Obion County Board of Education
October 5, 2009

Agenda Item: VIII.A.

Individual School Activity Fund Audit and
Individual School Cafeteria Agreed Upon Procedures Report

Background Information:

Annually, the System’s individual school activity funds and cafeterias are audited by an independent certified public accountant. Our contract for the past several years has been with Alexander, Thompson, Arnold PLLC.  The individual school activity fund audit and the individual school cafeteria agreed-upon procedures report are attached. For the 2008 – 2009 fiscal year audit, the auditors brought to our attention weaknesses in the areas of purchase orders and dual signatures. Although the number of purchase order deficiencies and checks lacking a dual signature has declined over the past couple of years, we concurred with the auditors’ findings. A meeting has been held with all school principals to emphasize the importance of purchase orders, dual signatures, and compliance with the Tennessee Internal School Uniform Accounting Policy Manual. As for the individual school cafeteria agreed upon procedures, the auditors noted exceptions regarding inventory test counts. Ms. Judy Denman is addressing this exception with the cafeteria managers. As a whole, our individual schools have worked hard and have made great progress in correcting audit exceptions.

A hard copy of the reports is available for those Board members who wish to have a copy.

Staff Recommendation:

No recommendation or Board action is necessary.