L41E I ARMANDO J. HENRIQUEZ TELEPHONE CHAIRMAN
6UP RINTENVENT (305) 236-6523 DISTRICT No b
pub„ UICT C.,Hn.0
November 12 , 1975
Mr. Ernest Ellison
Auditor General
State of Florida
Tallahassee , Florida 32304
Subject : Preliminary Audit
July 1, 1973 to June 30 , 1974
Dear Mr. Ellison:
Thank you for the opportunity to comment on the list of
preliminary and tentative adverse audit findings which
apply to the period, of July 1 , i973 to June 30 , 1.974 .
Attached is a statement of explanation concerning all of
the findings and what we propose to do to correct same .
Sincerely,
e.
)47
A. J. 1-Ienriquez
AJN/vm
Encl.
EXHIBIT - C
��y (Continued)
2/
!iYN/Rl'f - C MONROE COUNTY
(Continued.'
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
For the Fescai Year Ended .Lune go, 1971
Pi OPUSED CORRECTIVE ACTION CO1.1P NG A.UDI'T REPORT
JUl ) 1, 1973. TO ARNE, 10, 1974
Audit
Report
Paragraph
Number
Maintenance, S & D (Stores and Distribution Warehouse,
and Transportation departments--Inventories:
The annual inventory of Maintenance Department stocks
shall commence June 15 , 1915 and co uinue until completed.
Inventory team shall consist of Martha Williams , Store-
keeper, Roy Hucnefcld, Tooiroom Keeper and Les Prough,
Laborer.
inventory count shall be recorded on inventory forms
prepared by Roger William: Office lien alter. Test inven-
tories will be taken by the Office Manager of Maintenance
Department and verified against inventory count taken by
the inventory team. Inventory of selected items will
also be made by the State Auditor. Inventory team should
exercise caution and not sacrifice accuracy for speed.
After completion of the inventory, the Officer Manager
will reconcile the physical count against recorded
balances and record the differences, plus or minus, on
the inventory adjustments report_ All differences be-
tween the recorded balances and the physical count will
be checked out to determine cause. After reconciliation
the physical inventory count will be posted to stock
t ii) control records .
S & D Warehouse has written instructions for taking in-
ventory .
An adequate cutoff date has now been established as
July 1, each year.
S & D Warehouse now stamps all stock inventoried with a
rubber stamp stating inventoried and date counted.
Inventory count is taken independently of the perpetual
records.
Procedures for verification of counts by inventory teams
are now used by S & D Warehouse . lle Director of Pur-
chasing spot-checks inventory taken by inven to±:y teams
to determine accuracy of count.
Tranrmo-t ion Den rnt has written instructions for
CiWing inventory i n..azsucd to the inventory team November 6 ,
1975 .
FYI/lEfT - C
(Continued) 28
MONROE COUNTY EXHIBIT - C
It mite no od)
DISTRICT SCHOOL BOARD
STATEMENT FROM ACDITED OFFICIAL
For the Fiscal Year itnled June go, 1979
Audit
Report
Paragraph
Number Prices of items nu stock cards will be chocked to make
certain that they arc the same as on the purchase order
forms. ('This iten has been in effect since September
1975) .
An adequate cuto❑ Onto will be established for the
inventory count at this department.
Procedures will he in effect as of November 5, 1975 to
insure that all iters will be covered to prevent double
counting. Bins will be nu•.tbered and so indicated on
stock cards and inventory forms . This item is 50%
(11) completed as of November 5, 1975.
In the future inventory counts will be taken indepen-
dently of perpetual records by two teams . One team will
take the first count, followed by the second team to
recheck the first team.
Future procedures for verification of counts will be in
use. We will have the inventory teams recheck one
another' s count to assure a true count. Any discrep-
ancies will he rechecked a third time.
(12) As of 197 -75, all invoices due and payable at the end
of the school year are recorded and set up as accounts
payable.
Definite steps were taken in this area to correct this.
Written qualifications and job descriptions are on file
for administrative personnel.
