External auditors report exceptions in student activity funds; committee recommends report to board

External auditors from Malden & Jenkins presented an agreed‑upon procedures engagement on student activity funds to the Savannah‑Chatham County Public School Audit Committee on March 27 and the committee voted to recommend the report to the Board of Education.

Hope Pendergrass, the auditor presenting the report, explained the difference between an audit and an agreed‑upon‑procedures engagement: "In an agreed upon procedures engagement... the facts, just the facts, ma'am," she said, meaning management specifies the procedures and the engagement reports exceptions rather than issuing an opinion. The auditors tested about 11 procedures across 26 schools; most tests recorded at least one exception or instance where documentation was not provided.

The report listed several schools that either did not provide requested documentation or provided incorrect materials. Finance and auditors identified Johnson High School and Windsor Forest Elementary as having missing records after staff turnover; Southwest Elementary and Gadsden did not provide requested materials; Groves provided incorrect-year information. Auditors also flagged activity‑level deficits (individual club/activity balances overspent within a school's pooled bank account) and noted that deficit activity does not necessarily mean the school bank account is overdrawn. A reconciliation discrepancy was raised for Marksford Middle School, where the bank statement reconciled balance did not agree with the trial balance submitted to auditors, a difference the committee flagged for follow up (the committee noted a $2,000 difference in the report materials).

Management and finance staff told the committee the district uses a platform called School Cash for school‑level transaction recording and requires monthly reconciliations, with schools expected to reconcile by the 25th of each month. Finance staff said central office offers training, will go on site to assist schools, and has recently extended contracts or added contracted positions where needed. Auditors and committee members discussed the high risk of student activity funds relative to district resources because missing funds can be significant for a single school or club even if the overall dollar amount is small.

Committee members proposed several follow ups: a written management response to the exceptions summary outlining actions taken for missing documentation, details on the schools showing activity deficits and reconciliation differences, and consideration of a dedicated financial secretary at some schools or zone‑level support to reduce turnover and improve continuity. After discussion, a motion to recommend the external audit (student activity funds agreed‑upon procedures report) to the Board of Education was made, seconded and approved by voice vote; the chair announced the motion would be sent to the Board.

The auditors provided a summary table in their attachments of tests performed and exceptions; for several tests the entry reads "NS" (no support) where auditors did not receive requested documentation, and some instances where the supplied documentation did not permit a yes/no conclusion and was recorded as an exception. The committee asked that management provide a clear written response to the findings and to follow up on the schools identified with recordkeeping or reconciliation issues.