21 Major Problems Auditor Found in CUSD’s Books, Vote NO on Prop E

Cooking the Books

cooking the books comic stripFrom our independent observations, it’s patently clear that CUSD is rife with financial mismanagement.

Here are a few of the problem areas we’ve observed:

  • Out-of-control spending,
  • Overspending, 
  • Waste,
  • Lack of internal financial controls,
  • Lack of independent oversight,
  • Failure to comply with accounting best management practices, and
  • Failure to comply with public accounting rules and procedures.

The entire community of Coronado must endure an everlasting monument to CUSD’s financial mismanagement — the School Pool fiasco.

pool-lap-swimmersIn case you need additional proof, below are the dismal results of a mandated audit of CUSD’s finances for the fiscal year ending June 30, 2012.

The auditor found at least 21 problems that are really instances of financial management at CUSD.

21 problems!

CUSD has been very, very busy cooking their books.

Obviously, CUSD is untrustworthy. CUSD can’t be trusted with more of OUR money from the proposed Prop E property tax hike on US!

Caught Red Handed21 Problems in 2012 Audit!

The number and variety of problems with CUSD’s books are shocking and disgraceful.

The auditor found problems with CUSD’s . . . financial statements . . . state awards . . . payroll . . . no internal controls to live within budget . . . cash receipts . . . bank statements . . . School Pool (BBMAC) director . . . Child Care director . . . credit card fraud & abuse . . . expenditure approvals . . . receipts evidence . . . bank deposit reconciliations . . . revenue potentials for major fundraiser & events . . . attendance record-keeping . . . teacher-reported rosters . . . overstated average daily attendance (ADA) . . . and more.

Read the entire Christy White Associates 79-page audit in PDF format by clicking here. Christy White Associates describes itself as a Professional Accountancy Corporation.

CUSD AUDIT FOR YEAR ENDING JUNE 30, 2012

Here are the 21 Problems:

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – page 60-69 of CUSD audit available by clicking here.

(1) Financial Statements – Significant deficiencies identified?  YES

pinocchio long nose(2) State Awards – Significant deficiencies identified?  YES

(3) Internal Control Over Payroll:

  • Departments do not obtain prior approval for overtime and there are no controls to ensure budget is not exceeded.

(4) Internal Control Over Cash Receipts:

  • BMAC Pool [School Pool] director processes cash receipts with no review from an independent person.
  • Director of Child Care Services processes payments with no review from an independent person.

(5) Internal Control Over Credit Card Transactions:

  • Policies regarding usage of credit cards is not effective to prevent fraud or abuse of District assets.

(6) Associated Student Body:

man in suit secretly pocketing money billsCoronado Middle School

  • Lack of adequate backup on cash receipts
  • Bank deposits cannot be reconciled to cash receipts
  • Expenditures are lacking proper approval – student, Principal, advisor
  • Evidence of receipt of goods is lacking
  • No minutes of Student Council meetings provided
  • Revenue Potentials are not prepared
  • ASB Bookkeeper is also a signer on the account

Coronado High School

  • Lack of adequate backup on cash receipts
  • Bank deposits cannot be reconciled to cash receipts
  • Expenditures are lacking proper approval – student, Principal, advisor
  • Evidence of receipts of goods is lacking
  • Revenue Potentials are not prepared for major fundraisers/events
  • ASB Bookkeeper is also a signer on the account

man in shirt and tie with cooking the books apron(7) Deficiencies in the school site’s attendance record keeping

(8) Discrepancies between attendance register and teacher-signed roster causes ADA (Average Daily Attendance) to be overstated.

This long list of CUSD’s audit problems is shocking and disgraceful.

 

Does Greed Trump Integrity at CUSD?

The last two points directly above are especially troubling.

Does the information in numbers (7) and (8) mean that CUSD reported false numbers of students attending class daily, called ADA or average daily attendance?

boy in hundred dollar bill costumeCUSD receives additional public tax dollars . . .  money, money, money  . . . for every student recorded through ADA numbers.

Would CUSD cheat in order to get more money?

Are the adults at CUSD leading by example? Are they instilling ethics in CUSD students? Is CUSD teaching its students how to live honest lives with integrity

Or has CUSD created a culture of deceit, corruption and dishonor?

Does CUSD teach students how to ditch integrity and fudge the numbers in order to “rake in more money” . . . more of OUR tax dollars than they’re already allotted under the rules?

Is CUSD merely teaching students how to break the rules and “game” the system?

To read the entire audit, click here.

CUSD Can’t be Trusted With MORE of OUR Property Tax Dollars

Do you think CUSD students are getting a “quality education” in ethics and morals?

Do you think CUSD adults lead by example?

cropped-chalkboard21.jpgCUSD demands we vote for a property tax hike upon OURSELVES so they can have MORE of OUR hard-earned money in order to mismanage it through Prop E school bonds.

No thanks.

No on E is the only vote that makes sense.

Vote NO on Prop E on June 3!

 

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