Legislative Joint Auditing-Educational Institutions

Twelve educational reports for the fiscal year twenty twenty to review of the trove reports there were eight with findings and two were for to the prosecuting attorney as mentioned by the chair. The first is buffalo island central school district the district paid a little over eleven thousand dollars for supplies to a company in which to employees had financial interests without obtaining approval from the board or the desi as required by Arkansas Code in addition the district paid six hundred seventy five dollars to an employee for the purchase of a piano without board approval and that concludes the findings for buffalo island central school district. Committee give you some context as school employees each year we have to fill out these forms that talk about any financial interest we have in businesses it's my understanding that buffalo island had done this for the year prior they filled out the proper reports with daisy and their treasure retired and then the new person who is responsible for taking these reports did not do so but this is an ongoing contract that they had and that's what the finding is that they had not submitted the paperwork that they previously submitted disposed to it every year not just once and be done so Mr bank any follow up on that. No Sir that's correct okay any questions from the committee. Any questions. And do I have a motion to file this report Senate Gilmore makes motion senator Smith seconds all in favor say aye. All opposed Is haven't. Go ahead Mr thank the next report that was referred to the applicable prosecuting attorney was Jasper school district in July and August twenty nineteen four hundred sixty three fraudulent charges totaling approximately fourteen thousand dollars were made to a district purchasing card but the district treasurer and superintendent we're aware of this breach however the district paid the entire balance and subsequently disputed the charges in October in December of twenty nineteen the district was credited one thousand seven hundred ninety dollars however the district did not follow up on the remaining improper charges until ale a staff inquired about the issue during the audit engagement. As of a report date the district had not been reimbursed for fraudulent charges totaling approximately twelve thousand dollars and according to district personnel the financial institution that issued the P. card is reviewing the outstanding disputed charges one update to that finding is that mass subsequent to our audit the district let us know that they have received restitution for the for twelve thousand one hundred eighty seven thousand dollars that was outstanding. Some committee to give you some context just like it would help with any of our personal debit cards or credit cards this card was breached in a foreign country these charges were made by foreign entity and so of course then the bank is responsible then for restitution and that's what the school district apparently did they followed up with their bank and to get full restitution for this amount. Any questions from the committee. Thank you I have a motion to file this report. Senate representative can see makes a motion Is there a second. Senator more seconds all in favor this motion. Motion carries all right then we'll move on to our reports with findings Committee as I mentioned these are all new findings there's not any repeat findings we can match them if you want to or I can ask Mister fan to go through them individually but if you want to take some time just a minute to review any of these and now allow any questions that you need to ask. Are there any questions from the committee. Mainly most of these reports with findings as you see or either clerical errors or a form that was not filled out in time or you know and that was required and was then handled subsequently so is there any questions as far as these reports go. And if not could I entertain a motion that we filed these reports as a batch. Representative Smith makes a motion that we filed remaining eight. Is there a second the motion. Absent because the second motion on favor of that motion please say aye. Motion carries and Committee on your last page of your report you'll find that we have some who had no findings the rest of the twelve then S. A. U. S. A. you take him to school district in Omaha those are for the have no findings would I have a motion then that we filed these reports no fighting Senator Gilmore makes a motion Is there a second. Resent agensi seconds on favor this motion. Is haven't. Any new business to come before the committee. Anything new. It's good to see if short quick to the point. All right I'll officially call this meeting adjourned thank you very much committee.