Legislative Joint Auditing-Educational Institutions

If you don't mind I have a motion from representatives to Smith to accept the minutes all in favor say aye. Okay chairs calls right unanimous the minutes are approved work with me here folks so I think the other thing we're going to do today is. It's going to be tough because you're in seats I'm gonna ask you to identify yourself I got a picture I think I know everybody in the room but if you want to speak the honorable protocol for this room teacher but unlike knowledge to make sure we sign in in the back but normally we ask Mr new to read every single audit and I think for time since these are out there and we've got the four members I think it would be appropriate that I ask is chair does anybody have anything with regard to each one the next one on the list and seeing none we will skip. The reading of the entire report and go directly to the motion so with that we're gonna jump right into the review of reports do you have anything to say first Mr knew before we go. Thank you Mr chair There was. I was just going to get kind of a summary there's a hundred forty nine report's being presented today that include Tyree ads school districts charter school open enrollment charter schools and educational cooperatives so we have quite a few reports as you as you know our June meeting got canceled so all those reports got moved to the September meeting so that's what we have so many most of the reports have no finding the majority of them actually there's a hundred and eleven that have no findings. Other than that we can go as a senator Pitsch said we can go ACT kind of go through each one see if you have any questions on that. With that said in knowing the subjects found in each of these fine or reports I think we'll go ahead and just jump right in again the chair is going to ask for a waiving of the hand saying I want to talk about that one and all pause after reading the title of each one of them will go on okay so we'll begin with. Ashdown school district of little river county report certified June thirtieth does anybody have anything with regard to that one. Seeing none. Okay I've I hear something go ahead Representative love. Thank you Mr chair can can Mister commissioner makes this can you identify if there's any repeat find hi I guess those are the ones that I'm interested in if it's a if it's the general fine and it's not too much money this time but if it's a repeat finding something that they continue to struggle with could you identify those. A yes I sure that said that in my summary as well we only have one report of the hundred forty nine being presented that that have repeat findings okay thank you and we will identify that if if nobody else does will say this is a repeat finding an open it up thank you Mr chair okay would it be acceptable to the committee members if we just identified these and when we got so many of them we say okay that many identified I need a motion to file those that are acceptable for you okay then we will continue on the next one we have a report is a little rock school district of Pulaski County June thirtieth do I have any questions or concerns. Seeing none I'm going to go on to the south Arkansas community college and Representative love a June thirtieth that is a repeat finding. Have any comments or need to discuss questions on that. Going forward then seeing none will go on to Arkadelphia school district of Clark County June thirtieth as a report. Seeing none I'm gonna go to Boston mountain educational cooperative of Washington County June thirtieth. I want to go too fast but I don't see permit productivity going through everyone of them in detail so. cedar ridge school district of independence county. June thirtieth one finding. Seeing none the Cleveland county school district of Cleveland county June thirtieth. Has what we have here to findings. Dermott school district of Chico county June thirtieth with one fan finding. Seeing none ease Poinsett county school district to Poinsett county June thirtieth with two findings. About the members wish they'd read these things a little further so we don't go too fast but I think we're still moving on right. Harrisburg school district of points that county June thirtieth. With one finding. And we'll finish this page off with Lawrence county school district of Lawrence county June thirtieth and they have two findings and I see Representative lane Jean. Three. I'm all got it back up thank god I read in the south are the only the repeat the south Arkansas community college and is is information would fraud Julie obtained was this do they know who the the person or persons that did this. And I see they got them the money recovered. No they haven't this is been referred to the PA a course all these that yes centrifuges going been referred to the PA but we know they do not know the perpetrator of the that obtained at account information so it was an outside source. It may be it could be an inside sources where we just don't know the procedure tourney has added his hands yes okay yes thank you in each case yeah and the college recover those funds and that was a repeat finding for the previous two years and knows those charges was also recovered by a recovered by the college which I'm assuming just probably the credit card. Return the money. You know if you if you could prove it fraudulent they'll do that correct so it's not and not the perpetrator. That is correct that's okay thank you okay and that's fine if you see something that we've approved a removing on we haven't got a motion yet we're gonna batch motion a bunch of the so if you want to go back. You wanna okay at the proper time as soon Representative Smith. Okay we'll move on to marked tree school district of Poinsett county and I'm on page eight some of you fund backwards with one finding. There any comments or questions. Seeing none the Nettleton school district of Craighead county. With one finding. Seeing no waving hands will move on to the pea ridge school district of Benton county. With two findings. No comments I'm going to move on to the southeast Arkansas preparatory high school of Jefferson County June thirtieth with one finding and do I have any comments first okay I see Representative love. There you go I want to go back to the Nettleton school district is a hundred and twelve thousand six hundred and eighty six dollars that was wired to some money from June. Yes that's correct day This of. Fraudulent per Senate fraudulent E. mail thank you you thank any was the vendor they went ahead they asked to re re to wire the money for a bus purchase but it was not the vendor the ages had active vendors the mail. And Senate email three that. Again in the prosecuting attorney's hands yes is that prosecutors hands and as you notice there was a lawsuit filed by the bus company and then the school actually. But counter claimed as well for the sign so that was why there was a settlement agreement because neither party. Was uncertain about their defense inclined so that's the reason that have a reached a settlement agreement it's basically half of the purchase half of the price of the bus purchase. Thank. Alright thank you. All right are there any questions I want to ask again about the southeast Arkansas preparatory high school we have Cindy Smith with eighty here I believe to answer any questions if there's questions about that charter school we want real certain whether there would be are not and we knew that she could answer those solemn make sure and pause here and thank