The Office of Auditor of Accounts (AOA) reviewed revenues received by the Sussex Technical School District (the School District) in Fiscal Year 2015, as reported by the School District in the Schedule of School District Revenues, and the internal controls surrounding the School District’s receipt process. During Fiscal Year 2015, Sussex technical received over $27.8 million in revenue from federal, State, local, and other sources.
AOA’s review of internal controls specifically focused on cafeteria, adult education, and student activity funds since these revenues are generated through cash receipts. We found that the School District did not always ensure the physical security of cash, segregate duties appropriately, and monitor adherence to cash receipts controls.
We recommend that the School District work to develop policies and procedures that are detailed enough to easily identify individual responsibilities and ensure an adequate segregation of duties. Finally, management should complete and document their monitoring activities, including reconciliations, to ensure a proper segregation of duties, and hold all individuals involved in the revenue process accountable for their responsibilities.