Audit underscores discrepancies in Hillside athletic booster club’s operations
August 1, 2003 FOR IMMEDIATE RELEASE CONTACT: Hank Hurd, Associate Superintendent, Administrative Services, 560-2504 DURHAM--An internal review of the concession operations of the Hillside High School Athletic Boosters Club has concluded that the school system acted appropriately in assuming control of concession sales from the club after club leaders failed to provide appropriate documentation or follow proper accounting procedures. The club’s fiscal accountability was brought into question by principal Eunice Sanders last year. That fall Dixon Odom, an independent accounting firm, conducted an analysis of expenditures and revenues for athletic concessions at Hillside. The school administration then relieved the Athletic Boosters of responsibility for concessions and instituted financial controls. The system’s subsequent internal review also included a meeting with the president, treasurer and concessions chair of the Athletic Boosters. Among the school officials’ concerns, along with Boosters members’ explanations: School officials were concerned that Boosters did not appear to make deposits after athletic events where concessions may have been sold. The Boosters noted that for some events in question there were no concession sales because of conflicts or because attendance at the events was expected to be low. There were times when deposits were delayed in the process of transferring money from the concessions chair to the treasurer. It appears, however, that when the club’s treasurer received funds, timely and accurate deposits were made. The Athletic Boosters also noted that they would group proceeds from several events if the proceeds were small. School officials were concerned over receipts for purchase of concession items that included personal use items such as clothing, cigarettes and alcoholic beverages, with no record of reimbursement. The Boosters’ concessions chair explained that he made personal purchases when buying concession supplies, but reimbursed the club by adding "cash to the till" for those purchases. Because of the lack of documentation, it is impossible for the DPS administration to verify that reimbursement took place or to identify the amount of personal expenditures for which reimbursement was required. There was a failure to track funds withdrawn for the cash box used during concession sales. There are no records that differentiate the redeposit of the cash box money from deposit of concession sales proceeds. Total revenue generated by the club appeared low. Information provided by the Boosters shows that the club contributed $1,880 to the school during fiscal year 2001-2002, and $500 during the 2002-2003 fiscal year. The Boosters officers noted that significant theft of concession products and other merchandise from poorly secured school facilities affected their bottom line and diminished the amount available for the school. Theft apparently contributed to the lost revenue stream. However, there is an insufficient record of merchandise sales and inventory and concession sales and inventory to document or quantify the effect of theft. "Durham Public Schools is deeply committed to financial accountability for both our schools and their support groups," said Superintendent Ann T. Denlinger. "We have now established standards for all such groups to follow in all of our schools. Improper accounting practices cannot and will not be tolerated in Durham Public Schools. DPS and associated groups will demonstrate to the public that we adhere to accepted accounting practices. We enthusiastically thank the many support groups who provide additional resources to the students." ###
