Ms. Preston stated that the district was visited by the AG for three audits. The audits were for the FTE, Virtual Schools, and Operational Issues. She noted that they have nothing in writing at this time but can tell the Board what they think will be in the audit at this point in time.
Ms. Clark stated that when the AG gave their verbal presentation to the district, there were nine issues. She noted that their issues were all things that could be fixed rather quickly and nothing out there to be very concerned about. She listed them so they could decide for themselves. Ms. Clark stated that their Chair would comment at the end of her presentation.
1. Board Minutes - In review of the board minutes, there was not a timely submission of the minutes to the Board for approval.
Ms. Preston stated that there was another tentacle to that in which the Board would approve all the minutes for all the committees. She stated that she is pursuing that issue.
Ms. Henderson stated that was very disturbed because this district has never approved the minutes for all the committees and now we are going to be written up for that. Ms. Preston said that this is something new that the AG is looking at in the districts and stated that she would like in writing to see the Rule or the Statute on it.
Dr. Murray stated that not only is the AG saying that they are wanting the Board to approve all those minutes, they are wanting us to do it in short order which is logistically impossible. She has asked for Mr. Bistline, School Board Attorney, to be involved in some of this because she questions their interpretation.
Mr. Ziegler stated that when minutes are approved, he is approving minutes for a meeting that he personally participated in to say that is what accurately happened. He stated that he would never approve minutes for a meeting that he did not participate in because he would have no idea as to what happened during the meeting.
Ms. Preston stated that we had no idea that was going to be on the report.
Dr. Murray stated that she has had discussions in regard to the School Board minutes, as we put out a lot more detail then we are required to submit. She noted that all we are required to show are the votes on the required motions, and we go way beyond that in our minutes. Dr. Murray stated with some of the things that the district is currently going through, to maintain that level of transparency that is preferred, if we meet the auditors requirements, our only way of doing that is to cut down what we include in our minutes and tell everyone to watch our videos. She said that she would prefer to keep the detail in the minutes. We are having those discussions, and we will work to resolve it.
2. Insurance Committee Minutes - There were no minutes taken at several of the insurance committee meetings because we were not aware that we needed to take minutes. We are now taking the minutes so that item is now fixed.
3. Fraud Policy- We have a very detailed ethics policy which was not detailed enough for the AG. They had some specific things that they wanted included in our ethics policy. The AG specifically mentioned anonymous reporting. Dr. Binggeli spoke to the AG and told them we have that as a practice. The AG wants the district to work on the wording in the policy to make that clear. Ms. Preston noted that a previous Board took the higher path and brought forth an ethics policy because of the negative connotation that fraud policy brings with it.
4. Time Keeping Audit - The AG wished for us to expand on our time keeping and have the immediate supervisor approving the time and the leave for all employees in writing. The district responded that we are working on an electronic time sheet and we have a goal for 2015 to get that process up and working. It is very time consuming and the district is attempting to implement that within the confounds of the current staff.
5. Differential Pay - Ms. Preston explained that the district had not properly addressed in the language about differential pay for your D and F schools or your low performing schools. She questioned the AG on how you could address when there has been no money to address it. Ms. Preston stated that some of these things are being tweaked in Tallahassee so some of these issues may be modified or even taken out before we receive the final analysis.
Ms. Kneessy brought up Endeavor and what has been done there. Ms. Preston stated that the AG is looking for very specific language. She stated that we have addressed this issue. Ms. Kneessy stated that it seems that the language is more important to the AG than what the district is actually doing. Ms. Preston agreed.
Discussion ensued about the AG and how they changed their cycle of audits, the scope of what they are looking at, and the operational audit is different then it ever has been in the past.
6. Land Buildings and Improvements - The AG would like to see more detail in a subsidiary ledger by school, the year the school was built and all the additions and improvements that has happened to that school over the years since the school was built. Ms. Clark said that would take a significant amount of staff time and could not even estimate when the district could complete a task of that magnitude.
Ms. Henderson stated that this should be a from this day forward type of solution.
Dr. Murray stated that if you look at how recordkeeping has changed over the past 50 years, much of that information is not available to us any longer. How can the AG hold us responsible for something that was not mandated for a 50 year period of time?Ms. Clark said that we have some of the data but just not listed in the format the AG wishes to see it.
7. Wire Transfer Policy - The AG wants the district to write a wire transfer policy. Ms. Clark noted that the district has good internal control on all our wire transfers. She noted that we have the procedures in place, the Board approves the warrant list once a month and the AG agrees that it is all in place, but we do not have a policy that says what we do.
8. Health Insurance Program - We had a finding that the AG wants the district to create the target balance of ten or eleven million of the sixty-day balance. They want us to bring the balance up to the sixty day balance. Ms. Clark stated that we have been working on this for several years.
9. Purchasing Card and Procedures - The AG found that the principals are signing their own p-card. They want the principals immediate supervisor approving all p-cards for those principals rather than principal signing off for them. Ms. Preston questioned the AG on who should sign off for the Board Members and the Superintendent p-cards. Discussion ensued about the processes that are currently in place.
Ms. Murtha stated for the record that these recommendations were not from McGladrey. They are from the Auditor General. She noted that if these findings (listed above) are what the AG walked away with after spending nine months in the district, the audit committee, the citizens, and the School Board should feel pretty good about what is going on in the school district.