STATE OF DELAWARE
OFFICE OF AUDITOR OF ACCOUNTS:
R. THOMAS WAGNER, JR., CFE, CGFM, CICA
"AubiTor oF ACCOUNTS
302.739.5055
THOMAS. WAGNER@STATE.DE.US
June 21,2016
‘The Honorable Ken Simpler
State Treasurer
Office of the State Treasurer
820 Silver Lake Boulevard, Suite 100
Dover, DE 19904
Dear Treasury fafa.
‘As you mayknow, 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 once the Division of Accounting approves the establishment of an organization's
petty cash account, “...the Office of the State Treasurer (OST) must approve the opening of the bank
>
account.
At the onset of our engagement, your office provided a list of three charter schools that obtained the
appropriate approval to open an external bank account. However, none of these charter schools were the
five we selected for review. Officials for all five charter schools we reviewed (The Charter Schoo! of
Wilmington, Delaware Academy of Public Safety and Security, Delaware Military Academy, Odyssey
Charter School, and Sussex Academy of Arts and Seiences) stated they were not aware of the
regulations surrounding the approval process for opening a petty cash account.
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 7.12.1, v4.26
401 FEDERAL STREET » TOWNSEND BUILDING SUITE ONE * DOVER, DE 19901
MAIN OFFICE: 302.739-4241 FRAUD HOTLINE: 1-800-55-FRAUD
\Visrt OUR WEBSITE TO VIEW, DOWNLOAD, OR PRINT AUDIT REPORTS AND OTHER INFORMATION
HITP:// AUDITOR. DELAWARE.GOY‘Treasurer Simpler
Page 2
June 21, 2016
Please feel free to contact me at (302) 739-5055 with any further questions you may have.
Sincerely,
Thomas Wagner, Jr, CGFM, CICA, CFE
State Auditor
ce: Ms. Nohora Gonzalez, Deputy State Treasurer