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The audit did find two material weaknesses, as compared to three last year, and three significant deficiencies as compared to six in the previous audit. In all cases, recommendations have already been implemented or are being addressed.
"Overall I am happy with our progress," VanLeer said. "The staff has worked tirelessly to do what is necessary to produce, manage and monitor the district budget.
"We will continue to take good care of taxpayer dollars and we most certainly will continue to improve. I am proud of our work and I believe procedures have been properly implemented."
One of the material weaknesses is bank reconciliation. Although improvements have already been implemented, it was still cited as a weakness in this audit. The auditor also said the district has responded to additional recommendations made.
Several improvements in this area also were noted by the auditor including that bank reconciliations are now timely and no unidentified differences noted.
Journal entries are another material weakness. Journal entries are being reviewed by two people other than the preparer as previously recommended, but were being deleted from the system once posted.
VanLeer said a problem with the district's budget software is being addressed to correct this issue.
The audit notes that significant progress has been made in the area of segregation of duties, which had been cited in past audits.
Under significant deficiencies, the auditors recommend that financial statements be reviewed before the audit by both the preparer and another person that is independent of the audit preparation to help detect errors. The audit found the district partially implemented the recommendations from last year in this area.
VanLeer said staff will require additional training as it pertains to the recommended completion and preparation of the financial statements and Schowalter & Jabouri will provide the training.
Audit adjustments are another concern and the auditors recommend the district monitor activity and balances in escrow accounts as it would other bank accounts.
The district said it will maintain additional spreadsheets to record transactions monthly and those will be reviewed with the monthly bank reconciliation.
The auditors also found that the budget adopted for the 2008-09 school year was developed by a prior staff and did not match what was entered into the software.
The first budget revision was rounded and did not match exactly, VanLeer said, but exact figures have been entered since then.
Multiple levels of review also are occurring by several employees, she added.
The audit found the district has implemented documentation of internal controls, a fraud risk assessment and child nutrition eligibility and verification procedures which have all been cited in the past.
A representative of the accounting firm told the school board that even though many of the deficiencies found were actually corrected before the year ended, they are still required to report them. She said the district had made significant strides in addressing past issues.
Several board members pointed out that the audit began when a different administrative team was in place and many changes and improvements were implemented under interim Superintendent Dr. Jane Reed and now Superintendent VanLeer who took over in January.
"This (the audit findings) reflects back to old management," said Scott Byrne, board member. "We're moving in the right direction."
Public school districts are required to do an audit every two years, however the Washington School District has an annual audit.
VanLeer said she's happy with the progress made, but there are more improvements to be made.
"We will continue to improve," she said.
