Determine whether Rochester Academy Charter School (School) officials ensured credit card charges were properly approved, supported and for School purposes.
School officials did not ensure credit card charges were properly approved, adequately supported and for School purposes. Officials did not perform an effective and timely review of credit card charges. As a result:
- School officials approved and paid certain credit card charges without knowing what was purchased or whether the charges were for appropriate School purposes.
- 35 percent (169 totaling $68,523) of the tested credit card charges did not have a receipt or did not have an itemized receipt and 48 percent (232 totaling $91,673) had an itemized receipt but no documented School purpose.
- Subsequently, officials obtained and provided some of the missing receipts; however, 9 percent of the charges were still missing receipts.
- Officials did not establish adequate written credit card policies and procedures or ensure compliance with the established policy requirements.
- Update the financial control policies or adopt a written credit card policy.
- Ensure all credit card charges are adequately supported before payments are made.
School officials generally agreed with our findings and indicated they will initiate corrective action. Appendix B includes a comment on the School’s response.