Audit finds area of noncompliance for Hillsboro Schools
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The Auditor's Office of the State of Ohio has released the results of the Hillsboro City Schools' 2009 audit.
Conducted by Balestra, Harr & Scherer, CPAs Inc. of Piketon, the audit noted areas of material weakness and reported noncompliance in regard to $643,157 funds from a grant.
"A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that the School District’s internal control will not prevent or detect material non-compliance with a federal program’s compliance requirements," according to the audit.
District treasurer Debbie Lawwell said the finding was the result of an oversight that did not appropriate funds for grant dollars that were spent, even though the district had the funds to spend.
"It was in a grant," Lawwell said. "The money was there. It was just an oversight. We spent more money than we appropriated. If we had appropriated more money it would have been fine. No excuses on my part; I probably should have checked it."
As stated in the audit report, "During the course of the audit, we identified material financial statement misstatements which should have been prevented or detected by the district’s internal controls over financial reporting. Material misstatements were identified in the following area: Improperly recorded intergovernmental receivable, deferred revenue and intergovernmental revenue in fiscal year 2009. Adjustments had to be made to correct ending balances in the Ohio School Facilities Project Fund and Governmental Activities for improperly recording intergovernmental receivable and deferred revenue. The District should implement application and monitoring controls over financial reporting to ensure that all financial statement transactions are accurately and completely reported," according to the audit.
The audit stated "The Ohio Revised Code ... requires obtaining a reduced amended certificate ifthe amount of the deficiency will reduce available resources below the current level of appropriation. This could lead to overspending. The appropriations exceeded total available resources at year end by $643,157 in the IDEA-B Fund. The District should monitor its available resources and ensure that amended certificates of estimated resources are obtained when it is determined that revenue collected will be greater or less than the amount in the official certificate of estimated resources.
Ohio Revised Code Section 5705.39 provides in part that total appropriations from each fund shall not exceed the unencumbered balance plus estimated resources. No appropriation measure is effective until the county auditor files a certificate that the total appropriations from each fund do not exceed the total official estimate or amended official estimate. The appropriations exceeded total estimated resources at year end by $643,157 in the IDEA-B Fund. The District should monitor its amended official certificate of estimated resources and ensure that appropriations do not exceed estimated resources."
Lawwell, who became treasurer of the district in early June, said the end of the fiscal year was June 30. "Lots of things had to happen in those 30 days," she said. "You can either use that as an excuse or say that it won't happen again.
Former treasurer Jeff Anderson left the district last March, she said, and that an interim treasurer took care of business until Lawwell began in June.
"So in one year, the district had three treasurers," Lawwell said.
Overall, Lawwell said, the audit report was positive.
"To me, this is manageable," she said. "It won't happen again next year. But I don't like to have any citations at all, period. I came from East Clinton, and at my last audit I had zero (findings). I am very particular. I will take all of this into consideration, but it's hard to make excuses or justify it."
Under financial highlights, the audit stated key financial highlights for 2009 are as follows:
• Net assets of governmental activities decreased $179,024 which represents a 0.3 percent decrease from 2008.
• General revenues accounted for $19,771,005 in revenue or 77.6% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for
$5,717,415 or 22.4 percent of total revenues of $25,488,420.
• The district had $25,667,444 in expenses related to governmental activities; $5,717,415 of these expenses were offset by program specific charges for services, grants or contributions. General
revenues of $19,771,005 were also used to provide for these programs.
The Auditor's Office of the State of Ohio has released the results of the Hillsboro City Schools' 2009 audit.
Conducted by Balestra, Harr & Scherer, CPAs Inc. of Piketon, the audit noted areas of material weakness and reported noncompliance in regard to $643,157 funds from a grant.
"A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that the School District’s internal control will not prevent or detect material non-compliance with a federal program’s compliance requirements," according to the audit.
District treasurer Debbie Lawwell said the finding was the result of an oversight which led to not enough money being appropriated for grant dollars that were spent, even though the district had the funds to spend.
"It was in a grant," Lawwell said. "The money was there. It was just an oversight. We spent more money than we appropriated. If we had appropriated more money it would have been fine. No excuses on my part; I probably should have checked it."
As stated in the audit report, "During the course of the audit, we identified material financial statement misstatements which should have been prevented or detected by the district’s internal controls over financial reporting. Material misstatements were identified in the following area: Improperly recorded intergovernmental receivable, deferred revenue and intergovernmental revenue in fiscal year 2009. Adjustments had to be made to correct ending balances in the Ohio School Facilities Project Fund and Governmental Activities for improperly recording intergovernmental receivable and deferred revenue. The District should implement application and monitoring controls over financial reporting to ensure that all financial statement transactions are accurately and completely reported," according to the audit.
The audit stated "The Ohio Revised Code ... requires obtaining a reduced amended certificate ifthe amount of the deficiency will reduce available resources below the current level of appropriation. This could lead to overspending. The appropriations exceeded total available resources at year end by $643,157 in the IDEA-B Fund. The District should monitor its available resources and ensure that amended certificates of estimated resources are obtained when it is determined that revenue collected will be greater or less than the amount in the official certificate of estimated resources.
Ohio Revised Code Section 5705.39 provides in part that total appropriations from each fund shall not exceed the unencumbered balance plus estimated resources. No appropriation measure is effective until the county auditor files a certificate that the total appropriations from each fund do not exceed the total official estimate or amended official estimate. The appropriations exceeded total estimated resources at year end by $643,157 in the IDEA-B Fund. The District should monitor its amended official certificate of estimated resources and ensure that appropriations do not exceed estimated resources."
Lawwell, who became treasurer of the district in early June, said the end of the fiscal year was June 30. "Lots of things had to happen in those 30 days," she said. "You can either use that as an excuse or say that it won't happen again.
Former treasurer Jeff Anderson left the district last March, she said, and that an interim treasurer took care of business until Lawwell began in June.
"So in one year, the district had three treasurers," Lawwell said.
Overall, Lawwell said, the audit report was positive.
"To me, this is manageable," she said. "It won't happen again next year. But I don't like to have any citations at all, period. I came from East Clinton, and at my last audit I had zero (findings). I am very particular. I will take all of this into consideration, but it's hard to make excuses or justify it."
Under financial highlights, the audit stated key financial highlights for 2009 are as follows:
• Net assets of governmental activities decreased $179,024 which represents a 0.3 percent decrease from 2008.
• General revenues accounted for $19,771,005 in revenue or 77.6% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for
$5,717,415 or 22.4 percent of total revenues of $25,488,420.
• The district had $25,667,444 in expenses related to governmental activities; $5,717,415 of these expenses were offset by program specific charges for services, grants or contributions. General
revenues of $19,771,005 were also used to provide for these programs.