Audit finds districtwide weaknesses in controls over school activity funds

What happened

An external audit found two divisionwide material weaknesses in how schools handle cash receipts and independently review activity-fund transactions. Auditors reported no misstatements; the district says it has created a controls guide and is clarifying who must review and document transactions.

Why it matters to families

Activity funds support clubs, athletics, field trips and fundraisers. Weak controls can make it harder to confirm that all money collected is recorded and that payments and accounting entries are properly checked.

The evidence

At the Nov. 9 board meeting, staff presented Brown Edwards’ audit of activity funds for the year ended June 30, 2026. It identified two divisionwide material weaknesses and eight school-specific exceptions, including two repeat issues, but no misstatements. The findings concerned cash collected at multiple locations and insufficient separation of duties where schools have one bookkeeper; the district reported issuing a best-practices and internal-controls guide and meeting with each school about corrective steps.

The source