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Show BOX ELDER RICK SCHOOL Board of Education Releases Audit Report Of BEHS Accounts 8, 1953 (Honorable Board of Education Box Elder Co. School District Brigham City, Utah Gentlemen: We have examined the and records of the Box Elder high school for the purpose of verifying the accuracy of the recorded cash receipts r and disbursements for the period which commenced on July 1, 1947, and ended June 30, 1952. Our examination included of comprehensive available data with respect to cash receipts, examination of checks and invoices issued during the period, confirmation of bank balances, and such other auditing procedures which could be applied and which appeared to be appropriate in the circumstances. As a result of our examination, we present this report iwhich includes: (1) text of comments and explanatory detail; (2) statement of cash receipts and disbursements for the fiscal years ended June 30 1948, 1949, 1950, 1951 and 1952, designated exhibit A; (3) statement of cash balances at July 1, 1947, and at June 30, 1948, 1949, 1950, 1951 and 1952, designated schedule (4) statement of ascertained income from athletics and other activities for the year ended June 30, 1951, designated Dep. schedule Date five-yea- test-check- s A-- A-- 2 Explanatory Comments In conducting the examination, our attention was larly directed toward reconciling cash receipts as recorded in the records with cash receipts determined from available sources. (For 'the year ended June 30, 1951, all records pertaining to cash, Including receipt books and the cash receipts journal, are missing. A statement of cash receipts has been prepared for this year based on all ascertained information, indicating that receipts for that year amounted to $23,760.51, and resulting in an indicated cash shortage of $7,611.52, as reflected in the tabulation: Payor & Source Preston H. S. football guarantee ... (Boise H. S. football guarantee Jordan H. football guarantee 23,760.51 Deposits .... $17,511.17 743.71 CAsh diSbur. 18,254.88 . Resulting cash bal. At June 30, 1951 'Actual cash on hand at June 30, 1951 . (per annual audit ."t report) (Determined shortage .. swimming 8,717.24 200.00 & 39.75 wrest. 3.00 U. H. S. A. A. ... spring sports 21.55 U.'HB.A.A. 27.00 spring sports U.H5JV.A. spring sports football Co. Co. Co. . 9 36.80 . . UJH.S.A.A. 1 185.50 ... Bd 'of Ed., B. E. Sch Dist, Instruc. Bd of Ed., B. E. Sch Dist., Fac equip Bd of Ed., B. E. Sch Dist., instruc. (Bd of Ed, B. E. Scl Dist., instruc. Weber H. S., Expspeech meet So. Cache H. S. basketball tickets .... Less: ,5 .. S. U.H SJ4J4. swimming it wrest. U. H. S. A. A. Co. $ 3,211.61 s 30-49 g A-- 2 1952 deposits in the bank, and performed the duties of a cashier as well as those of a bookkeeper, resulting in the entire lack of internal control. The ordinary precaution of bonding an employee handling cash funds was not observed. The treasurer was not bonded. The control and supervision of the financial transactions presumably rested with the high school principal, but apparently little, if any, supervision with respect to the treasurer's activities was exercised. This is evident from the fact exceeded that disbursements the recorded receipts In each of the years under review, a condition which certainly should not have been tolerated. In the annu.al audit reports of the Box Elder County School District for the' fiscal years ended June 30, 1949, and June 30, 1950, which included a brief report on the examination of the 'Box Elder high school, the attention of the Board was directed to the lack of controls and accounting proce-duieinadequate at the high school. Upon receipt on June 9, 1952, of the audit report for the fiscal year ended June 30, 1951, which disclosed that all records pertaining to cash receipts were missing, the Board promptly initiated the adoption of adequate internal controls and accounting procedures, which at the present time appear satisfactory. In the course of our examination, several identifiable checks were found to have been received and deposited in the school bank account without having been recorded" in the cash records of the school. It is cash in the apparent that amount of these checks was erroneously appropriated and not accounted for and the deposited checks were substituted in lieu thereof. The checks showdate of deposit, ing payor, source of funds, and amount are detailed as follows: five-yea- Cash on hand July 1, 1950 (per annual audit report) Receipts detailed in schedule 1951, - (Editor's notes The followingis the complete text with sup-- 1 porting schedules o! the recent audit made by the Lincoln G. Kelly and company, oi accounts and records oi cash receipts and r disbursements lor the period beginning at July 1, 1947 and ending June 30. 