The report on the audit of the financial statements of the Public School System in accordance with OMB Circular A-133 for the years ended September 30, 2009 and 2008 was recently released. The audit was conducted by J. Scott Magliari and Company.

The audit disclosed material weaknesses in internal controls as follows:

1. Finding no. 09-04, Use of Preauthorized Trip Report - Most of the trip reports examined did not provide detailed description of what was obtained during the trip and how these could help improve PSS.
2. Finding no. 09-05, Use of Organization Credit Card - PSS credit cards were used on several trips to pay for accomodations and registrations of the traveler in violation of PSS policy on the use of PSS credit card.
3. Finding no. 09-06, Compliance with Appropriations Budget - The Board of Education increased the salary of the PSS Commissioner, Legal Counsel, and Board Secretary in violation of the 2009 Appropriations Act which froze all government salaries except for classroom teachers. Also PSS used funds appropriated for PSS operations to renovate the office of the Board of Education amounting to $9,590 and purchased controlled assets though the Appropriations Act expressly prohibited such expenditures.
4. Finding no. 09-09, Sole Source Contracts - Several sole source contracts were awarded without Cost and Price analysis.

The report listed other violations in PSS's established travel and employment contract policies, and questioned costs on Federally-funded programs.

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