Audit reveals $3.2 million in potential funding losses

A recent government meeting highlighted significant findings from an audit of two campuses, revealing issues related to financial management and attendance tracking that could impact state funding.

The audit uncovered unreconciled funds in the vaults of two campuses, with one campus reporting an insecure vault door that was not monitored. Additionally, three out of eight disbursements tested lacked complete approval or supporting documentation, attributed to turnover in the financial clerk position. While the deposits were verified as made to the bank, the absence of proper documentation raises concerns about financial oversight.

Another critical finding involved the 1290 and 1291 liability accounts, which are meant to be cleared monthly. The audit revealed that several campuses failed to adhere to this requirement, prompting recommendations for improved procedures to mitigate associated risks.

The audit also focused on attendance records, revealing that five campuses had approximately 42,900 unverified and no-call absences, translating to an estimated loss of $3.2 million in state funding. Unverified absences occur when the reason for a student's absence is not documented, which can lead to funding losses if students are absent without valid reasons. The report emphasized the importance of accurate attendance tracking, as unverified absences can escalate into unexcused absences, potentially resulting in truancy notifications for students.

Further issues included inadequate training for clerks responsible for attendance, with some principals not attending essential training sessions at the start of the school year. The absence of self-audits at the audited campuses was also noted, which are intended to ensure accuracy before final audits are conducted.

The findings underscore the need for improved documentation and adherence to attendance procedures to safeguard funding and maintain compliance with district policies. The financial services and campus accounting departments are reportedly working on implementing the recommendations to address these issues.