DOE Audit Report 2006

DEPARTMENT OF EDUCATION INCLUDING DIRECT AID TO PUBLIC EDUCATIONANDVIRGINIA SCHOOLS FOR DEAF AND BLINDREPORT ON AUDITFOR THE YEAR ENDEDJUNE 30, 2006AUDIT SUMMARY Our audit included the Department of Education, Direct Aid to Public Education, the Virginia School for the Deaf and Blind in Staunton, and the Virginia School for the Deaf, Blind, and Multi-Disabled in Hampton. Our audit for the year ended June 30, 2006, found: • proper recording and reporting of transactions, in all material respects, in the Commonwealth Accounting and Reporting System; • recommendations for improving internal controls and its operations, but we do not consider matters involving internal control and its operation to be material weaknesses; and • no instances of noncompliance or other matters that required reporting. Enhance Documentation and Internal Controls over SOQ Model The Department of Education (Department) has developed over time a complex Standards of Quality (SOQ) model application and the Direct Aid Budget Worksheets (DABS) to budget and prepare the initial distribution of over $6 billion of financial assistance to localities. The DABS uses a series of Excel worksheets to extract and calculate the funding. The Budget Section maintains the system, develops both user and system documentation, and documents changes to the system. All of these critical functions are the responsibility of the Budget Section. While the Budget Section has ...