Internal audit finds half‑cent surtax spending allowable but calls for stronger documentation and website transparency
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
RSM reported no disallowed half‑cent expenditures in its sample but recommended that the district formalize documentation of allowability reviews, update website project records, and strengthen piggyback contract checks; management pledged changes and a March follow‑up.
RSM, the district's contracted internal auditors, told the Manatee County School Board at its workshop that the half‑cent sales surtax program is being managed within allowability parameters but needs clearer documentation and public reporting. "We did not identify any instances of expenditures not being allowable," said Ava Dorasamy of RSM, summarizing the audit. "We have two low‑risk observations and one process improvement opportunity."
The audit examined how sales‑surtax revenues and expenditures are collected, reconciled and monitored, including procurement support and approval flows. RSM recommended formalizing documentation for the off‑workflow allowability review that staff currently performs in addition to PeopleSoft approvals so there is a clear audit trail. Management committed to adopting revised controls and an action plan with some controls implemented by March.
RSM also found website gaps: several recent years' project data were missing and some projects were incorrectly listed as funded by half‑cent. "Those data relevance issues have already been corrected," RSM said, and the firm provided examples of "best in class" public reporting for the district to consider.
A third recommendation concerned piggyback contracts, where the district relies on another entity's procurement. RSM advised stronger documentation of the original procurement records and a double‑check review to reduce risk of procurement findings or potential clawbacks.
Board members pressed staff about oversight: who signs off on allowability determinations and whether PeopleSoft captures sufficient detail. District staff said PeopleSoft documents multiple approval layers but acknowledged the off‑workflow capital‑accountant review is not yet captured in the same formalized way. "They're doing the steps, but just making sure we correctly document it so when it's audited, it can be seen," Jim Daniels, audit‑committee chair, said.
The audit included a management action plan; RSM said it will follow up on outstanding observations in subsequent audits and the five‑year internal audit plan. The millage report remains in process and will be presented to the audit committee in March, RSM and committee members said.