Biennial Audit Report

a month ago

BIeNNIAL AUDIT REPORT

As part of our commitment to transparent financial management, we are sharing the results of our biennial audit by the State Board of Accounts. The audit identified areas where our financial reporting procedures need improvement, mainly related to bank reconciliations, federal grant management, and internal controls.

These findings concern procedures and record-keeping, not missing money or improper spending. However, they do indicate that we need better financial systems and controls. The school corporation has developed detailed corrective action plans for each finding, including improved bank reconciliation procedures, enhanced federal grant oversight, and upgraded financial reporting systems. Some improvements have already been implemented, with others scheduled for completion by August 2025.

Links to complete audit reports and corrective action plans are available below. Questions may be directed to the Superintendent's office: 219-362-7056.

Financial Statement Audit Report

Federal Compliance Audit Report

Supplemental Compliance Report

SUMMARY

The State Board of Accounts recently completed an audit of La Porte Community School Corporation's finances from July 2022 through June 2024. The audit found issues with how some finances were tracked, recorded, and reported. These findings don't mean money was misused or missing—they point to problems with our financial procedures and record-keeping that need to be amended.

FINDINGS EXPLAINED

  1. Bank Reconciliation Issues—There was more in the bank than what showed in the records. This is a repeat finding that has been an issue since 2016 and will not be rectified until we move to a new accounting software, which we are in the process of finalizing soon.  The software we use was incorrectly set up, and until we are able to move to a new program, we are reconciling to receipts using an external spreadsheet. 
  2. Annual Financial Reports—Errors were found in our yearly financial reports, which resulted in inaccurate information.
  3. Grant Management—Certain federal grant funds were misreported. 
  4. Student Attendance Records—We couldn't provide complete documentation (proof of residency) for student enrollment because previous records were erroneously destroyed by a former employee at the middle school level. 
  5. Athletic Ticket Sales Documentation—The incorrect form was used to report and track athletic ticket sales.
CORRECTIVE ACTION STEPS
Our administration, led by Dr. Sandra Wood (Superintendent) and Dr. M. Greg Hunt (Assistant Superintendent of Business & Operations), has developed specific plans to address each finding:
  • Improve bank reconciliation procedures - Anticipated Completion Date: August 31, 2025
    • Pay all payroll claims within the month they occur to correct timing factors
    • Investigating change to new financial software 
  • Enhance financial reporting accuracy - Anticipated Completion Date: August 31, 2025
    • Implement additional review steps when completing the Annual Financial Report
    • Treasurer will review the AFR prepared by the Deputy Treasurer before uploading to Gateway
  • Strengthen grant management - Already begun (Spring 2025)
    • Ensure only La Porte's portion of Special Education data is reported on the SEFA
    • Verify Federal Award ID numbers for accuracy before submission Conduct review of SAM.gov for ALN numbers
  • Improve student record management - Already begun (Spring 2025)
    • Maintaining enrollment documentation for all students 
    • Documenting proof of residency. Reaching out to families who have missing documentation due to the purge.
    • Tracking attendance properly per LPCSC Attendance Policy #5200 and Student Records Policy #8330
  • Correct ticket sales procedures - Already begun (Spring 2025)
    • Implement use of the required SA-4 form for athletic ticket sales 
    • Ensure proper reconciliation between ticket sales and money collected 
    • Train staff on proper documentation procedures

Frequently asked questions


Q: Does this audit indicate misuse of funds? 
A: No. The audit findings relate to reporting procedures, internal controls, and compliance with technical requirements. There were no findings of fraud, misappropriation, or misuse of funds.
Q: How serious are these findings? 
A: We take all audit findings seriously. While these findings indicate areas where we need to improve our financial processes, they primarily relate to technical reporting requirements and do not impact our educational programs or the financial stability of the Corporation.
Q: Who is responsible for addressing these issues? 
A: The administration, led by our Superintendent and Assistant Superintendent of Business & Operations, is responsible for implementing the corrective action plans. The School Board will provide oversight to ensure these plans are properly executed.
Q: Will this affect school funding or programs? 
A: No. These findings will not impact our funding or our ability to deliver high-quality educational programs. In fact, improving our financial systems will ensure that we maximize the resources available for student learning.
Q: When will these issues be resolved? 
A: Some corrections have already been implemented. Our comprehensive action plan includes timelines for each finding, with most actions scheduled for completion by August 2025.
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