Neelyville board hears auditor

NEELYVILLE -- The Neelyville School District is financially sound due to a conservative control kept over the budget, only administration needs to tighten its internal controls, according to an independent audit discussed at the board meeting Monday.

With praise, the board unanimously approved the audit for Fiscal Year 2009 conducted by a new accounting firm, since the previous Kennett-based company dropped the district as a result of downsizing.

"With your balance, you're well prepared, should there be a drawback in state appropriations," said Dwayne Clark, certified public accountant from Hillin and Clark.

The district's bottom line was more than $1.5 million, which includes nearly a 10 percent increase in unrestricted funds from July of last

The year's statement of cash flows showed general revenues totaling $5,615,282. Compared to the operating expense of $5,235,789, the difference was a surplus of $379,493.

Excluding fund transfers, expenditures were itemized as follows: $3,189,613 for instruction, $122,643 for attendance and guidance, $162,924 for health services, $119,453 for improvement of instruction, $41,130 for professional development, $90,647 for media services, $349,513 for general administration, $518,221 for operation of plant, $288,367 for pupil transportation, $325,803 for food service and $24,403 for adult/community programs.

A breakdown of revenues collected was $1,431,057 in local taxes, $79,076 from the county, $1,112,162 from the state and $772,956 from federal.

Property taxes increased by $364,490, as a result of the district's rising assessed valuation. Though the tax levy has remained $2.75 per $100 assessed valuation, the total valuation went from $30,080,124 in calendar year 2007 to $30,444,614 the following year with agricultural, commercial and personal property increasing while residential decreased.

The few findings in the audit revolved around the district's segregation of duties. The auditor said he does not expect the school to hire additional qualified employees, instead "it is just a reminder to have good oversight."

The issue was most apparent in the case where an outstanding check of $31,000 written more than a year ago to the district's former health care provider was not placed back on the books.

"You need to do some type of investigation, periodically looking at outstanding checks, so they can be voided or reissued," Clark said.

The other issue he brought to the attention of the board was that teachers sign a contract to be paid according to a salary schedule based on education and experience, yet a pay scale sample showed that one employee may be overpaid and another underpaid.

The district's response written in the 43-page report was that administrators will implement procedures to detect payment errors. Brad Hagood, Neelyville superintendent, later told the board that the teachers in question had unique workloads, but he would discuss the matter further in closed session.

As a result of the careful examination, the auditor noted that the district is being billed $800 per year in service charges from a bank, and might consider finding out how to avoid this.

"We need to find a bank that's willing to work for us, not penalize us for holding our money," said Duke Hansen board secretary

The auditor also recommended that the district state the facts and reasons for making budget amendments.