(31) Although we have mode some progress in the non-
instructional are; in establishing job descriptions, we
are now in the process of having a survey made by an
outside firm of all non-instructional positions .
(33) Although documents in personnel file folders are not
maintained in sequence, steps will be taken in this
direction to rectify the situation.
(35) We have twelve (17) 4-drawer fireproof file cabinets
for meeting State Rules. However, there is a nee: for
an additional 12 cabinets hut there exists a weir;ht
problem since Petennnel Department ix located on the
second floor of the building. Nevertheless , we will
EXHIBIT - C
I Con tinned)
29
EXHIBIT - C MONROE COUNTY
(Continued)
DISTRICT SCHOOL BOARD
STATEMENT FROM AUDITED OFFICIAL
For the Fiscal Year Ended June go, 1974
Audit
Report
Paragraph
Number issue a purchase order for the additional 12 cabinets
to meet State Board Regulations.
(as) With reference to monthly travel allowance paid to
employees before the filing of an average typical
month's travel, measures have been taken to correct
this . During the J.973-74 fiscal year, employees were
paid a scheduled amount and were required to file with
the Superintendent 's Office any typical month's travel
schedule.
(44) A statement requesting payment from the Florida Keys
Community College for its pro rata share of premiums
has been prepared for submission to the College.
(46) Only one bank in Monroe County (The Marathon Bank) is
computing and crediting interest quarterly on Time
Deposits. All other banks will be contacted and assure
that the same procedure is followed by them before any
other Time Deposits arc made.
(54-64) It was the intent of the Florida Statutes to give the
Board the flexibility of establishing the Superinten-
dent's salary no higher than 10% of the highest paid
employee for the sole purpose of retaining the accred-
itation of the schools . For additional clarification
and before a decision was made as to how to compute
the Superintendent's salary, we contacted the Department
of Education and, in addition, on July 1.3, 1972 we wrote
Dr. Herman Frick, Chairman of the Florida Committee,
requesting an opinion (copy attached) . On the basis of
his reply and the Department of Education that Superin-
tendents shall in every case be at a higher monthly and
annual rate than that paid to the principal or other
members of the administrative staff, the salary was so
computed.
(67-70) Guidance Clinics : As of 1974-75 the School Board con-
tracted with the three Guidance Clinics for services in
Upper, Middle and Lower Keys . We received quarterly
reports from all three. This requirement is a part of
the contract.
(45) With property as of May 31, 1972 classified as r'nimum-
$100 equipment (rather than minimum-$25) , outbo+rd
motors located at Vocational-Technical Building iC have
not been of high enough value for recording on Property
EXHIBIT - C Control Account.
(Continued)
30
OF
MONROE COUNTY EXHIBIT C
Conttnued)
DISTRICT SCHOOL BOARD
STATEMENT FROM ALPITED OFFICIAL
For the Fiscal Year Cnded June Bo, t97C
Audit
Report
Paragraph
Number
(78-77)(R9) No comments required.
(80) As of 1974-75 , all vendors invoices arc stamped "paid."
(81) The area. where unused checks are stored is secured
every evening and the keys are kept in the vault in
the Finance Department.
(89) Letter of Transmittal was submitted September 15, 1973
for Preliminary and Final Documents. Mr. Cecil Cannon,
Department of Education , responded with letter of
September 26 , 1973 specifying corrections to be made.
Due to oversight in the District, there was no follow-up
to the corrections needed, and no record in the District
or the State for final approval.
All centers are now being inventoried annually by
Property Control . Formal follow-up inventories are
conducted in the sane fiscal year for those items not
observed during the regular inventory.
The centers have been provided property control hand-
(Ss) books outlining the necessity for Board approval before
the disposal of property control items . The matter has
also boon discussed with appropriate personnel at the
centers . Furthermore, listings of items approved by
the Board for removal. are regularly sent by property
control to the Maintenance Department which does not
dispose of an item on property control. account unless
first checking via property control.
EXHIBIT - C
31