WEBSTER CENTRAL SCHOOL DISTRICT NEW YORK COMMUNICATING INTERNAL CONTROL RELATED MATTERS IDENTIFIED IN AN AUDIT For Year Ended June 30, 2022
October 3, 2022 To the Board of Education Webster Central School District, New York In planning and performing our audit of the financial statements of Webster Central School District as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered Webster Central School District’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Webster Central School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Webster Central School District’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses. However, as discussed below, we identified certain matters involving the internal control and other operational matters that are presented for your consideration. This letter does not affect our report dated October 3, 2022 on the financial statements of the District. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with appropriate members of management, are intended to improve the internal control or result in other operating efficiencies. Our comments are summarized as follows: 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 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.
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(Current Year Deficiencies in Internal Control) (Continued) School Lunch – 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. Prior Year Recommendation: We are pleased to report the following prior year recommendation has been implemented to our satisfaction: 1. During the 2021-22 fiscal year the District’s Special Aid Fund had an operating gain in the Wonder Care Program, which resulted in a positive fund balance at June 30, 2022.
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We believe that the implementation of these recommendations will provide Webster Central School District with a stronger system of internal control while also making its operations more efficient. We will be happy to discuss the details of these recommendations with you at your convenience. This communication is intended solely for the information and use of management, the Board, audit committee, and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. We wish to express our appreciation to the business office staff for all the courtesies extended to us during the course of our examination.
Rochester, New York October 3, 2022
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