Accept the February 2005 Transportation FTE Audit prepared by the District Auditing Office.

The District Auditing Office had conducted a Transportation FTE Automated Process Review that was presented to the Board on February 1, 2005. This Phase Two report reflects the results post-implementation of that automated process for the February 2005 FTE funding period.

In our opinion, the Transportation Department continues to make improvements that overall result in more accurate FTE reporting. Improvements in timeliness, accountability, organization of support documentation, and management oversight continue to be noteworthy.

Our audit indicates a potential funding decrease of $42,000, representing a .2% potential decrease in the $17.7 million projected FTE Transportation allocation for this February 2005 Survey. This demonstrates increased FTE accuracy when compared to the 3% potential funding decrease resulting from the 2002-03 Auditor General’s review of FTE Transportation records.

The audit consisted of three major areas of focus - Bus Reports, Transportation Membership Categories, and Exceptional Student Education (ESE) Transportation Documentation. ESE Transportation documentation remains in need of improvement - a difficult task as it crosses departmental boundaries and will need a concerted team effort of Area personnel, school level ESE personnel and Transportation personnel. Recommendations to accomplish improvement are detailed in Section II of our report. The District Auditing Office will issue another report for the October 2005 FTE.

To attest to the fiscal stewardship of public funds.

Improvements in the processing of Transportation FTE can increase funding to the District. The audit was budgeted as part of the District Auditing Office's General Fund personnel budget.

02/28/06