Purpose of Audit

The purpose of our audit was to evaluate the cash disbursement process for the period July 1, 2015 through March 17, 2017.

Background

The Global Concepts Charter School is located in in the City of Lackawanna in Erie County and had 934 students during the 2016-17 school year. The School, which is a public school financed by local, State and federal resources that is not under the control of the local school board, is governed by a five-member Board of Trustees. Operating expenses for the 2016-17 fiscal year totaled approximately $11.3 million.

Key Findings

• The Board did not ensure that the policies and procedures in the charter and bylaws were followed and at times allowed the Board Chair to control all aspects of the disbursement and purchasing processes.
• The School’s charter states that checks over $5,000 must have dual signatures and may be signed by the Board Chair or his or her designee, but the bylaws designate the Treasurer as the check signer.
• School officials did not seek competition for 39 of the 48 purchases we reviewed.

Key Recommendations

• Review and update cash disbursement and purchasing policies to ensure they are consistent with the charter and bylaws.
• Establish clear lines of authority for preparing and signing checks, approving purchases and approving claims for payment.
• Ensure that School officials secure quotes or competitive bids when required, review all quotes that are received and publically advertise to meet the School’s procurement needs.