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Oley Valley School District Berks County, Pennsylvania ______

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Oley Valley School District Berks County, Pennsylvania ______ PERFORMANCE AUDIT ____________ Oley Valley School District Berks County, Pennsylvania ____________ January 2016 Dr. Tracy S. Shank, Superintendent Mr. Stephen S. Burns, Board President Oley Valley School District Oley Valley School District 17 Jefferson Street 17 Jefferson Street Oley, Pennsylvania 19547 Oley, Pennsylvania 19547 Dear Dr. Shank and Mr. Burns: We have conducted a performance audit of the Oley Valley School District (District) for the period July 1, 2012 through June 30, 2015. We evaluated the District’s performance in the following areas: · Governance · Contracting · Administrator Contract Buy-out · School Safety · Bus Driver Requirements The audit was conducted pursuant to Section 403 of The Fiscal Code, 72 P.S. § 403, and in accordance with the Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. Our audit found that the District performed adequately in the areas listed above. We appreciate the District’s cooperation during the course of the audit. Sincerely, Eugene A. DePasquale January 28, 2016 Auditor General cc: OLEY VALLEY SCHOOL DISTRICT Board of School Directors Table of Contents Page Background Information ............................................................................................................. 1 Findings and Observations .......................................................................................................... 4 Status of Prior Audit Findings and Observations ....................................................................... 5 Appendix: Audit Scope, Objectives, and Methodology ............................................................. 8 Distribution List .......................................................................................................................... 11 Background Informationi School Characteristics of community and parent involvement. The 2014-15 School Yearii Oley Valley School District also commits to County Berks embracing diversity and individuality within the Total Square context of mutual respect and understanding to 65 Miles empower our students to become responsible, Resident contributing citizens in a global society.” 11,715 Populationiii Financial Information Number of School 3 Buildings Select Expenditures for Total Teachers 136 2013-14 School Year Total Full or 1% 1% Part-Time Support 96 Regular Charter Special Charter Staff School Tuition School Tuition Total $355,030 $288,541 14 Administrators Total Enrollment for Most Recent 1,705 98% School Year All Other Operating Intermediate Unit Expenses 14 $27,667,231 Number District Vo-Tech Berks Career & School Technology Center Mission Statement “Enter to Learn…Leave to Serve” Revenue by Source for 2013-14 School Year The Oley Valley School District commits to 1% 0% providing a learning environment that Federal Other integrates its heritage and community while $356,632 $0 developing lifelong learners who are prepared for an ever-changing world. The district 30% commits to the characteristics of 21st Century State High Performing Educational Systems which $8,659,092 69% Local include a clear and shared focus; high standards $19,817,370 and expectations; effective district leadership at all levels; high levels of collaboration and communication; 21st Century Curriculum, Instruction, and Assessment Aligned with 21st Century Standards; frequent monitoring and evaluation of teaching and learning; focused professional development; safe, supportive, and nurturing learning environment; and high levels Oley Valley School District Performance Audit 1 District’s 2012-13 SPP Scorevii Dollars Per Student 2013-14 School Year A B C D F $16,523 $16,198 90-100 80-89.9 70-79.9 60-69.9 <60 74.2 Total Revenues Total Expenditures Academic Information Percentage of District Students Who Scored "Proficient" or "Advanced" on 2011-12 and 2012-13 PSSAiv v 100 86.6 78 81 83 90 80 73 70 74 80 70 60 50 40 30 20 10 0 Math Math Reading Reading 2011-12 2012-13 2011-12 2012-13 District State Benchmark vi iv v vi Oley Valley School District Performance Audit 2 Individual Building SPP and PSSA Scoresviii 2012-13 School Year PSSA % Federal PSSA % PSSA % School PSSA % Title I School Statewide Proficient Statewide Designation Proficient Benchmark and Benchmark (Reward, and of 73% Advanced of 70% Priority, SPP Advanced Above or in Above or Focus, No School Building Score in Math Below Reading Below Designation)ix Oley Valley 67.5 74 1 69 1 No Designation Elementary Oley Valley Middle 80.8 90 17 79 9 N/A Oley Valley High 69 66 7 75 5 N/A