Report 2014-135R Recommendation 5 Responses
Report 2014-135R: Magnolia Science Academies: Although the Financial Condition of These Charter Schools Has Improved, Their Financial Controls Still Need to Be Strengthened (Release Date: May 2015)
Recommendation #5 To: Magnolia Educational and Research Foundation
To strengthen its controls over purchases that principals make at the academies, the Foundation should update its accounting manual to require academy principals to obtain written authorization before processing purchases on their debit cards that are higher than established thresholds. The Foundation should also revise its accounting manual to prohibit the use of debit cards for travel except in the case of a documented emergency.
6-Month Agency Response
As of June 30, 2015, the organization has discontinued the use of debit cards and has assigned credit cards to all school principals and key employees. The new credit cards are the responsibility of the cardholders, and the expenditures are reimbursed in accordance with the policies and procedures manual.
The new policiy "CSH111 COMPANY-ISSUED CREDIT CARDS" has been board approved and is currently in effect for the organization.
- Completion Date: June 2015
- Response Date: November 2015
California State Auditor's Assessment of 6-Month Status: Fully Implemented
60-Day Agency Response
As of June 30, 2015, the organization has discontinued the use of debit cards and has assigned credit cards to all school principals and key employees. The new credit cards are the responsibility of the cardholders, and the expenditures are reimbursed in accordance with the policies and procedures manual.
The new policiy "CSH111 COMPANY-ISSUED CREDIT CARDS" has been board approved and is currently in effect for the organization.
- Completion Date: June 2015
- Response Date: July 2015
California State Auditor's Assessment of 60-Day Status: Pending
Although it claims that it has fully implemented this recommendation through a new credit card policy, the Foundation--despite our requests--has not provided us with the new policy to substantiate its claim.
- Auditee did not substantiate its claim of full implementation
All Recommendations in 2014-135R
Agency responses received are posted verbatim.