Schools dispute audit of fund-raising accounts

A Rubber Chicken mixer at Lewis and Clark High School induced some heartburn for Spokane Public Schools.

The Washington state auditor’s office dinged the district in June because not every ticket to the mixer was tracked. There were other problems. Low marks came for an unapproved and untracked yearbook sales at Shadle High School and 354 missing “Go Cards,” sold for a fund-raiser at Rogers High School.

For the fourth time in recent years, the state auditor’s office has found problems with Spokane Public Schools’ handling of fund-raising events tied to Associated Student Body accounts, a common weak area in many school systems. Student clubs regularly hold fund-raisers and deposit proceeds into ASB accounts under the guidance of an adviser. Teachers make up the bulk of advisers.

But this time, the audit seemed too picky to school administrators.

After tightening rules last fall and requiring additional training for student club advisers, Brian Benzel, the superintendent of Spokane Public Schools, fired back at the state auditor’s office.

“After two years of diligent efforts on the part of our business office, school ASB managers and others, we believe that the audit finding is narrow and unduly critical,” states Benzel in a letter dated June 16 to the acting audit manager of the state’s Spokane-based audit team.

The daunting task of managing hundreds of student-run fund-raisers has taxed already busy principals, Benzel said.

“The principals shared with me the high degree of anxiety and stress that this issue is creating, based on the inability of many people to know where the next technical finding may occur,” Benzel wrote. “At what point, I must ask, are we being asked to spend thousands of dollars to chase nickels and dimes?”

It appears that the letter paid off for the district.

“They’re not going to audit it next year. They told us,” said Mark Anderson, Spokane School District associate superintendent.

The state office commonly gives agencies time to fix their weak spots, said Washington State Auditor Brian Sonntag.

“It’s a practice of ours,” Sonntag said. “It’s not a case where there’s been a theft or embezzlement. We want to give them an opportunity to put better controls in place. I’d rather allow them the time to do that and then we’ll see.” The audits carry no penalty for the schools.

Sonntag said the give and take between the school and the state auditor’s office is part of the process. The fact remains that ASB funds are public money and must be run with strict controls, he said.

“ASB funds, boy, there’s nothing more common in school district audits than issues that will pop up with ASB funds,” Sonntag said.

The audit examined records from September 2002 to August 2003. In Spokane Public Schools, approximately $3.1 million is held in ASB accounts districtwide.

In the 2002-2003 school year, Ferris had the largest ASB fund with almost $619,000 and the cleanest record. Lewis and Clark had the second largest fund with $541,000, North Central had $394,000, Shadle had $444,000 and Rogers High School had $268,000.

The audit listed several findings, including:

• Activity advisers did not consistently estimate how much would be earned at a fund-raiser and compare that with what was actually earned and deposited into accounts.

• Inventory for fund-raisers was not adequately controlled, monitored or reconciled. What happened to remaining inventory couldn’t be determined.

• Prior approval was not obtained from principals for all fund-raisers.

• Receipt books and other paperwork were not consistently kept and organized.

Soon after the audit was released, Benzel requested a list of the fund-raisers reviewed by the state. He received a letter explaining six items of concern, including an entertainment book sale at North Central High School where the club failed to note inventory in the club minutes.

The follow-up report also noted that ASB minutes were not consistently signed at Rogers, Ferris, Lewis and Clark and North Central High School.

“It’s not that we’re not taking this seriously,” Anderson said. “They know we are. We felt they got a little too picky.”