## Official Responsible for Ensuring CAP:

The Director of Business Affairs is the official responsible for ensuring corrective action of the deficiency.

## Planned Completion Date for CAP:

The planned completion date is June 30, 2017.

## Plan to Monitor Completion of CAP:

The Board of Education will be monitoring this corrective action plan.

## Finding: 2016-002 – Internal Control over Financial Reporting of Student Activity Accounts PROCEDURES TO PROVIDE ASSURANCE THAT ALL CASH COLLECTIONS ARE RECORDED IN THE ACCOUNTING RECORDS

Condition – The District has not established accounting procedures to provide assurance that all cash collections are recorded in the accounting records. The District records student activity revenues on the cash basis and does not have an accounting system and internal controls in place to ensure all student activity receipts have been collected and recorded. The potential exists that a material misstatement could occur in the financial statements and not be prevented or detected by the District’s internal controls.

Effect – The potential exists that a material misstatement could occur in the financial statements and not be prevented or detected by the District’s internal controls.

## CORRECTIVE ACTION PLAN (CAP):

## Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding.

Actions Planned in Response to Finding: Planned in Response to Finding: The District records student activity revenues on the cash basis and does not have an accounting system and internal controls in place to ensure student activity revenues and receipts have been properly recorded. In consideration of the guiding principles under which the student activity funds were established, the District provides opportunities for substantial student involvement in the selection, direction, and management of fundraisers. This student involvement, although of great value to those students, is an inherent internal control weakness. The District has determined the costs of implementing controls over fundraising activities, in light of the multiple locations and times of these activities, outweigh the benefits; therefore, the District will continue to rely on activity fund advisors for appropriate oversight and supervision, but will not, at this time, implement procedures and policies to provide for detail internal control processes at each fund raising location and activity.

Official Responsible for Ensuring CAP: Responsible for Ensuring CAP: The District’s Director of Business Affairs is the school official responsible for carrying out the corrective action plan.

Planned Completion Date for CAP: Completion Date for CAP: The CAP will be carried out as part of each annual audit; therefore, the CAP is ongoing.

Plan to Monitor Completion of CAP: to Monitor Completion of CAP: The corrective action plan will be monitored each year by the District financial staff and School Board as a part of the process of developing the annual audit report.

## Year: 2016-2017 Date of Report: September 29, 2017 Auditor: Clifton Larson Allen

## Finding 2017-001 – Internal Control over Financial Reporting

### Material Weakness – FINANCIAL REPORTING UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)