Case Study – It’s Storytime
During the 2016-2027 school year, XYZ Elementary School managed a Principal-Operated FeeBased After School Care Program for the first time. It serviced close to 40 students and revenues generated from this program amounted to approximately $24,500, mostly from After School Care (ASC) Program Services (the school also offered a Story Hour Program)10. According to reports from the schools Free/Reduced Meals Program administered by the Department of Food and Nutrition, most of the ASC Program participants were eligible for free/reduced lunch. Those students eligible to participate in the meals program received a $1.00 discount from the regular ASC Program fee of $8.00 per day. In addition, two students were eligible to receive financial assistance from the subsidizing child care agency 10.
Our review of the records and associated activities of the After School Care and Story Hour Programs disclosed that during its first year of operation, program records were disorganized; the payment information on many of the student registration cards was not properly/consistently maintained and the information disclosed many errors and omissions; and attendance rosters and ancillary records were incomplete or not on file. Ultimately, the projection of revenues that should have been generated by the program (based on
student participation) disclosed a revenue shortfall of approximately $(8,300).
Based on the details from the scenario, list three concerns that may arise during an audit? How can the principal remedy these deficiencies moving forward?
Instructions:
Write a thorough response discussing all steps that you would take as the principal of the school to ensure this no longer occurs. Keep in mind that this error cannot be repeated as it is an audit exception
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