Published: Monday, June 27, 2011
Audit points to issues in Edmonds School District
EDMONDS -- The state auditor this month cited the Edmonds School District for failing to strictly enforce its policy on how employees use district credit cards.
There was no misappropriation of public funds, the auditor found. However, by failing to adequately enforce its own rules, the district put public funds at risk, the report stated.
Specifically, an audit of 51 credit card transactions during the 2009-2010 fiscal year found:
•Purchases totaling $8,990 were split so individual purchases would fall below the district's single-purchase limit of $2,500.
A meal was purchased with a card meant only for bus passes and that was not to leave the district office.
Receipts and accompanying documentation were not provided following travel in four instances.
Two purchases totaling $100.49 lacked itemized receipts for meals purchased.
District policy called for notifying employees by letter when they broke the rules. That didn't happen, the auditor found. The same policy -- written last year in response to earlier auditor recommendations -- also calls for suspending or canceling cards if problems persist. Different employees were involved in each instance cited by the auditor, district spokesperson DJ Jakala said.
The full report is at http://tinyurl.com/EdmondsAudit.
Credit card spending was just one of several areas examined by the audit, which also reviewed the district's handling of enrollment, safety net funding, payroll and more.
The audit report also is separate from a larger review, published in May, that issued an "unqualified opinion" in favor of the district's finances, which means the district is considered a low risk.
In a response to the June audit, the district stated the issues were procedural and it would increase staff training and be more consistent in applying the rules.
"There has been no evidence of any illegal purchases or any loss of funds; however, we take this very seriously and as our policy states we are providing written direction to a first-time offender as well as verbal direction," Jakala said in a statement. "There has been no determination as of this time whether this policy will be revised or changed by the school board."
There was no misappropriation of public funds, the auditor found. However, by failing to adequately enforce its own rules, the district put public funds at risk, the report stated.
Specifically, an audit of 51 credit card transactions during the 2009-2010 fiscal year found:
•Purchases totaling $8,990 were split so individual purchases would fall below the district's single-purchase limit of $2,500.
A meal was purchased with a card meant only for bus passes and that was not to leave the district office.
Receipts and accompanying documentation were not provided following travel in four instances.
Two purchases totaling $100.49 lacked itemized receipts for meals purchased.
District policy called for notifying employees by letter when they broke the rules. That didn't happen, the auditor found. The same policy -- written last year in response to earlier auditor recommendations -- also calls for suspending or canceling cards if problems persist. Different employees were involved in each instance cited by the auditor, district spokesperson DJ Jakala said.
The full report is at http://tinyurl.com/EdmondsAudit.
Credit card spending was just one of several areas examined by the audit, which also reviewed the district's handling of enrollment, safety net funding, payroll and more.
The audit report also is separate from a larger review, published in May, that issued an "unqualified opinion" in favor of the district's finances, which means the district is considered a low risk.
In a response to the June audit, the district stated the issues were procedural and it would increase staff training and be more consistent in applying the rules.
"There has been no evidence of any illegal purchases or any loss of funds; however, we take this very seriously and as our policy states we are providing written direction to a first-time offender as well as verbal direction," Jakala said in a statement. "There has been no determination as of this time whether this policy will be revised or changed by the school board."
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