Agenda Item
1. Audit Project Updates
Summary: Presented by: Mr. Joel Thibodeaux, Director of Internal Audits & Compliance, Chief of Staff Division
DeKalb County Board of Education
Audit Committee Meeting
November 7, 2024
Internal Audit Updates
CTAE Business Processes – Central Office & Schools
November 2024
Internal Audit Updates
PRESENTATION AGENDA
1. Internal Audit Updates
2. CTAE Business Processes – Central Office to Schools
3
Internal Audit Updates
Current Departmental Audits
• Fleet Services – Fuel & Maintenance Scope Areas
• Meeting with new inventory management regarding initial findings
• Completion in early December with AC presentation in January
• Athletics – Critical Staff returning Mid-November, audit will kick off in the
week of November 18
• Contract for Operations & DIIT assessment has been signed. Currently
engaging vendor CESO to schedule kickoff meeting and communicate
requests for information and interviews.
4
Internal Audit Updates
School Audits
• Completed Audits – Reports in revision and available to BOE during
November 2024
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Internal Audit Updates, cont.
Booster/PTO Policy revision
Board Policy LEC & Administrative Regulation LEC-R
• Draft language for Policy LEC has been submitted to Legal
Affairs.
• Revision language for Regulation LEC-R is in final draft.
• Types of donations and provisions allowed
• Notification and/or approval of support services provided to
students through membership
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CTAE Business Processes –
Central Office to Schools
Career, Technical, and Agricultural Education
Program Overview
DCSD CTAE Program Goals: 17 Career Clusters Available to Students
• To prepare DeKalb County Schools’ students to Agriculture, Food & Natural Resources Finance
compete in a global and technological society Science, Technology Engineering &
• To prepare students to enter and meet the needs of a Architecture & Construction Mathematics
high demand and high skilled workforce Arts, A/V Technology & Communications Hospitality & Tourism
• To prepare students for post-secondary options Business Management & Administration Government & Public Administration
without the need for remediation Education & Training Manufacturing
• To prepare students to become self-directed and Law, Public Safety Corrections &
lifelong learners Information Technology Security
• To develop socially conscious students Transportation, Distribution, &
• To expose elementary and middle grade students to Energy Logistics
career awareness Human Services Marketing
Health Science
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SCOPE OF PROJECT
DCSD Career, Technical, and DeKalb High School of Technology -
Agricultural Education Program South
• Funding • Purchasing Process / Inventory
• Equipment Inventory • Student Activity Funds
• Expenditures • Record Keeping Practices
• Extended Day
• School Based Enterprises
9
CTAE Scope Area 1: Funding
Documentation reviewed:
• CTAE Middle and High School Pathways.pdf
• Division of Curriculum & Instruction Career Technical and Agricultural Education Standard
Operating Procedures Manual: Carl D. Perkins and State CTAE Grants)
• GaDOE Website(www.gadoe.org)
• Consolidated applications pulled from Georgia Department of Education Website (GaDOE)
District Level Employees Interviewed:
• Ms. Stacy Stepney, Chief Academic Officer
• Ms. Doryiane Gunter, CTAE Director
10
CTAE Scope Area 1: Funding
Perkins Funds Process:
1. Consolidated Application submitted to GaDOE – May 15
• With Superintendent and CTAE Director sign-off
2. GaDOE Review
• Award Notification – July through August
3. Fund Allocation and Final Budget Submission to GaDOE
• Allocations based on Consolidated Local Needs Assessment
• Submitted with Superintendent and CTAE Director sign-off
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CTAE Scope Area 1: Funding
Standard: GaDOE FY 24 Budget Guidance for Expending CTAE Grant
Funds
“funds made available under this Act for career and technical education activities shall
supplement, and shall not supplant, non-Federal funds (local or state funds) expended to
carry out career and technical education activities.”
Internal Controls Identified:
• Daily Review of financial data for budget adherence
• Recipients monitor to ensure avoidance of supplanting day-to-day operational costs
• Annual Reconciliation to confirm program compliance and that supplanting did not occur
12
CTAE Scope Area 1: Funding
Testing:
Auditor reviewed the related general ledger accounts and the GaDOE – LEA Consolidated
Applications to trace and vouched the funds.
Auditor verified that all the awarded funds were received and accounted for.
