Legislative Joint Auditing-Educational Institutions

The meeting motion to approve this and second all those in favor of the motion say aye. Posed motion carried. Okay see review of reports. In. Mr Speaker turn it over to you. Thank you Mr a good afternoon today we have 20 educational reports for the fiscal year 2021 to review. Of the 20 reports. 4 nights okay of the 20 reports their file reports with findings of 2 of which referred to a prosecuting attorney and one of those was also referred to the bonding board which I'll make note of the first to Spring Hill school district. In July twenty twenty the district hired the sister of a board member spouse as a part time para professional with compensation totaling $10000 for the period July twenty twenty through June thirty twenty twenty one the district subsequently changed the individual's employment status to a full time care professional in April of 2021 and 2 elementary secretary in January of 2022 resulting in increases of 50 850 $200 respectively although meeting minutes indicate the board approved these transactions approval was not obtained from the Arkansas division of elementary and secondary education which is required by Arkansas Code additionally the able 2021 in January twenty twenty two board meeting minutes disclosed that the aforementioned board member was present and participated in the discussion and vote in noncompliance with Arkansas Code and that concludes a finding for Spring Hill school district. Any. The Committee. Motion to file and second all those in favor of the motion say aye. Opposed motion carries. District the next report which was referred to a prosecuting attorney and it was also referred to the bomb board is Springdale school district I won't read the entire finding or the first finding but I just provide a brief summary basically the district had a former employee that was the lead technician all over H. fax systems and he also had a personal business that where he did H. back systems and. Hi he ended up taking about $100000 of H. back inventory to use in his personal business the district did find that he was doing this they brought him in and they questioned him and he admitted to to a portion of the inventory that was missing he was arrested and he is also has a trial date set at the end of this month. So that's the first finding and that was referred to the bomb board the second finding is eligibility determination performed by district management for the tennis program was performed incorrectly for the 10 if program a sample of 60 children was selected to test eligibility controls and compliance and the audit found 7 discrepancies related to the controls for eligibility and that resulted in 3 instances of noncompliance totaling $4700 and that concludes the funding for Springdale school district. Are there any questions the committee. Motion to file. And second all those in favor say aye. Posed motion carried. Restrict the next 3 reports contain findings that were in that were not referred to a PA the first was England school district the district overstated accounts receivable by $520000 in other aggregate funds the financial statements were subsequently corrected by adjusting entry during audit fieldwork that concludes the findings for England school district. The court. Senator you're recognized. The district over state accounts receivable receivable by $520296 seems like an awful and what what happened. Yet so they were and they had a building project that was funded through facilities partnership funding and at the end of the year they had invoices built that were due that they went ahead and booked a receivable for the problem was is a book the receivable in excess of the actual amount of funding that was available so really what they need to do for that $520000 is moved that from a different fund that within the school district. Irritated motion to file. Motion made and seconded all those of favour say aye. Opposed motion carries Mr thank. Forman school district have 1 finding we identified an allowable costs of 1818 $0 that was paid from S. R. funds these costs were the result of the district re classifying food service supplies they were already expense in another federal program that conclusive findings performance school district. Any questions. Okay motion to file a motion to file and second all those in favor of the motion say aye. Opposed motion carried. Thank okay the final report with findings was mineral springs school district the first finding they had 5 under on authorize withdrawals totaling 30 $500 that were made from district bank accounts between July of 2020 in November of 2020 entity personnel discovered the unauthorized withdrawals upon review of the fat the effective bank accounts and the funds were recovered by the bank finding to the district could not document that procedures are followed to select a construction manager for construction of a pre K. pavilion and field house addition as set forth in rules and regulations governing the use of construction management as a project delivery method pursuant to Arkansas Code additionally the district did not have documentation of a construction manager contract and the final funding the district did not comply with bid requirements for self construction renovations on 2 buildings as outlined in Arkansas Code additionally the district was unable to provide documentation that the contractor provided a performance bond at the time of the project for electrical work totaling 40 $2000 as required by code the district obtain a bond after the project was completed and that concludes the findings from mineral springs school district. Makes. Thank you Mr a question on that first finding about $3500 in withdrawals can you expound on that a little bit of I'm concerned to was somebody withdrawing that the furiously or was that that after what was going on with that $3500. So does unauthorized withdraws. On to the police report it was not an employee one was a forged check one was a check that was cashed through Arvest bank and 3 debits were from 3 of them were debits that were actually from a casino and so it was just bad actors in each case I will say that the district what they were doing bank reconciliations they were performing those reckons the silly Haitians timely and that's why they were able to report the issue so quickly to the bank so in other words it wasn't a school employee was like in a dented the theft situations that would be a good character yes okay all right thank you. Motion to follow and second all those in favor say aye. Opposed motion carried. Okay thank on the back we really for the. On your last page I think you'll see a list of. No for a list of school district with no findings there's a it works Central Arkansas. And but anyway review those if you would and then. We're here to a motion to. Motion to. Approve these and second all those in favor say aye. Opposed motion carried. Thank you all that'll. Concludes. All were of. Items thank you all for coming. The. Really appreciate. Being here in. Cooperating. Thank you for coming in this meeting is adjourned.