Legislative Joint Auditing - Educational Institutions
Video
Transcript
1 document
Machine transcript
May contain errors. Verify important quotations against the official video.
About transcript accuracy
- Source
- SliQ live captions
- Model
- SliQ live ASR
- Processing date
- October 2, 2026
well then quit making the motion to second then. right folks next
Speaker 7
0:31
item on the agenda is for review go ahead. OK. thank you Mr. Chair and good afternoon there today there are 10 education audit reports for
Speaker 8
0:40
the committee's review. There are two reports with no findings and there were 8 reports with
findings. We will start with the two reports that were deferred from the August meeting at the august meeting the Broeville school district audit reports for Fy24 and Fy25 were presented and officials with the school district and des E were present to answer questions from the committee related to findings in the audit reports at the conclusion of presenting the reports, the committee deferred the reports to today's meeting for further consideration. School officials were not invited back since they
were present and answered questions at the august meeting so I'm not going to present the findings from the two reports again but the details of the findings along with management's response are included in the synopsis and with that I'll turn it
over to you Mr chairir. thank you and folks without objection we're going to refer the bible school district audit reports for our fiscal year 24 and25 to the division of elementary and secondary
education under code6-17-426 for consideration by professional licenger standards boardard and folks that's kind of the process so
without objection we'll consider this item reviewed right now we're
moving on to page 10 if the Texarkana school district
Speaker 7
2:14
of Miller County if you'll go back just one there's one for Prescott school
Speaker 8
2:20
district and and we'll start with that and then we'll doexarkana so there were two reports that contained findings that were deferred to the applicable prosecuting attorney and the attorney general the first was Prescott's school district which had one finding at the conclusion of this audit, Arkansas legislative audit and a law enforcement agency are in the process of investigating certain financial s transactions of the district. We will issue a report concerning these
transactions at the completion of the investigation and that report will be presented at tomorrow's full committee committee meeting that
Speaker 12
2:58
concludes the findings for Prescott School
District. Members any questions I'll make this comment you know I've talked with the prosecuting attorney's office. There seemed to be a lot of times we've referred things to the prosecutor. They do an annual report and it's a long report that says what they did and didn't do. However, there are a number of times that they
choose not to act and the prosecutor's office would be glad to come as of a couple of weeks ago they were glad to come if they have a motion from this committee that we invite them
to a meeting. We don't have a problem
with that do we Mr. Frank if they choose to show would anyone with the committee like to hear from him? to motion seconded by Representative Long with so moved we'll invite them to the next meeting right next is Texarkana
Speaker 8
4:00
Next report isextarana Arkansas school district which had two findings on March 21st of 2025, the district made a drawdown of magnet school assistance program funds totaling 804,000 which consisted of reimbursements of almost63,000 and and an advance payment of741,000 from March 21st,2025 through June30,2025, the district incurred expenditures of321,000
while also drawing down additional funds of 8,799,000. This resulted in significant time elapsing between the drawdown of funds and the disbursement of the funds by the district June30th the district had606,000 dollars of excess federal awards on hand. finding two the district initiated se ACH payments totalling $286,000 to fraudulent accounts between April and June 2025 after
receiving emails to change vendor bank information without properly verifying the authenticity of the change quest. District personnel discovered the unauthorized withdrawals after a vendor contacted the district for nonpayment. The district notified the financial institution and one of the seven trans a ction s totaling58,000 dollars was recovered. However, the remaining 20 and almost $28,000 could not be recovered and that concludes the findings for Texarkana Arkansas school district.
Reemb does anyone have questions Representative Long you're recognized Is is a representative fromex orana here I don't think they're here would you we our option is to hold it until the next meeting and invite them yes'll make the motion second. right we'll hold that over and invite them to the next meeting
and such a cordial group I know everyone's willing to
Representative Wayne Long
Unverified
6:10
looking forward to come explaining their issues to us arkansas
Speaker 8
6:14
northeastern collegelege is next. Yeah, so the remaining reports on the agenda they do not contain findings that were referred to theA or the AG. so ANZ had two findings. The first one from September to November of 2025 en unauthorized with draws totaling $8300 cleared the college's bank account
College personnel discovered the unauthorized withdrawals upon reviewing the affected bank account and all funds were were recovered from the bank finding two I'll do a summary because it's pretty lengthy during the audit we noted errors in the statement of net position statement of revenues expenditures and changes in net position. statement of cash flows and in the notes of the financial statements that resulted in in material misstatements to the financial
statements these errors were presented to the college and they were corrected by the college during our audit field work and that concludes the findings for Arkansas northeastern College. Members any questions? seeing no questions his item is reviewed and the next time next is Hebrew Spring School District which had one finding on March 17,2025. the district's board approved a $1200
nonrecurring bonus to all personnel who signed a 2026 contract which constituted an unequal distribution. The district did not obtain a vote of the majority of licensed personnel agreeing to this distribution as required by Arkans as code. that concludes the findings for Hebrew Springs. Members any questions on this
Speaker 11
7:59
item? seeing no questions this item is reviewedext loan Oak School
Speaker 8
8:11
District had two findings finding one during our examination of payroll records we noted that stipends and stipends and extra duties pay was not always indicated on the employee's contract addendum to their contract or board approved. The following discrepancies were noted wo employees were paid stipends of $1000 each that were not included in the employee's contract or addendum to the contract re employees were paid5,000 dollars,6,500 dollars
and $1050 for additional duties which were not included in the employee's contract or addendum to the contract one employee resigned from the district and was subsequently paid519 dollars for training and consulting services through payroll finding two on August 18,2025, the district discovered that a check for4,800 dollars which had been mailed to a vendor was fraudulently diverted to another bank account after the vendor contacted the district about a
balance due. The district notified its banking institution and all funds were recovered from the bank and that concludes the findings for loan Oak School District. members anyone have any questions seeing no questions this item is reviewed and the last report with finding was White County entral School District. The district requested and received a federal drawdown of400,000 dollars from their cop school violence prevention
program award on December3,2024. The program allows for a 10 dayy period for federal advance payments following the allowable 10 dayy period the district had344,000 of excess federal award funds on hand the remaining funds were spent from January28th of 2025 to February 11 of2025. and that concludes the findings for White County Central School District m emb er if anyone have any
Speaker 11
10:08
questions seeing no questions to item is reviewed
Speaker 8
10:16
and the remaining two other airports on the last page contained no findings and staff recommends these be filed as reviewed Members any
questions seeing no questions those items are reviewed. If anyone have any
Speaker 11
10:31
further business to bring before the committee saying none we are adjourned
Agenda
A. Call to order by Co-Chairman.
B. Adoption of Minutes of the August 13, 2026 meeting.
C. Review of Reports. Refer to the Synopsis
D. New Business.
E. Adjournment.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — LEGISLATIVE JOINT AUDITING - EDUCATIONAL INSTITUTIONS, Sep 10, 2026 | Agenda | 2 | Official source ↗ |
Speakers
Speaker 5
Senator Dan Sullivan Chair
Unverified
Speaker 7
Speaker 8
Speaker 12
Representative Wayne Long
Unverified
Speaker 11