2022 Corrective Action Plan (1).pdf

Brian Neenan, Superintendent From: Brian Freeman, Assistant Superintendent for Business Re: 2021-22 Audit Corrective Action Plan Cc: Board of Education, Audit Committee Date: 10/5/2022 The findings and corrective actions are broken down below. Italicized comments represent the corrective action to the findings listed above it that is bold lettering. Current Year Deficiencies in Internal Control: Separation Payments – During our examination of separation payments, we noted the District has a procedure in which the payments are calculated by the Human Resources Clerk, reviewed by the Human Resources Director and subsequently paid through payroll which is certified by the Business Official. Although the calculations are reviewed, there is not a sign off by the Human Resource Director to document the calculations are consistent with contract language and other reports. We recommend the District implement procedures to document the review and approval of the separation payment calculation which should include the date and signature by the individual reviewing the calculations to ensure they are consistent with contractual language and other supporting documentation. The District will update its process to include the following practice outlined herinto. Currently every retiree receives an all encompassing letter with separation and benefits information included. Included in this process we will add a check off to the form that goes to all retirees. One check off will be consultation with the HR clerk, second check off will be years of service verification by another HR staff member, and finally a third check off by the business department staff that has been reviewed. A copy of the letter will be sent to the retiree with the information and then another copy will be placed in their permanent file. This corrective action will be completed by the audit for fiscal year 2023.

119 South Avenue, Webster, New York 14580 Main Switchboard: (585) 265-3600 • Fax Machine: (585) 265-6561 • Web Site: www.websterschools.org

During the course of our examination, we noted that the fund balance in the School Lunch Fund at June 30, 2022 totaled $2,326,165. This balance appears to be in excess of the three months average expenditures level recommended by Federal Regulation #7CFR Part 210.09, in the amount of $1,172,505. We recommend the District continue to monitor the fund balance in order to comply with the Federal Regulation. The District Food Service Department is aware of the excess fund balance for fiscal year 2021-22. The previous four years saw losses in the following manner: 2018-19: ($165,063) 2019-20: ($641,630) -Structural Program Deficit 2020-21: 759,391 Elimination of Structural Deficit The yearly average loss from 2009-10 until 2020-21 amounted to ($267,797) per year. This one year increase due to universal free breakfast and lunch will set the program up for the next ten years of losses with the elimination of the free meals program. The food service leadership team will continue to monitor monthly reports on participation, revenues, and expenditures throughout the 2022-23 year to more closely monitor the fund balance situation. Some immediate action items to address the excess will be investment in equipment, employee training, employee retention programs, and additional staffing to assist in meal development. The action plan will be implemented during fiscal year 2022-23 and adjusted throughout the year with completion set for the Summer audit of 2023. Prior Year Recommendation: We are pleased to report the following prior year recommendations have been implemented to our satisfaction: 1. During the 2021-22 fiscal year the District’s Special Aid Fund had an operating gain in the WonderCare Program, which resulted in a positive fund balance at June 30, 2022.

119 South Avenue, Webster, New York 14580 Main Switchboard: (585) 265-3600 • Fax Machine: (585) 265-6561 • Web Site: www.websterschools.org