06-15-2010 Regular School Board Meeting
Agenda Item #49


Title
Palm Bay Academy Charter School Follow-Up Report Conducted by RSM McGladrey

Discussion

RSM McGladrey conducted a follow-up at Palm Bay Academy Charter School to two previously issued reports:  the Internal Audit Report dated February 2008 and the External Audit Report as of June 30, 2009 issued and dated September 28, 2009.  RSM McGladrey performed the follow-up procedures in April and May 2010 and requested a detailed response regarding their findings from the charter school principal.  No response was received as of May 19, 2010, the date of the (attached) follow-up report

The outcome of RSM McGladrey's follow-up report includes:

  • RSM McGladrey Internal Audit - February 2008
    • Total Corrective Actions - 10
    • Total Closed Verified - 3
    • Total Open Not Verified - 7
  • External Audit - June 30, 2009
    • Total Corrective Actions - 6
    • Total Closed Verified - 0
    • Total Open Not Verified - 6

RSM McGladrey rated eleven of the thirteen "open not verified" items RED, which means that they should be considered to be of immediate concern and could cause significant operational issues if not addressed.  Two "open not verified" items were rated YELLOW, which may cause operational issues but do not require immediate attention. 

Berman Hopkins Wright and Laham CPAs & Associates served as the external auditor for the June 30 2008 and 2009 fiscal years.  The most recent external audit report was issued September 28, 2009 without a response from Palm Bay Academy Charter School regarding the material weakness, significant deficiencies and management letter comments.

Pursuant to 1002.33(8)(a)(2), Florida Statutes, the sponsor may terminate the charter for failure to meet generally accepted standards of fiscal management.  The sponsor must notify the charter school governing body in writing at least 90 days prior to taking the proposed action.



Recommendation
Determine Board action regarding the results of the Palm Bay Academy Follow-Up Financial Report (dated May 19, 2010 )conducted by RSM McGladrey.

Meeting Date(s)
Information - 6/15/2010
Consent after Information7/20/2010

Authority for Action
Florida Statutes 1002.33

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program

Contact

Vicki L. Mace, Director School Choice, 633-1000, Ext. 395




Attachment:  Follow-up Palm Bay Academy School Final Report.pdf