Oley Valley School District Performance Audit 3 Findings and Observations or the audited period, our audit of the District resulted in no findings or observations. F Oley Valley School District Performance Audit 4 Status of Prior Audit Findings and Observations ur prior audit of the District released on October 30, 2013, resulted in two findings and one O observation. As part of our current audit, we determined the status of corrective action taken by the District to implement our prior audit recommendations. We reviewed the District’s written response provided to the Pennsylvania Department of Education (PDE), interviewed District personnel, and performed audit procedures as detailed in each status section below. Auditor General Performance Audit Report Released in October 30, 2013 Prior Finding No. 1: Lack of Internal Controls Resulted in Membership Reporting Errors and a Reduction in the District’s State Education Reimbursement Prior Finding Summary: Our audit of the District’s 2009-10 school year pupil membership reports found data errors caused by a lack of proper internal controls. District personnel inaccurately reported the District’s membership for children placed in private homes (foster children). The District failed to catch this error because personnel did not reconcile preliminary membership reports from PDE with the data in its Student Information System (SIS). In addition, District personnel misunderstood the Pennsylvania Information Management System (PIMS) guidelines for reporting non-resident students including foster children. These errors resulted in a $29,290 reduction in the District’s state reimbursement for non-resident students. Prior Recommendations: We recommended that the District should: 1. Review subsequent year’s reports and, if errors are found, submit revised reports to PDE. 2. Request additional training from PDE to ensure personnel clearly understands the membership reporting guidelines and instructions. 3. Maintain evidence of manual compensating controls and work with the outside vendor to better understand and navigate the vendor system. 4. Reconcile manual records with the reports generated by the District’s SIS. Oley Valley School District Performance Audit 5 5. Reconcile the District’s PIMS reports with the reports generated by the District’s SIS. 6. Reconcile preliminary membership reports from PDE with the data in the District’s SIS, prior to PDE issuing the Final Summary of Child Accounting Membership Report. 7. Establish policies and procedures to ensure that the District’s membership data would be reported correctly if there was a sudden change in personnel or outside vendor. 8. Limit access to PIMS and use individual passwords, rather than group passwords. We also recommended that PDE should: 9. Revise all reports that have been incorrectly reported and adjust the District’s reimbursements affected by the error. Current Status: During our current audit, we found that the District did implement our prior recommendations. As of October 29, 2015, PDE has not resolved the $29,290 underpayment. Therefore, we again recommend PDE adjust the District’s subsidy to resolve the outstanding underpayment of $29,290. Prior Finding No. 2: District Paid Its Former Assistant Superintendent $30,400 in Benefits That Were Not Contractually Required Prior Finding Summary: We reviewed the retirement package paid by the District to its former Assistant Superintendent, who retired effective August 27, 2010. We found that the District paid the former Assistant Superintendent for unused vacation days at a per diem rate, instead of converting the days to sick days, paid at a lower daily rate, as required by her Contract for Employment (Contract). In addition, the District also awarded her a benefit waiver for the 2009-10 school year and part of the 2010-11 school year worth $2,800. However, there were no provisions in the former Assistant Superintendent’s Contract that made her eligible to receive this benefit. Furthermore, the auditors found no evidence that either of these additional benefits were approved by the District’s Board of School Directors (Board) at an open meeting. Oley Valley School District Performance Audit 6 Prior Recommendations: We recommended that the District should: 1. Comply with the requirements of the Public School Code (PSC). 2. Ensure that all personnel actions, including hiring, promotions, transfers, pay raises, and salary setting are voted on and approved in a public board meeting. 3. Ensure that all personnel transactions are appropriately recorded in the official school board meeting minutes. Current Status: During our current audit, we found that the District did implement
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