Auditor reviewed and verified the Annual reconciliation of the Completion Report
Results:
• The auditor’s review of funding confirmed that there are adequate processes and in controls in
place to ensure compliance. The auditor’s test and procedures confirmed segregation of duties,
required signatures and reconciliation processes. No issues were found for the review of funding.
The residual risk after consideration of the adequacy and/or effectiveness of controls/risk
mitigators is low and thus is within the DCSD risk tolerance.
13
CTAE Scope Area 2: Equipment Inventory
Documentation Reviewed:
• Munis reports were generated for the following general ledger accounts for equipment inventory:
• 561100 Supplies – Technology Related
• 561500 Expendable Equipment
• 561600 Expandable Computer Equipment
• Division of Curriculum & Instruction Career Technical and Agricultural Education Standard
Operating Procedures Manual: Purchasing – Product & Services)
• CTAE Inventory SOP.doc
• School System Equipment Inventory Management Record Spreadsheets
District Level Employees Interviewed:
• Ms. Stacy Stepney, Chief Academic Officer
• Ms. Doryiane Gunter, CTAE Director
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CTAE Scope Area 2: Equipment Inventory
Equipment Procurement Methods:
1. Departments must obtain a quote from the vendor of their choice from the
DCSD approved vendor list.
a. All vendors qualified quotes must be submitted to CTAE Instructional Coordinator for
review and initial approval. CTAE Director provides final approval.
2. Software purchases request must be requested from the Incident IQ system –
Hardware/Software
3. Computers, laptops, or printers purchase requests must be requested and
approved through the DIIT managed E-store.
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CTAE Scope Area 2: Equipment Inventory
Equipment Inventory Procedures:
CTAE inventory purchased at the District Level is managed by the CTAE
Department Chair and the CTAE Coordinators.
CTAE works with DIIT to ensure all technology equipment (Computers,
Laptops, Printers, etc.) are added to the asset list and tagged
appropriately.
Each school lab maintains an inventory of the equipment and
resources.
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CTAE Scope Area 2: Equipment Inventory
Standard: GaDOE Grant Management Procedure Manual
“The equipment inventory may be in the form of a list or electronic spreadsheet and must contain:
acquisition date; description of the equipment; identification number; identification of federal
funding by grant source; acquisition cost; who holds title; all pertinent information on the ultimate
transfer, replacement or disposition of the equipment; equipment location; equipment use; and
current condition.”
Exhibit: Inventory Management Record
_________________ SCHOOL SYSTEM EQUIPMENT INVENTORY MANAGEMENT RECORD
Career, Technical and Agricultural Education
Georgia Department of Education
Serial
Number or Source of Cost of Fund Percent Condition Disposal
Facility Facility Location of Date Description of the Equipment Equipment Equipment Source Federal of Disposal Sale
Code Name Equipment Purchased Equipment ID Number (Vendor) Funds Equipment Date Price
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CTAE Scope Area 2: Equipment Inventory
Controls Identified:
• The Schools System Equipment Inventory Management Record Spreadsheets are completed once
the school year starts and at the end of the school year.
• Each coordinator is responsible for maintaining the inventory reports for each school and each
program.
Testing:
• Interviews to obtain information regarding CTAE inventory management.
• Auditors reviewed general ledger account reports, invoices, purchase orders, software purchase
approval emails, emails for E-store approval, and quotes signed off by CTAE Director
• Auditors vouched and reconciled the School System Equipment Inventory Management Record
Spreadsheets to general ledger account reports
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CTAE Scope Area 2: Equipment Inventory
Result:
Control Failure 2A: Insufficient, incomplete, and inaccurate School System Equipment
Inventory Management Record Spreadsheets. [CTAE Department]-High Risk
• 2A-1. Missing Serial Number or Equipment ID Numbers or Name of Vendor; Missing Data. The
auditor identified that Freedom Middle School, Columbia High School, Dunwoody High School,
Redan High School, Tucker High School has some inventory items with N/A or blank for the serial
numbers, equipment id number or name of vendor. (Incomplete)
• 2A-2. Missing Date Purchased; Missing Data. The auditor identified that Champion Middle
School, Peachtree Charter Middle School, and Columbia High School had some inventory items
with no purchase date. (Insufficient & Incomplete)
• 2A-3. Not Using Updated School System Inventory Management Record; Update. The DeKalb
School of the Arts had not completed the updated record. (Inaccurate)
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CTAE Scope Area 2: Equipment Inventory
Recommendations:
• According to GaDOE FY 24 Budget Guidance for Expending CTAE Grant Funds, “An
inventory of expandable equipment and expandable computer equipment should be
maintained for control/audit purposes for a minimum of five years.”
