STATE OF DELAWARE OFFICE OF AUDITOR OF ACCOUNTS R. THOMAS WAGNER, JR., CFE, CGFM, CICA, ‘AupITOR OF ACCOUNTS: "302-739-5055, R.THOMAS. WAGNER@STATE.DE.US June 21, 2016 Mr. Kristopher Knight Director Division of Accounting 820 Silver Lake Boulevard, Suite 200 Dover, DE 19904 Dear Mr, f~ As you may know, my office reviewed the use of petty cash accounts at various charter schools earlier this year, The State’s petty cash policy, as set forth in the State of Delaware's Budget and Accounting Manual (BAM),' states that your office must approve an organization’s establishment of a petty cash account via an approval letter. This section of the BAM also contains additional requirements for the Division of Accounting related to petty cash accounts, including setting up vendors for the petty cash accounts At the onset of our engagement, we requested a list of charter schools with approved petty cash accounts; however, you stated that your office did not maintain this information. In addition, officials for all five charter schools we reviewed (The Charter School of Wilmington, Delaware Academy of Public Safety and Security, Delaware Military Academy, Odyssey Charter School, and Sussex Academy of Arts and Sciences) stated they were not aware of the regulations surrounding the approval process for opening a petty cash account and were unable to produce any related documentation. ‘We wanted to make you aware of this issue for your consideration. We also have concerns that the BAM only requires this level of oversight for petty cash accounts and not for other external bank accounts for additional purposes, "BAM, Section 7.12, v4.26 401 FEDERAL STREET * TOWNSEND BUILDING ¢ SUITE ONE * DOVER, DE 19901 MAIN OFFICE: 302-739-4241 FRAUD HOTLINE: 1-800-55-FRAUD Visit OUR WEBSITETO VIEW, DOWNLOAD. OR PRINT AUDIT REPORTS AND OTHER INFORMATION, IHITP:/ / AUDITOR. DELAWARE.GOVDirector Knight Page 2 June 21, 2016 Please feel free to contact me at (302) 739-5055 with any further questions you may have. Sincerely, fas Wagner, Jr, Ci State Auditor