Webster-XC-22 (4).pdf

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS FINANCIAL REPORT For Year Ended June 30, 2022

TABLE OF CONTENTS

Independent Auditors’ Report

1–2

Statement of Cash Receipts and Disbursements for year ended June 30, 2022

3-5

Notes to Financial Statement

Auditors’ Findings and Evaluation

6

7-9

INDEPENDENT AUDITORS’ REPORT To the Board of Education Webster Central School District, New York Report on the Audit of the Statement of Financial Statements 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, 2022 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, 2022, 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.

1

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 12, 2022

2

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS For Year Ended June 30, 2022

Cash Balance July 1, 2021 $ 18,908 21,668 18,939 70 549 92 307 94 329 10,012 476 438 305 251 217 705 114 389 6,863 1,927 2,488 1,258 1,017 2,004 256 10,601 89 3,414 1,684 9 445 $ 105,918

Receipts $ 38,160 14,545 11,971 31,931 31,617 1,328 1,475 1,657 36 234 620 3,129 537 23,303 2,520 320 130 7,360 4,838 2,070 1,240 8,965 93 985 $ 189,064

Disbursements $ 57,068 21,061 5,743 3,087 75 37 31,655 329 1,935 1,506 1,122 36 251 260 166 2,861 694 29,845 1,670 26 673 128 8,118 9,169 1,944 2,198 798 95 771 $ 183,321

Cash Balance June 30, 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

3

Sheet #2

Cash Balance July 1, 2021 $ 6,519 19,034 11,865 1,001 114 743 2 3,743 962 274 135 62 267 523 5,706 3,564 11,653 527 203 1,397 3,658 266 4,546 274 2 143 $ 77,183

Receipts $ 26,843 12,112 14,425 27,198 405 111 4,294 668 200 375 475 1,217 1,621 6,103 180 721 7,160 6 18,283 112 629 $ 123,138

Disbursements $ 6,519 40,111 14,208 3,901 4,429 934 113 2,403 682 199 130 21 207 517 338 1,676 3,291 56 220 1,442 8,168 96 18,897 121

$

1,403 110,082

Cash Balance June 30, 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

4

Sheet #3

Cash Balance July 1, 2021 $ 74 14,967 133 1,834 2,990 13,861 298 4,068 54,333 5,870 $ 98,428

Receipts 3,696 8,921 9,775 8,498 282 1,795 158,294 1,874 $ 193,135

Disbursements $ 3,696 11,772 406 8,841 6,931 1,395 73,438 3,974 $ 110,453

Cash Balance June 30, 2022 $ 74 12,116 133 1,428 3,924 15,428 580 4,468 139,189 3,770 $ 181,110

$

$

392 7,193 164 5,208 4,782 61,995 4,845 303 84,882

$

$

250 10,248 23 6,476 4,963 144,484 4,671 496 171,611

$

$

2,695 19,764 1,413 1,706 2,877 13,575 76,410 216 99 118,755

$

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

$

400,284

$

676,948

$

488,738

$

589,125

$

$

(See accompanying notes to financial statement)

5

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS NOTES TO FINANCIAL STATEMENT June 30, 2022

(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.

6

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, 2022. 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. Schroeder High School: Current Year Deficiency in Internal Control – Cash Our examination of the June 30, 2022 bank reconciliation revealed that the listing of outstanding checks was incomplete, and as a result the reconciliation did not tie out to the general ledger. We recommend that the administration periodically review the bank reconciliations and accounting records prepared by the Central Treasurer. Profit and Loss Statements During the course of our examination, we noted that a profit and loss statement prepared by the Schroeder Theater Co. Club did not trace to the general ledger. We recommend profit and loss statements are prepared using the financial records of the club and that any variances are reviewed. Sales Tax Deficit During the course of our examination, we noted that the sales tax had a deficit balance at year-end. We recommend that the administration review this account and develop the necessary corrective action. 7

Schroeder High School Best Buddies

Willink Middle School Lego Club

8

(Prior Year Recommendations) (Continued) Schroeder High School – 1. Reconciliations of items sold to amounts collected were present for all receipts we examined.

*

*

*

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 12, 2022

9