Webster-XC-24.pdf

WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS FINANCIAL REPORT For Year Ended June 30, 2024

TABLE OF CONTENTS

Independent Auditors’ Report

1–2

Statement of Cash Receipts and Disbursements for year ended June 30, 2024

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 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, 2024 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, 2024, 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, 2024

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WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS For Year Ended June 30, 2024

Cash Balance July 1, 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

Receipts 48,410 16,477 3,826 23,010 842 100 1,147 4,748 275 48 372 6,980 297 32,886 1,924 2,100 4,830 180 14,560 766 14,954 16,138 795 3,573 820 $ 200,058

$

Disbursements $ 66,814 25,081 4,908 3,600 113 1,186 94 5,572 148 48 373 94 5,216 142 21,432 3,089 1,867 1,379 637 29 14,349 771 8,467 842 14,401 944 6,016 10 1,270 $ 188,892

Cash Balance June 30, 2024 $ 500 19,551 17,375 19,410 474 842 75 191 10,122 665 723 305 288 819 2,171 219 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

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Sheet #2

Cash Balance July 1, 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

Receipts 48,099 12,342 4,210 22,942 1,200 508 367 1,702 6,350 80 28 145 285 1,623 275 170 443 1,500 2,072 3,083 814 11,272 265 9,652 1,492 1,306 395 (575) $ 132,045

Disbursements 9,005 59,008 18,421 5,655 3,142 79 87 1,981 3,233 400 455 243 202 352 393 1,524 1,988 3,144 449 11,426 380 6,572 1,172 1,138 (547) $ 129,902

Cash Balance June 30, 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

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Sheet #3

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

Receipts 4,848 17,981 19,720 7,482 524 4,548 80,477 $ 135,580

Disbursements $ 4,820 10,858 17,650 8,524 485 2,320 45,101 863 $ 90,621

Cash Balance June 30, 2024 $ 76 23,327 133 1,428 5,754 12,732 888 7,618 41,625 3,279 $ 96,860

$

$

$

$

13,793 3,024 10,775 13,031 19,711 484 60,818

$

$

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

$

489,546

$

528,501

$

$

233 9,422 3,300 11,282 10,487 103,030 411 138,165

$

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

$

547,580

$

470,467

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

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WEBSTER CENTRAL SCHOOL DISTRICT EXTRACLASSROOM ACTIVITY FUNDS NOTES TO FINANCIAL STATEMENT June 30, 2024

(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, 2024. 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: Prior Year Deficiency Pending Corrective Action –

Profit and Loss Statements During the course of our examination, we noted one instance at Willink Middle School (Washington Trip) and one instance at Shroeder High School (Reveille Club) in which profit and loss were not signed by the 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.

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During the course of our examination, we noted one instance in the Titan Service Scholars Club in which receipts were 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. Schroeder High School: Prior Year Deficiency Pending Corrective Action – Sales Tax Deficit During the course of our examination, we noted that the sales tax account had a deficit balance at year-end. We recommend the Administration review this account and develop the necessary corrective action. Current Year Deficiency in Internal Control –

Sales Tax Our examination revealed one instance in which 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 the merchandise. Willink Middle School: Current Year Deficiency in Internal Control – Untimely Deposit During the course of our examination, we noted one instance in the Ski Club 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. Sales Tax During the course of our examination, we noted one instance in the Student Run Play club where sales tax was not remitted on sales for a taxable fundraiser. We recommend a continued effort be made to comply with New York State Tax law.

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Schroder High School D.R.E.A.M Club Rotary/Interact Cultural Arts Science Olympiad

Willink Middle School Lego Club Library Club

Spry Middle Library Club Yearbook

We recommend that the status of these clubs be reviewed. If future financial activity is not anticipated, they should be closed in accordance with the Board of Education policy. Prior Year Recommendations: We are pleased to report that the following prior year recommendations have been implemented to our satisfaction: Schroeder High School – 1. Deposit slips examined contained appropriate signatures. Willink Middle School:

2. Deposits from fundraising events were prepared individually and were traceable to the general ledger. *

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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, 2024

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