VIRGINIA- Members of the ISD 2142 school board took a walk back in time with Greg Knutson, of Walker Giroux and Hahne as they reviewed the district’s 2019-20 financial audit at a working …
VIRGINIA- Members of the ISD 2142 school board took a walk back in time with Greg Knutson, of Walker Giroux and Hahne as they reviewed the district’s 2019-20 financial audit at a working meeting on Tuesday at the district office in Virginia.
Normally an activity that takes place early in the school year, juggling the auditing process for clients in the midst of the COVID-19 pandemic was a challenge this time, Knutson said. The typical in-person process had to be done remotely due to COVID-19 restrictions.
Nonetheless, the news was good for ISD 2142, as Knutson had only one negative finding to report, and it was a familiar and longstanding one.
The district was cited with a finding of inadequate segregation of duties for cash transactions at individual schools.
To fully meet accounting standards, schools would need to have additional staff involved in the handling of cash. Adding additional office staff is not feasible.
The recommended corrective action plan falls to business manager Kim Johnson, who said she closely monitors the cash transactions at the schools. District administrators also review the duties of school office staff on a regular basis.
Knutson also noted two items of concern that don’t rise to the level of a formal finding but should be addressed, he said.
A review of 25 invoices revealed that five were not paid within 35 days of the receipt of the invoice, in violation of state statutes. Knutson said the district should continually monitor payments to ensure they are made in a timely manner.
A second item involved numerous old outstanding checks that were included on the district’s outstanding check list for bank reconciliation. Old outstanding checks are supposed to be turned over to the state, according to state law. Knutson recommended that the situation be reviewed by district administration and any old checks to be turned over.
In a review of the district’s various funds and liabilities, Knutson noted that the district indebtedness for school building refunding bonds, certificates of participation, and other bonds and long-term liabilities was at a total balance of $66.3 million as of June 30, 2020. The report stated that tax levies, if collected in full, will produce at least five percent in excess of the amounts needed to meet debt service requirements on the bonds and certificates of participation, which range in maturity dates from 2024 to 2041.
The balances of the four major fund categories as of June 30, 2020, were general, $7,179,255; debt service, $1,126,483; capital projects, $5,212,844; and nonmajor governmental, $74,329. Together they total $13,592,911.
In other matters discussed, members reviewed proposed changes in the district’s pay-for-performance plan for 17 at-will positions, most of which are administrative positions at the central office. The main change relates to individuals who are at the top of the salary range for their position and therefore don’t currently qualify for a pay-for-performance raise if their evaluations merited them.
A proposal to establish a stipend in lieu of a raise for qualified employees will be considered at the next formal board meeting.