The 2012 legislative audit of the Clinton School District noted five items that caught auditors’ attention.
The audit, signed by Larry W. Hunter, deputy legislative auditor, noted that the matters were discussed previously with Clinton School District officials during the course of the fieldwork and at the exit conference.
The items noted in the "Management Letter" included in the audit were:
1. The superintendent’s contract required living in district housing as a condition of employment. Although the superintendent did not live in the district house for a significant period, a family member lived in the house rent-free, with the district paying the utilities. On Dec. 7, 2012, the School Board retroactively approved renting the house to the superintendent’s family member for $1 per month beginning July 1, 2011. The superintendent reimbursed the district $3,801 for the cost of the utilities and rent on Dec. 19, 2012.
2. A review of salary payments for additional duties revealed the following:
• Ten employees were paid $45,250 above contracts for additional duties not approved by the School Board. The board subsequently approved these payments retroactively on July 12, 2012.
• One employee was paid $1,000 above contract for additional duties not approved by the School Board.
• Significant portions of the salary payments noted above were documented by time sheets not reflecting actual hours worked, but created to justify a salary stipend previously agreed to by the federal coordinators and/or superintendent.
A similar finding was reported in the previous audit.
3. Numerous accounting entry errors have negatively affected the quality of the accounting records. Abnormal account balances such as negative receivables and negative payables existed on the district’s balance sheet, but cannot be traced to actual transactions. A similar finding was reported in the previous audit.
4. The district could not document that procedures were followed to select a construction manager for the junior high addition and renovation as set forth in Rules and Regulations Governing the Use of Construction Management as a Project Delivery Method as promulgated pursuant to Ark Code Ann. 19-11-801 - 19-11-805.
5. On May 18, 2012, the district contracted for a combined position not included on the classified salary schedule for fiscal year June 30, 2013. On July 12, 2012, the board approved this position, which changed the existing classified salary schedule without submitting the proposal to the personnel policy committee as required by Ark. Code Ann. 6-17-2305. On Sept. 21, 2012, the board repealed the previously approved change to the classified position, and submitted this proposed change to the personnel policy committee. On Nov. 19, 2012, the board again approved this classified position.
The entire audit can be found at http://arklegaudit.gov/ Under "Our Reports" and "Search Audits."
The audit was released last month.