• Inventory records must be maintained that include:
• Description of the equipment; Date purchased; Serial number or equipment ID; Vendor; Cost
of equipment; Funding source; Equipment location; Condition of equipment.
• A format identical to the GaDOE School System Inventory Management Record (shown)
should be the District standard for reporting and documenting inventory.
• In addition to the inventory audits performed by the coordinators; CTAE school
contact (CTAE Teacher) should also be required to perform a physical inventory audit
of all equipment at the beginning and close of the school year.
• A copy of the physical inventory audit reports should be provided to the coordinators.
• Any discrepancies should be reported immediately to the school administrator responsible
for inventory and the CTAE Director.
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CTAE Scope Area 2: Equipment Inventory
Improvement Opportunities:
• To strengthen internal controls regarding the safekeeping
of equipment inventory we suggest developing an
Equipment Disposal Form and Equipment Transfer Form.
• We also suggest a meeting with the Finance Department
regarding which CTAE equipment that should be listed on
DCSD Depreciation Schedule.
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CTAE Scope Area 3: Expenditures
Documentation reviewed:
• GaDOE FY24 Budget Guidance for Expending CTAE Grant Funds.pdf
• FY23-QBE-FTE-Comp-Chart_Dekalb County.xlsx (FY23 CTAE Local QBE/FTE Expenditures Compared to Perkins V Improvement Grant)
• Auditor generated MUNIS reports for the following general ledger accounts:
530000 Purchased Pro/Tech Services 561600 Expandable Computer Equipment
543000 Repair & Maintenance Service 564000 Digital/Electronic Textbooks
551900 Stud Transp Purchased-Oth Srce 564100 Textbooks – Printed
553200 Communication-Web Subscrpt/LIC 564200 Books (Other Than Textbooks)
558000 Travel – Employees 573000 Purchase Equip-Not Buses/Comp
561000 Supplies 573000 Purchase Equip-Not Buses/Comp
561200 Computer Software 581000 Dues and Fees
• DCSD Board Policy DJE: Purchasing
• CTAE Handbook.pdf (Division of Curriculum & Instruction Career Technical and Agricultural Education Standard Operating Procedures Manual:
Purchasing – Product & Services)
• Local School Accounting Handbook 13. Purchasing Department
District Level Employees Interviewed:
• Ms. Stacy Stepney, Chief Academic Officer
• Ms. Doryiane Gunter, CTAE Director
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CTAE Scope Area 3: Expenditures
Standard: Allowable Expenditures
• Supplies: Include small tools or items that are not repairable. Also, printing cost, when the supplies are a
major part of the expense would be recorded in supplies. All supply items that cannot be properly
classified as technology supplies, computer software, textbooks, or books and periodicals. Examples:
Flash Drives, SD cards, calculators, batteries, data cords, small hard drives, etc. In addition, office
supplies, paper, consumable instructional supplies and etc. for the CTAE management.
• Travel (Employees): Expenditures for transportation, meals, hotel, and other expenses associated with
staff travel.
• Consultant Services: Consultant Services includes Purchased Professional and Technical Services: Services
that can be performed only by persons or firms with specialized skills and knowledge.
• Substitute Fees: Teacher fees for the activities funded in the grant application. Serves as temporary
replacement on a daily basis for any CTAE certified teachers & non-instructional staff, such as a
paraprofessional participating in a CTAE related activity.
• Other Allowable Expenses:
• Expendable Equipment: Items with a per-unit cost less than $5000, that might otherwise be classified as “equipment”
rather than “supplies.”
• Faculty honorariums
• Materials and supplies to support curriculum development and professional development and the purchase of
equipment for instruction that supports GADOE approved CTAE Pathways. 23
CTAE Scope Area 3: Expenditures
Standard: Procedure
• Expenditures should comply with the standard accounting procedures and
guidelines established by the State Board of Education, federal legislation
and CTAE Grant Budget Guidance.
