Webster-XC-25.pdf

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS FINANCIAL REPORT For Year Ended June 30, 2025

TABLE OF CONTENTS

Independent Auditors’ Report

1–2

Statement of Cash Receipts and Disbursements for year ended June 30, 2025

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, New York (the District) for the year ended June 30, 2025 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 the District for the year ended June 30, 2025, 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 November 26, 2025

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WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS For Year Ended June 30, 2025

Cash Balance July 1, 2024 $ 500 19,551 17,375 19,410 474 842 75 191 10,122 665 723 305 288 819 219 2,171 23,023 1,728 3,066 324 5,098 1,302 1,910 241 20,382 214 5,692 798 6,039 201 $ 143,748

Receipts $

47,128 18,793 4,258 28,215 9,681 102 350 1,178 7,672 178 535 208 478 255 7,782 36,763 3,471 3,000 2,201 440 2,000 200 12,420 912 13,269 1,542 7,723 687 6,165 1,147 $ 218,753

Disbursements $ 500 66,679 26,863 9,091 2,871 363 91 787 4,492 104 281 236 571 65 11 8,483 27,228 3,091 2,389 2,114 440 1,164 239 12,117 790 8,579 1,209 6,906 651 7,903 891 $ 197,199

Cash Balance June 30, 2025 $ 9,305 14,577 25,344 9,681 576 479 334 582 13,302 739 977 277 195 754 463 1,470 32,558 2,108 3,677 411 5,934 1,263 2,213 363 25,072 547 6,509 834 4,301 457 $ 165,302

3

Sheet #2

Cash Balance July 1, 2024 $ 18,414 23,620 19,800 1,200 429 336 41 358 11,392 487 103 289 10 2,573 353 182 352 6,981 2,476 12,502 432 154 848 2,110 226 10,190 707 384 395 (860) $ 116,484

Receipts $ 40,816 14,359 6,444 21,720 260 2,223 177 125 1,767 520 440 118 587 870 4,480 1,372 11,462 150 6,521 48 373 1,637 $ 116,469

Disbursements $ 54,196 15,934 4,662 4,968 27 3,173 302 29 85 533 359 527 118 536 2,514 373 4,775 882 11,723 129 3,727 70 402 43 650 $ 110,737

Cash Balance June 30, 2025 $ 5,034 22,045 21,582 17,952 689 336 41 331 10,442 362 74 289 50 3,807 514 95 403 5,337 2,103 12,207 432 154 1,338 1,849 247 12,984 685 355 352 127 $ 122,216

4

Sheet #3

Cash Balance July 1, 2024 $ 76 23,327 133 1,428 5,754 12,732 888 7,618 41,625 3,279 $ 96,860

$

Receipts 4,999 18,836 17 18,020 10,086 464 5,230 309,156 $ 366,808

Disbursements $ 5,026 20,222 133 1,445 17,377 8,540 626 2,720 272,446 904 $ 329,439

Cash Balance June 30, 2025 $ 49 21,941 6,397 14,278 726 10,128 78,335 2,375 $ 134,229

$

$

$

$

12,153 4,275 8,480 12,268 264,288 40 311 301,815

$

$

2,131 33,038 885 1,453 2,771 16,364 56,367 276 90 113,375

$

65 11,213 885 4,321 8,540 8,666 199,345 385 233,420

$

2,066 33,978 1,407 2,711 19,966 121,310 316 16 181,770

$

470,467

$ 1,003,845

$

870,795

$

603,517

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

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS NOTES TO FINANCIAL STATEMENT June 30, 2025

(Note 1)

Accounting Policy:

The transactions of the Extraclassroom Activity Funds are considered part of the reporting entity of the District. Consequently, the cash balances are included in the financial statements of the District as part of the Custodial Fund. The accounts of the Extraclassroom Activity Funds of the 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 District’s Extraclassroom Activity Funds for the year ended June 30, 2025. 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 Finding: Current Year Deficiency in Internal Control – Washington Trip During the course of our examination, we noted a large cash balance in the Washington Trip at both Willink of $78,335 and at Spry Middle School of $121,310 at yearend. We recommend Administration develop a plan to spend down available funds to an appropriate level. Thomas High School: Prior Year Deficiencies Pending Corrective Action – Profit and Loss Statements During the course of our examination, we noted one instance in the National Honor Society in which a profit and loss statement was not signed by the Faculty Advisor or Student Treasurer. 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. 7

(Thomas High School) (Prior Year Deficiencies Pending Corrective Action) (Continued) Receipts During the course of our examination, we noted one instance in the Titan Service Scholars Club in which a receipt was deposited to the bank account several days after the cash was received. In an effort to maintain accountability and control over receipts, we recommend every effort be made in the future to deposit cash collections on a more timely basis. Willink Middle School: Prior Year Deficiency Pending Corrective Action – Untimely Deposit During the course of our examination, we noted one instance in the Student Run Play where a cash receipt was deposited in an untimely manner. In an effort to maximum accountability and control over receipts, we recommend every effort continue to be made to deposit cash collections on a more timely basis. Spry Middle School: Current Year Deficiencies In Internal Control – Sales Tax Our examination revealed one instance in Student Council where sales tax was paid on items intended for resale. We recommend every effort be made to issue resale certificates (Form ST-120) to vendors when making purchases of merchandise intended for resale and to collect sales tax upon the resale of merchandise. Change Funds During the course of our examination, we noted that the change fund for the Drama Club was established from the Faculty Advisor’s personal funds. We recommend that all change funds deemed necessary, be established by a check made payable to the Faculty Advisor. At the conclusion of the event, at year end, the change funds should be re-deposited in the extraclassroom bank account.

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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 November 26, 2025 9