Obion County Board of Education
November 1, 2010

Agenda Item: VIII.B.

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 is attached. For the 2009 – 2010 fiscal year audit, the auditors brought to our attention several weaknesses and we have concurred with all of the auditors’ findings. The first of several meetings has been held with all school principals and bookkeepers to begin the process of re-educating all school administrators and finance personnel in the area of school finance and emphasizing compliance with the Tennessee Internal School Uniform Accounting Policy Manual. The second meeting will be held during November and we will continue to meet at least quarterly until all audit findings are corrected. As for the individual school cafeteria agreed upon procedures, the State no longer requires a written report when auditors do not note any exceptions. For the 2009 – 2010 fiscal year audit, no exceptions where noted in testing the individual school cafeteria agreed-upon procedures.

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

Staff Recommendation:

No recommendation or Board action is necessary.