• Controls Identified:
• FY23-QBE-FTE-Comp-Chart_Dekalb County.xlsx
o Reconciles CTAE Local QBE/FTE Expenditures Compared to Perkins V Improvement
Grant
• Independent Contractor Agreement (ICA Form)
24
CTAE Scope Area 3: Expenditures
Testing:
• Traced expenditures from the Perkins Grant/Local QBE Expenditures documentation for FY23 to
the Munis Reports for the Object and Project Codes.
• Reviewed Requests for Authority to Travel on Official District Business (Professional Travel)” form
for CTAE travel.
• The form requires 4 signatures.
• Reviewed purchase orders, quotes, signature routing forms and Independent Contractor
Agreements (ICA)
Results:
The auditors review of expenditures confirmed that there are adequate processes and in
controls in place to ensure compliance. The auditor’s test and procedures confirmed
segregation of duties, required signatures and reconciliation processes. No issues were
found for the review of expenditures. The residual risk after consideration of the adequacy
and/or effectiveness of controls/risk mitigators is low and thus is within the DCSD risk
tolerance.
25
CTAE Scope Area 4: Extended Day Grant
Career and Technical Education Extended Day Grants - grants to local
school systems for the purpose of delivering work-based learning
services/experiences and leadership development activities beyond the
regular school day for students in career and technical education
programs.
Extended Day and Extended Year grants compensate teachers for time
spent on the program activities after school and during the summer.
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CTAE Scope Area 4: Extended Day Grant
Requirements:
• Local school systems implementing extended-day programs with state funds must:
• Pay high school teachers in state-approved program areas (grades 9-12) for
extended-day work performed beyond the regular school day.
• Provide planning periods during the regular school day for teachers delivering
extended-day instructional and leadership development activities.
• Schedule teachers to teach no more than one segment out of field.
• Participate in the extended-day accountability reporting process.
• Submit program details and annual reports to the department.
• Extended-day grant funds should support work-based learning, instructional
services, and leadership development in agriculture education and career and
technical education programs.
27
CTAE Scope Area 4: Extended Day Grant
Documentation Reviewed:
• Auditor generated MUNIS reports for the following general ledger accounts:
• 519910 Extra Activity Salaries 65121 CTAE – CTE Extended Day 67421 CTAE – Extended Year
74021 CTAE-AG-Extended Day 74121 CTAE-AG-Extended Year
• Georgia Department of Education Career Technical and Agricultural Education Extended Day Guidelines
• CTAE Handbook Draft.pdf (Division of Curriculum & Instruction Career Technical and Agricultural Education Standard Operating
Procedures Manual: The Program of Work Process (Extended Day Grant))
• Consolidated Application (Example: FY23 Extended Day Budget.pdf)
• GADOE – LEA Consolidated Application_Extended Year Grant_FY23.pdf
• Program of Work Reports:
• 2022-2023 Program of Work – Expectations Not Met.pdf
• 2022-2023 Program of Work – Ezra Thompson.pdf
• Monthly Reports:
• Extended Year Monthly Report Gayden.pdf
• POW Monthly Report_Expectations Not Met.pdf)
District Level Employees Interviewed:
• Ms. Stacy Stepney, Chief Academic Officer
• Ms. Doryiane Gunter, CTAE Director
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CTAE Scope Area 4: Extended Day Grant
• DCSD Extended Day Process:
• DCSD CTAE Department has a written standard operating procedure for the
Program of Work Process (Extended Day Grant).
• Each teacher who receives Extended Day funding must complete a Program of
Work (POW).
• Teachers who receive Extended Year funding are required to complete a Prior
Year Activities Report, as well as a budget request form for the upcoming year.
• The CTAE Director and the CTAE Instructional Coordinators review the Program of
Works (POW), monthly reports, and annual report.
• Reports are reviewed to ensure that the participating teacher is meeting or have
not met their plans.
• The reports are maintained in a statewide resource database (CTAERN and CNET) at
https://www.ctaern.org.
