Webster-XC-23.pdf

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS FINANCIAL REPORT For Year Ended June 30, 2023

TABLE OF CONTENTS

Independent Auditors’ Report

1–2

Statement of Cash Receipts and Disbursements for year ended June 30, 2023

3-5

Notes to Financial Statement

Auditors’ Findings and Evaluation

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7-9

INDEPENDENT AUDITORS’ REPORT To the Board of Education Webster Central School District, New York Qualified and Unmodified Opinions We have audited the accompanying statement of cash receipts and disbursements of the Extraclassroom Activity Funds of the Webster Central School District for the year ended June 30, 2023 and the related notes to the financial statement. Qualified Opinion In our opinion, except for the possible effects of the matter discussed in the basis for qualified opinion paragraph, the financial statement referred to in the first paragraph presents fairly, in all material respects, the cash receipts and disbursements of the Extraclassroom Activity Funds of Webster Central School District for the year ended June 30, 2023, in accordance with the cash basis of accounting as described in Note 1. Basis for Qualified Opinion Internal accounting controls are limited over the cash receipts from the point of collection to the time of submission to the Central Treasurer. Accordingly, it was impracticable to extend our audit of such receipts beyond the amounts recorded. Emphasis of Matter – Basis of Accounting We draw attention to Note 1 of the financial statement, which describes the basis of accounting. This financial statement is prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter.

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Responsibility of Management for the Statement of Cash Receipts and Disbursements Management is responsible for the preparation and fair presentation of this financial statement in accordance with the cash basis of accounting described in Note 1; and for determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statement in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statement that is free from material misstatement, whether due to fraud or error. Auditor Responsibilities for the Audit of the Financial Statement Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:     

Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Rochester, New York December 6, 2023

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WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS For Year Ended June 30, 2023

Cash Balance July 1, 2022 $ 15,152 25,167 28,844 70 474 55 269 94 9,405 445 973 305 191 1,159 382 232 321 2,777 2,462 905 1,019 1,246 256 6,270 215 2,456 9,851 7 659 $ 111,661

Receipts $ 42,625 15,907 3,655 22,332 100 4,901 1,538 440 96 982 114 6,019 390 30,191 2,893 2,320 180 8,415 16,869 1,807 11,220 440 6,066 104 1,076 $ 180,680

Disbursements $ 57,777 22,170 4,344 3,875 70 67 39 3,360 1,318 817 96 884 360 5,994 558 18,943 2,264 759 48 7,962 10 9,244 966 7,265 1,949 7,435 101 1,084 $ 159,759

Cash Balance June 30, 2023 $ 18,904 28,155 18,457 474 88 230 94 10,946 665 596 305 289 913 407 64 11,569 2,893 2,833 1,703 905 1,151 1,699 246 13,895 1,056 3,955 947 8,482 10 651 $ 132,582

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Sheet #2

Cash Balance July 1, 2022 $ 5,766 9,769 11,525 22,769 114 214 5,634 948 75 205 41 435 481 6,585 3,509 14,465 471 163 676 2,650 176 3,932 153 114 $ 90,870

Receipts $ 30,251 22,209 4,485 36,640 1,734 534 4,353 652 144 210 2,127 210 445 384 1,042 3,121 3,717 249 322 12,907 525 6,120 711 1,540 886 $ 135,518

Disbursements $ 5,766 31,015 22,825 2,761 11,575 58 1,628 176 1,712 793 235 975 365 562 82 622 4,238 5,619 39 258 515 13,293 360 2,942 477 1,438 1,718 $ 112,047

Cash Balance June 30, 2023 $ 9,005 10,909 24,493 25,065 56 320 358 8,275 807 75 144 180 1,193 280 364 302 7,005 2,392 12,563 432 154 483 2,264 341 7,110 387 216 (832) $ 114,341

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Sheet #3

Cash Balance July 1, 2022 $ 74 12,116 133 1,428 3,924 15,428 580 4,468 139,189 3,770 $ 181,110

Receipts 4,890 13,726 16,660 9,505 269 3,526 181,977 560 $ 231,113

Disbursements $ 4,916 9,638 16,900 11,159 2,604 314,917 188 $ 360,322

Cash Balance June 30, 2023 $ 48 16,204 133 1,428 3,684 13,774 849 5,390 6,249 4,142 $ 51,901

$

$

439 7,389 364 11,459 11,579 185,776 6 275 217,287

$

$

250 13,237 10,592 11,643 166,563 240 202,525

$

$

2,553 22,819 1,249 1,729 4,145 13,756 158,899 42 292 205,484

$

2,364 28,667 885 1,729 3,278 13,820 139,686 276 17 190,722

$

589,125

$

749,836

$

849,415

$

489,546

$

$

( ) Denotes red figure (See accompanying notes to financial statement) 5

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS NOTES TO FINANCIAL STATEMENT June 30, 2023

(Note 1)

Accounting Policy:

The transactions of the Extraclassroom Activity Funds are considered part of the reporting entity of the Webster Central School District. Consequently, the cash balances are included in the financial statements of the School District as part of the Custodial Fund. The accounts of the Extraclassroom Activity Funds of the Webster Central School District are maintained on a cash basis, and the statement of cash receipts and disbursements reflects only cash received and disbursed. Therefore, receivables and payables, inventories, long-lived assets, and accrued income and expenses, which would be recognized under generally accepted accounting principles, and which may be material in amount, are not recognized in the accompanying financial statement.

(Note 2)

Cash and Cash Equivalents:

Cash and cash equivalents is comprised of four checking accounts. The balance in these accounts is fully covered by FDIC Insurance.

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WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS AUDITORS’ FINDINGS AND EVALUATION

We have examined the statement of cash receipts and disbursements of the Webster Central School District’s Extraclassroom Activity Funds for the year ended June 30, 2023. As part of our examination, we made a study and evaluation of the system of internal accounting control to the extent we deemed necessary to render our opinion. There are inherent limitations in considering the potential effectiveness of any system of internal accounting control. Human errors, mistakes of judgment and misunderstanding of instructions limit the effectiveness of any control system. In particular, cash being handled by numerous students and faculty advisors at various functions provides an atmosphere of limited control over those receipts. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District’s financial statements will not be prevented or detected and corrected on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above. General Findings: Current Year Deficiency in Internal Control – Profit and Loss Statements During the course of our examination, we noted two instances at Schroeder High School (EBLA Club and Yearbook) and two instances at Spry Middle School (Student Council and Washington Trip) in which profit and loss were not signed by the Student Treasurer. In addition, we noted that the Student Treasurer for the Willink Washington Trip Club was not involved in the preparation of profit and loss statements. We recommend the Student Treasurer together with the Faculty Advisor prepare profit and loss statements at the close of each fundraising event. In addition, these statements should be given to the Central Treasurer to be retained for our review at year end.

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Schroeder High School FEA

Willink Middle School Lego Club Library

Spry Middle School School Band

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We wish to express our appreciation to all client personnel for the courtesies extended to us during the course of our examination.

Rochester, New York December 6, 2023

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