YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The School District received bequests from two estates from 1996 through 1998.  The only restriction placed on the gifts by the estate bequests was that the school board approve all project funding.  Expenditures exceeded the board’s approved amount or the board did not set an approved amount for some projects.  In addition, the school district’s accounting records did not include all of the estate monies.  A $100,000 certificate of deposit and an investment account valued at $80,300 at June 30, 2000, were not included in the accounting records.  Also, the interest earnings were not properly allocated to the estate monies.  Four interest payments totaling $5,440 from the certificate of deposit were not credited to the estate monies.   

At the time the school district’s swimming pool was built, the school district entered into an agreement with the City of California to open the pool to residents during the summer and non-school hours.  The city agreed to contribute $10,000 each year to help with the costs of maintaining and operating the facility.  However, this agreement expired in July 1995, and the city has not paid any additional monies since that time.  The admission fee of $2 per person per day and the rental charge for private parties of $45 per hour does not cover the cost of operation during the summer.  During summer operations, the school district lost approximately $11,600 and $12,600 during 2000 and 1999, respectively.  This does not appear to be a prudent use of school district monies.  Tax dollars which have been earmarked for education should not be used to offset losses in the operation of a public swimming pool.    

The School District Board discussed items in closed session that were not allowed to be discussed under the provisions of the Sunshine Law. These included bus rates, greenhouse bids, bequests from citizens and companies, and budget revisions.   

The school district’s central office receives cash and checks from various sources on a daily basis.  The largest source of these receipts is from the cafeteria.  For the two years ended June 30, 2000, over-the-counter receipts from the cafeteria were approximately $440,000.  The receipts are usually transmitted to the central office the day of the receipt or the next day.  The receipts are not deposited intact. Also, the receipt slips are not reconciled to the composition of the bank deposits.  According to the cafeteria manager, the cafeteria does not compare actual meals served to receipts.  A periodic review is necessary to ensure that the district is receiving all cafeteria receipts.   

The district has used the same engineering firm since 1989.  In May 2000, the district renewed the agreement with this firm until December 2001 without considering services from other vendors as required by state law.  The agreement requires the school district to use the firm on all major construction projects.    

The district does not have formal written bidding policies and procedures for non-capital expenditures.  The decision of whether to solicit bids for a particular purchase is made on an item by item basis.  The school district did not solicit bids or did not maintain adequate bid documentation for computers costing approximately $60,000 or football uniforms and equipment costing more than $11,000.   

The school district has not established adequate records to account for district property.  Also, the district’s inventory procedures and the district’s procedures for the disposal of fixed assets are not adequate.