29
CTAE Scope Area 4: Extended Day Grant
Standard:
• Georgia Department of Education Career Technical and Agricultural Education
Extended Day Guidelines
“The minimum hourly rate is calculated as one hour per day based on an eight hour workday. Teachers
who work one hour beyond the school day for a 190-day school year receive “full extended day” pay. For
simplicity the hours to be worked have been standardized into 20 hours per month for full extended day.”
Testing:
• Review of provided reports included:
• Activity date
• POW category and description
• Number of hours spent
• Number of people involved in the activity.
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CTAE Scope Area 4: Extended Day Grant
Results:
The auditor review of expenditures confirmed that there are adequate processes and in
controls in place to ensure compliance. The auditor’s test and procedures confirmed
segregation of duties, required signatures and reconciliation processes. No exceptions
were found concerning extended day/extended year. The residual risk after consideration
of the adequacy and/or effectiveness of controls/risk mitigators is low and thus is within
the DCSD risk tolerance.
Improvement Suggestions:
The interview with Ms. Stepney and Ms. Gunter revealed concerns regarding teacher’s and
the amount of extended day pay received. Currently there are procedures in place
regarding the calculation of extended day pay. However, there are still concerns from the
teachers regarding the yearly extended day amount they receive. It is suggested that the
CTAE Department develop written guidance concerning the calculation of the extended day
pay.
31
CTAE Scope Area 5: School Based Enterprises
Documentation Reviewed:
• GA DOE Career Technical Instruction Coordinator Handbook
• Electronic Pymt Request.pdf
District and School Level Employees Interviewed:
• Ms. Marilynn Hollis, Coordinator
• Ms. Doryiane Gunter, CTAE Director
• Ms. Adrienne Francois, Marketing Education Teacher at Stephenson High School
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CTAE Scope Area 5: School Based Enterprises
District Point Of Sales Stores
• Redan HS - Marketing SBE - Cache'
• Dunwoody HS - Marketing SBE - The Cat Shack
• Lithonia HS - Marketing SBE - The Dog Shack
• Miller Grove HS - Marketing SBE - The Wolverine Warehouse
• Stephenson HS - Marketing SBE - The Jag Express (Operating since 2005)
• Cedar Grove HS - Marketing SBE Kiosks - New!
• Southwest Dekalb HS - Double Kiosk - New!
• Coming Soon! - The AIC Café Double Kiosk
33
CTAE Scope Area 5: School Based Enterprises
• School Based Enterprise (SBE) Set-up Process:
• Coordinators are responsible for the set-up, providing support and guidance
and ensuring the school store is in align with the CTAE program requirements.
• Fixtures and materials used to setup the SBEs are purchased using general
funds.
• Each store has a certified marketing teacher that supervises the management
of the store and teaches the students the marketing concepts to help run the
stores.
• Students conduct surveys to inquiry what their fellow students would like to
purchase from the store.
• Students review data collected and the market research to assist in determining what
items to sale.
• Students perform a cost/profit breakdown and develop the product listing.
34
CTAE Scope Area 5: School Based Enterprises
• SBE Revenue Process:
• POS Systems:
• School Store POS
• POS Unlimited
• Both systems provide the same functions, capabilities, and services
• World Pay processes the debit/credit card sales from the POS system and
then deducts their fee from the sales and makes a payment to the school
• These POS systems are compatible with MUNIS.
• Transactions from the POS systems are uploaded to the local school account
for each school store and connected to the local schools’ bank account.
• Bookkeepers for each school reconcile the sales and record the money to the
school store account in MUNIS.
35
CTAE Scope Area 5: School Based Enterprises
• SBE Inventory :
• Stores provide products and services to students, staff, and the community.
• Items sold in the stores include: spirit wear, school supplies, snacks, helium
balloons, hot drinks like coffee and frozen drinks.
• Columbia High School is in the process of setting up a store that will offer
fashion merchandise to support their fashion merchandising pathway.
• School Stores determine inventory levels based on what was sold and
purchased in prior years.
36
CTAE Scope Area 5: School Based Enterprises
Results:
No exceptions were found for the review School Based Enterprises. The residual risk
after consideration of the adequacy and/or effectiveness of controls/risk mitigators is
low and thus is within the DCSD risk tolerance.
Improvement Opportunities:
• Create opening and closing spreadsheet or form for balancing the register and
recording daily sales total.
• Create a spreadsheet or form to help maintain and keep track of the inventory for all
stores.