19S2 at Box Elder high school. The audit report was released by the board oi education on Monday morning and is published here as a matter of general interest at no cost to the board of education.) Lincoln G. Kelly & Co. Certified Public Accountants Salt Lake City, Utah September Statement of Cash Receipts and Disbursements For the Fiscal Years Ended Juno 30, 1948, 1949, 1950. Exhibit 26.33 15.00 10.00 124.27 - 14.10 70.50 So. Cache H. S. 193.50 Football tickets ... So. Cache H. S. 165.50 football tickets No. Cache H. S.. 137.50 basketball tickets .... No. Cache H. S 101.00 football tickets .... Bear River HE. 139.00 basketball tickets .... 8 1,105.72 cash $ The track foreman watches his men plade 7,611.52 $2,094.30 Details with respect to the var On March 28, 1952, a check in ious sources of receipts and their classification for the year end- the amount of $300.55 was 6ent ed June 30, 1951, are presented to the Box Elder high school by in schedule A-the Utah High School Activities In connection with our review association for expenses in conof accounting and office proce nection with the A basketball dures, it was observed that in tournament. This check cleared many instances .amounts were the bank on August 22, 1952. It received for which receipts were was endorsed in ink as follows: not currently issued. At times, 13ox Elder High School, C. Jean amounts were placed in the Shonka, Treas. This deposit vault, which was apparently does not appear in the bank ackeipt open throughout the day, count of the high school, nor is thus offering access thereto to there any receipt made in the persons other than those re high school cash book for the sponsible for or designated to amount of the check. The handle cash funds. Disburse- amount therefore remains unments were made for many accounted for by Miss Shonka. items without a purchase order Miss Shonka had been released approved by the principal and of the responsibility of making many payments were made deposits prior to that date. without being properly approved During the periods under reand without supporting docu view, the school sold tickets to ments. Obligations of the school the student body for games were not paid promptly upon played away from home. The receipt of an invoice and, in proceeds from these tickets were many instances, not for several months after payment was due, (Continued on Following Page) The admissions tax was not paid at all in the years 1950 and 1951. Large sums of money were at various times kept on hand In the vault. Entries in the cash book were not made currently, and evidence indicates that such for were entries neglected months at a time. The accounting records were in the custody of the treasurer and she made all of the entries and postings and she also han died all of the cash, made the long steel bars under the ties and rails. He sees them dig in for leverage and brace themselves for the push. Then he booms out, Yo, Heave, and the track moves about two feet. This is repeated over and over until the track is again close enough to the hillside of low grade copper ore for the big steam shovels to dig in, or make their cut. That was in 1926, and the action took place on one of the levels of Kennecotts Bingham Canyon mine. Today, you see an entirely different picture. Bulldozers and road graders have replaced picks and shovels in setting and smoothing the track grade. An ingenious track shifter has taken the place of men with steel bars to slide the track in position. Because of such machines, electric shovels and locomotives, and hundreds of other improvements, daily production has increased from 94,000 tons of ore and waste material in 1926 to 225,000 tons today. Because of these improvements the number ofjobs for Utah people also has increased. In 1926 there were about 3,300 employees in the Utah Copper family. Today, there are 5,600 employees. The increased efficiency since 1926 is import ant. It has made possible the processing of ore containing as little as eight pounds of copper to the ton. Being able to treat such low grade ore (once considered waste material) has lengthened the life of the mine. These vast changes benefit all of us. More Utah people have jobs. Payrolls and supply purchases are larger. And bigger tax payments help meet the cost of our schools and other government services. Industrial progress, as represented by the ingenious track shifters, has benefited us all. F 9 Rennecott Copper Corporation Box Elder NEWS Brigham City, SJtab Wednesday, October 28. 1953 A Good Neighbor Helping to HAMILTON DRWGS t Build a Better Utah X |
