Legislative Joint Auditing-Educational Institutions

Is in the I don't number one item be adoption of minutes of the April 7. 2022 meeting and motions made in second all those in favor say aye. Opposed motion carried. Looks like we've got a pretty short agenda. All turned the report over to Mr faint. Thank you Mr chair and good afternoon today we have 74 educational reports for the fiscal year 2021 to review. Of the 74 reports there are 6 with findings 2 of those referred to a prosecuting attorney and one that was certified to the bomb board and we will begin with the report that was certified to the bomb board which was one finding for little rock school district. As previously disclosed in the audit reports for the 3 fiscal years ended June thirty twenty twenty management stated that a law enforcement agency was investigating certain financial transactions of the district and the case is pending submission to a grand jury the district conducted an internal review and discovered $230000 and on authorized charges for purchases made using 2 P. cards on February ninth twenty twenty two Karen James director of childhood education in elementary literacy pled guilty in federal court to the unauthorized use of district issued P. cards assigned to her and that concludes a finding for little rock school district. We need to file. Yes but I'm sorry I just wondered was set for personal use. Yes it was that to P. cards that were issued to hire essentially she she started using those for personal use back in 2014 it ran all the way to 2018 she was falsifying invoices and receipts and turning them in so that they looked legitimate the school district did have procedures in place and they were reviewing those invoices and receipts but she was fabricating them and finally they they realize what was happening in and discovered that misuse all right thank you so much. Make. For the many reimbursement back to the district from this. So that the case is still awaiting sentencing however they did order her to pay restitution of $230635.86. Any further questions. You're you're recognized. Thank you Mr chairman. Was there any any sort of limit on these purchasing cards I mean 230000 even spread over 3 years just seems like a really large amount of money to be putting on. Purchasing card. There were limits on both cards and I would point out that it was over a 4 year period August of 2014 to August of 2018 is when it took place but there were credit limits on I do not know what that credit limit was I could find out but I I don't have it on hand with me. Any other questions. Entertain a motion to file. Motion the second all those in favor say aye. Oppose motion carried. Thank you the next term reports were both referred to prosecuting attorney the first is Bergman school district which had one finding the district paid an employee $1500 for vehicle without obtaining a board resolution as required by Arkansas Code that concludes the findings for Bergman. Questions. Motion to file. Second. Motion filed second all those in favor say aye. PO's motion care. Thank the next report which was also referred to the prosecuting attorney was for Pulaski County special school district which had one finding the Maumelle middle school district secretary received a donation of $700 in cash that was not subsequently deposited into the district's bank account the kids the custodian of funds could not be identified due to multiple employees having access to the location where the funds were kept the district reported the incident to the Arkansas state police and requested an investigation that concludes findings for Pulaski County special school district. She Gilmore. So I see on here where it says the custodian funds cannot be identified due to multiemployer ease then the response states the person responsible for missing funds no longer collects. So did they identify the person. So the Secretary collected the cash and. And what she says is that she put the funds into a locked filing cabinet. Problem is there were multiple people who had access to that filing cabinet and so she stated that when she went back to get the money that it was gone. Okay. And I would note that that was they did get Arkansas state police involved on that. Thank you. Other questions. If not much of a motion filed in second. All those in favor say aye. Apposed motion cared. Restraint. There are 3 more school districts with findings staff recommended the committee take a second to look through those and if there are any questions I can try to answer those questions. Any questions. Mr make. Just a question on that last one the district missed class $571000 in revenues and expenditures of the federal grant program the general fund. Just seeking reassurance that nothing was stolen or misplaced they would have just accounting errors on that one basically yes that is correct okay not. Mr Gilmour on the second one there Dermott special school district so were they not keeping asset list or just wasn't up to date. So. The items that were missing were dated from 2005 that's when they required 2005 to 2012 it appears that they just were not keeping that list up to date okay and what were what were those items there is a copier 2 cameras and a scanner in the total cost of all those items combined was about $8400. Okay. Any further questions that they don't expect any. Sort of criminal action with the. They do not. Okay. If there's not any further questions of entertain a motion to. File all 3 of these at once. Got a motion. And the second all those in favor of the motion say aye. Oppose motion carried. Good luck we have a list of reports with no findings. If. You'd like to look those over or all present at the proper time all your data motion to. To file those all together. The motion and second. The file the lease of all those in favor of the motion say aye. Oppose motion carried. Of I thank that concludes concludes our business so I appreciate everyone the showing up. And we are adjourned. Thank.