• Finance Department is currently looking into a different POS System (My School
Bucks) that it will also be compatible with Munis but will offer cashless sales, online
sales, and electronic payments.
37
DeKalb High School of Technology-South
DeKalb High School of Technology is a District Specialty school that provides
specialized CTAE Courses and programs. DHTS is a stand-alone, meaning it
shares students with other schools and serves as the base/center where
these students migrate to take CTAE Courses not offered at their local school.
There are currently thirteen high schools where students select and attend
elective classes at DHTS.
Specialized programs offered by the school include barbering, cosmetology,
healthcare science, manufactured engineering program, welding program,
automobile service, law and justice, audio-video-and technology.
38
DeKalb High School of Technology-South
School Level Employees Interviewed:
• Dr. Vicki Williams - Principal
• Tasha Riggins - Bookkeeper
• Blair Northern - CTAE Instructor, Automotive
• Candice Rayner - CTAE Instructor, Cosmetology
• Jerome Heath - CTAE Instructor, Barbering
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DeKalb High School of Technology-South
Scope Area: School Purchasing Process / Inventory
Process:
• CTAE Instructor must conduct research in order to determine and locate the best price and value for the items they intend to
purchase.
• Check associated budgets.
• Determine the best method for procurement of the items.
• Select the vendor.
• All vendors must have an assigned vendor number and be an active vendor in the DCSD purchasing system.
• Contact the vendor and send a list of selected items.
• Vendor sends back a quote regarding the prices of listed items.
• The quote, along with a list of the needed items, is sent with a request form to the principal for approval.
• Once approved, the bookkeeper begins the purchase order approval process through Munis.
• Items are ordered and shipped to the school.
• Once the items are delivered, the packing slip is turned over to the bookkeeper who compares the list of delivered items to the list
located in the system, in order to review any discrepancies.
• CTAE Instructors update their inventory list based on the items received.
40
DeKalb High School of Technology-South
Scope Area: Student Activity Funds
Purposes:
• Registration for CTAE Course Competitions
• Hotel Expenses
• Travel Expenses
• Club/Course Attire
• School Supplies
• Food for specific events
• Awards
Practices:
• CTAE instructors create their class budgets for the fiscal year and turn in their prospective budgets
to the principal and bookkeeper.
• Perkins and district Funds are not included in the sponsor’s budget.
• Funds collected and dispersed according the Cash Management procedures in the Local School
Accounting Handbook
41
DeKalb High School of Technology-South
Scope Area: Record Keeping Process
Practices:
• Data & documentation regarding purchases made for CTAE Courses are stored in binders for
each fiscal year
• Organizing and storing purchase order documentation in binders is an individual practice the School
Bookkeeper has implemented. It is a process she brought over from her time working at Atlanta
Technical College
Observation:
DCSD has established a protocol for the storage of records: Financial documents must be retained
and maintained by schools for a minimum of five years before they can be disposed of, however the
CTAE Department does not have any standard operating procedures (SOPs) or protocols that dictate
the storage process of CTAE documents or the duration of their retention. Development of a
standard storage process is recommended.
42
DeKalb High School of Technology-South
Results:
The controls that are currently in place are sufficient to mitigate the
risk of misuse of funds utilized to operate the CTAE Courses.
• Principal's supervision of the budget's development and organization serves
as an initial defense mechanism.
• Risks are further diminished by mandatory levels of review that are
associated with a PO Request
• Requires either a review or approval by the principal and a CTAE Coordinator.
• Bookkeeper maintaining detailed records of the purchase orders in well-
organized binders and comparing the items listed on the packaging slip to the
items listed in the system, reinforce these processes.
43
THANK YOU!
CTAE Director Ms. Doryiane Gunter,
Program Coordinators, and Staff
DHST-S Principal Dr. Vikki Williams,
Instructors, Bookkeeper, and Staff
Division of Curriculum & Instruction,
Ms. Stacy Stepney, Chief Academic Officer
Division of School Leadership,
Champion Michelle Dillard, Chief of Schools
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Follow-Up Questions or Concerns?
Audit Committee Requests for Additional Information
Office of Internal Audits & Compliance
Joel B Thibodeaux, CIA – Director
joel_b_thibodeaux@dekalbschoolsga.org
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