Special audit report findings from Red Oak FFA Chapter

KING, REINSCH, PROSSER & CO., L.L.P. today released a report on a special investigation of the Future Farmers of America (FFA) program within the Red Oak Community School District (the District) for the period July 1, 2019 through April 30, 2021. The special investigation was conducted as a result of concerns regarding financial transactions related to FFA events that were not properly collected and deposited or expended in accordance with District policies by the District's former FFA Sponsor. 

KING, REINSCH, PROSSER & CO., L.L.P. reported the special investigation identified a total of $6,264 of undeposited collections during the period examined, comprised of: $2,439 of undeposited collections related to the FFA Annual Toy Sale fundraisers; $2,700 of undeposited collections related to District FFA proceeds that were deposited in non-District accounts; and $1,125 of cash provided to the former FFA Sponsor from non-District FFA organizations that was not deposited with the District. KING, REINSCH, PROSSER & CO., L.L.P. also reported that analysis of other fundraising activity suggests an additional amount of undeposited collections exists, but it was not possible to accurately quantify that amount due to insufficient records related to those events. 

In addition, KING, REINSCH, PROSSER & CO., L.L.P. reported the special investigation identified $146 of improper disbursements related to FFA events during the period examined. KING, REINSCH, PROSSER & CO., L.L.P. also reported that analysis of other FFA event activity suggests an additional amount of improper disbursements exists, but it was not possible to accurately quantify that amount due to insufficient records related to those events. 

The report includes recommendations to strengthen the District's internal controls, compliance with District policies regarding cash receipts and fundraising, and improve overall operations, such as ensuring sufficient supporting documentation is maintained for all fundraising activities. 

Copies of this report have been filed with the Iowa Auditor of State and the Montgomery County Attorney's Office. A copy of the report is available for review in the Office of Auditor of State and on the Auditor of State's web site at https://www.auditor.iowa.gov/reports/audit-reports/. 

The Red Oak Express

2012 Commerce Drive
P.O. Box 377
Red Oak, IA 51566
Phone: 712-623-2566 Fax: 712-623-2568

Comment Here