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Humboldt auditors flag fundraiser accounting lapses; board approves annual audit
Summary
Auditor Marcy Williams reported two audit findings related to resale-fundraiser recordkeeping and a corrected cash shortage; the Humboldt City School Board approved the audit after review.
Marcy Williams, an auditor with ATA, told the Humboldt City School Board that the district's annual audit included two findings related to resale-fundraiser accounting and a corrected cash shortage and theft.
The audit summary presented by Williams said school-level restricted fund balances and revenues were reported and that, for the three schools covered in her portion of the audit, total revenues were about $340,000 and expenditures about $328,000, leaving net income of “right more than $10,000,” she said. Williams said the audit noted a lack of accountability for resale fundraisers and that sales tax had not been paid on purchases used in resale activities at the junior–senior high school. She also reported a cash shortage tied to a yearbook fundraiser that the district corrected.
The findings mattered because they point to internal controls the auditor said should be strengthened, Williams told the board. “This was related to a fundraiser for, during our audit at school, we noted lack of accountability related to school resale fundraisers … the fundraiser collection analysis reports were not being completed,” Williams said. She added that at the junior–senior high school “sales tax is not being paid on multiple purchases used in resale activities.”
Board members asked questions about the size of the district's funds and how restricted balances are used. A separate section of the audit presented larger district-wide figures that the auditor characterized as largely cash and grant receivables; those figures were discussed during the same audit presentation and left on the record for board review.
After discussion, a motion to approve the audit was made and seconded; the board voted in favor and the chair announced, “Ayes have it,” with no nays recorded.
The board did not adopt additional, formal corrective orders during the meeting. The superintendent and district staff said they would follow up to address the audit's recommendations and to clarify procedures for resale fundraisers and sales-tax compliance.
The audit presentation and the board vote were taken during the regular meeting's business agenda.
