Mt. Vernon Register-News

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August 30, 2013

Audit finds problems at ROE

(Continued)

The audit found the ROE did not have good review of its journal entries,

“In 18 of 242 journal entries made, there was no supporting documentation other than the journal entry listing and approval by the regional superintendent was not documented,” the audit states. “In 12 of 32 journal entries tested, while the Regional Superintendent signed off on the journal entry snapshot, there was no documentation to support the purpose of the journal entry. ... In 13 of 32 journal entries tested, the purpose of the journal entry appeared to be to shift expenditures to match grants.”

The ROE answered the finding that now all journal entries are reviewed and approved by the superintendent or assistant superintendent

“The Regional Office noted that after the initial transition year, journal entries were minimal,” the audit states. “The bookkeeper will also continue to attend needed training opportunities to follow proper accounting procedures.”

A cash account not recorded was for its University Class fund, started in February, 2012.

“In order to transfer the amounts received from July 1, 2011, to Feb. 15, 2012, the (ROE) prepared checks made out to the new bank account totaling $57,130,” the audit states. “Instead of recording these checks as a transfer to another bank account within the general ledger, the Regional Office recorded the checks as a reduction in revenue.”

In addition, all receipts and disbursements to University Classes fund were put in the account instead of the general ledger.

“Failure to record bank accounts in the general ledger results in inaccurate financial reporting and increases the risk of misappropriation of assets,” the audit states. “According to (ROE officials), the bookkeeper believed that more than one bank account could not be entered into the general ledger.”

The ROE answered it separated obligated funds to separate bank accounts “so that cash balances would not appear inflated.”

“The ROE stated that it is working with support from the financial account system company and has moved all bank accounts and related activity into the general ledger.”

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