her for coming to an eight o'clock meeting. Well good. I will add excuse me I will I add that that charter school has closed as of July first it's charter has been transferred two with the friendship education foundation. So there is a need that charter was transferred and they have another campus they they run the fact friendship aspire academies in little rock in pine bluff so they'll have an additional campus as well one that. Okay we're gonna move on there's twenty one pages of these I'm gonna get halfway through we're gonna get to page eleven and ask for a motion for half of them and then we'll do a second motion to cover the other half so moving on to page ten. still is the southeast Arkansas prep and that comes over to page eleven as well you find all of those findings. we will last for does anybody have comments on Star City school district of linking county June thirtieth. With one to three findings. Okay seeing none assuming you've had pre meeting readings of those findings and we've presented them and ask a few questions along the way the chair would entertain a motion to file the reports that go through the Star City school district halfway down page twelve from the beginning of the list do I have said motion. Representative Smith. Motion to file do I have a second row presented Stu Smith all in favor of filing those motions through page twelve halfway through Star City please say aye. Motion is approved unanimously those reports are filed thank you and we're gonna keep plowing through this list of that's alright with everybody same rules apply let me know if you need to ask questions or more detail on any of them we will go with White County central school district halfway through page twelve with one finding. Seeing no waving hands let's go on now that would be I should have probably had that last one has a prosecuting attorney now that I see where the line was just was two and a half that was the last report that is in the prosecuting attorney's hands were now going into reports with findings so we will start with Arkansas arts academy of Benton county with one finding. Moving forward will go to bauxite school district of so lien county with one finding. The base school district of Kate Craighead county. One finding. The Berryville school district of Carroll County with one finding. Moving forward central city light house charter school of Pulaski County. With one finding. I'm going to butcher the name but dear mount to the school district of Newton county with two findings. The DES ARC school district of prairie county with one finding. The exalt academy of southwest little rock of Pulaski County. With one finding. And I think I'll let Mr newt make a comment about that in the lease academy if you would please. Make sure that. One exulted over me yeah. that was you'll see several Three or four of those schools that exceeded they didn't have enough collateral citation to make sure they're funds over two hundred fifty thousand dollars was covered and basically said most of these just didn't not when they set up their accounts at the bank did not have the bank identified as a public account so they it the collateral is ation wasn't available to him at that time so now they all they all set up the ones that are applicable this identifies a public accounts of the collateral section has now become effective for all those schools basically it was a covered situation we have several of those that's why I want him to point that out you'll see that through some of these descriptions of moving on future school of Fort Smith the Sebastian county with the same finding. Izard county consolidated school district with one finding. The Jacksonville light house charter school of Pulaski County with one finding. Still no comments police academy of Pulaski County with one finding. The little rock preparatory academy of Pulaski County with one finding. The Mel born school district of Izard county with one finding up to finding skews me apologize when for. The Nashville school district of Howard County with one finding. The north little rock school district of Pulaski County. With one finding. The northeast Arkansas educational service cooperative of Lawrence county with one finding. The pine bluff light house charter school of Jefferson County with one finding. Scholar made achievement place of Pulaski County with one finding. The spring Dale school district of Washington County with one finding. The viola school district of Fulton County with two findings. And I believe what's ask for a motion to to wrap that section up first of all all I ask is anybody found any questions or comments as we went through those imposed because I'm willing to go backwards I guess up until we have the motion halfway through are there any other comments. I want to specially thank you Mr nude in his staff because there is a lot of work that we just went through but they have full documentation of who what when where and why on these deals so thank them for their efforts but are there any other questions or comments before the chair seeks a motion. Seeing none the chair would entertain a motion to file these reports as read. Representative Smith do I have a second representatives to Smith. all in favor of accepting these motions are accepting this motion to file these reports please say aye. Hi motion passes unanimously and thank you everybody for that portion of this meeting let's go we need to do a motion on the audit reports with no findings correct this so we have if you look on page twenty two and twenty three. And twenty four Mr do you know how many we have there there's a hundred and eleven hundred and eleven of them which is pretty exciting because we have how many that's about a little over its almost seventy percent with no findings how many do we have total hundred seventy or a hundred feet how many total a total school districts there's a total of with education corporate is an charter schools we have about two hundred and To have any. Two seventy eight so we have a hundred eleven of them had completely clean audits as we spoke yesterday in reviewing and prepping for this meeting I think the school district's alone though we thought was about seventy percent had no findings we love for that to be in the mid to upper ninety percent of not a hundred percent but still that's an improvement from the percentages we've been seeing so. you want to take a minute to look to those audit reports with no findings see if your schools there make sure you tell your superintendents that if their graduations if they are. And then I'll ask for a motion. Okay let's move on a the chair would entertain a motion to file those audit reports with no findings please. Representatives to has the motion I need a second. Seeing a motion and a second all in favor say aye. So we will have a motion approved chair CZ anonymous audit report with no findings to follow all of those reports. All we one of the. Business. The chair would ask do we have any new business but to come before the committee. Seeing none I thank you for your efforts this morning please make sure when we have our wonderful staff send you out all of these reports read them browse them get to know them before you come to the meeting because sometimes we will do this when we have a very small. Group all right I would entertain a motion to adjourn the committee. Saying Representative Smith waving at me I thank. Okay and Representative Smith waving a second meeting is adjourned thank you for your efforts. We didn't make eight minutes but.