The Natchitoches parish School Board received the 2017 Audit Report from David Engel of Fortenberry and Ballard at its committee meeting April 10.
Financial and Legal Compliance Report and an additional Agreed Upon Procedures Report (done this year because it’s required by the state, which adds additional cost to the audit). Looked at 33 different points of internal control, payroll, budgeting process and everything and there were no major findings to report.
Independent Auditors Report:
Looked at Governmental activities and some major funds including General Fund, Child Nutrition Fund, Title I Funds, Consolidate School District #10 Maintenance Marthaville Fund, and aggregate remaining fund information. All the fund reports were unmodified.
Governmental Activities however, qualified the report for the second year in a row mainly due to capital assets and evaluation. This means they don’t have 100% certainty as far as the numbers on the governmental wide statement of net position (See Financial Statement Findings #1 in article below).
Last year there were some issues with the Title I Program about some monies that were overcharged that had to be paid back. This program was audited again along with the lunch program and there were no written findings to report, which means that everything has been cleared off the books at this point.
State Legal Compliance Items:
1- fiscal activity, which has been on the books for a while with the Consolidated School District #8 fund which has a deficit fund balance. Although it’s been that way for a while now, it’s improving. May end up coming off the books next time.
2- getting out reports- The district’s CPA quit in December which is right at the 6 month point. This year the report was issued Feb. 9. Change of business manager also exacerbated the situation somewhat. This finding should end up clearing itself up next year.
Financial Statement Findings:
1- record keeping of capital assets- Previous CPA had records of school district’s assets, but, the School District should be the gatekeeper of its records. Now it’s a matter of finding out what they have and getting it put on their records. Whatever is tilted to the district is not kept on a ledger that is property of the Natchitoches Parish School Board. The opinion had to be modified because there was no certainty as to the evaluation of the assets (some $30 million). The new CPA is using the same numbers the district had last year, the ones used by the previous CPA. All the new CPA is doing is moving the numbers forward.
2- interfund transfers- When transferring from one fund to another, there needs to be a reason why you’re doing it. It’s hard to tie this puzzle together, but it may be system related to the district’s accounting system. The new CPA is trying to map all of these out.
3- new discovery with budgeting- The Title I Fund is a major fund, which means it has 10% of revenues and expenditures compared to all the funds. It has to be shown separately on the fund financial statements. The new CPA couldn’t put together a budget that could be formatted into their accounting. Director of Finances Richard Foshee said the district has a budget, it’s just not in their accounting system. This is something that can be corrected.
Items voted on at the April 12 Board meeting included:
Enter into a contract with Ecco Ride for student transportation services
Mechanical and electrical upgrades at Lakeview and Fairview Alpha
Vinyl Floor Covering for various rooms at East Natchitoches, LP Vaughn and Weaver
Permission to exercise renewal option with Ralston Exterminating for 2018-19 fiscal year
Approve memorandum of understanding for Natchitoches Parish School Board to work with Northwestern State University and their Clinical Residency and Field Experience students