L. Freeman Wish, CPA
Clarksville School District
1701 Clark Road
Clarksville, AR 72830
479-705-3200
Freeman.Wish@csdar.org
6-13-616. Qualifications of directors.
(a) No person shall be eligible to be a member of any school
district board of directors in this state unless he or she is a
qualified elector of the school district which he or she serves.
(b) No person who is elected to a school district board of
directors shall be eligible for employment in that same school
district.
History. Acts 1935, No. 30, § 4; Pope's Dig., § 11524; Acts 1957,
No. 131, § 1; A.S.A. 1947, §§ 80-504, 80-504.1; Acts 1989, No. 242,
§ 1; 1993, No. 294, § 7; 1993, No. 346, §1; 1999, No. 1390, § 1.
6-13-608. Length of directors' terms.
All members of a school district board of directors shall be elected to a
term of office of not less than three (3) years nor more than five (5) years in
length and with the expiration of such terms so arranged that, as nearly as
possible, an equal number of positions are filled each year. All members of
a school district board of directors shall have terms of office of equal
length.
History. Acts 1981, No. 50, § 1; A.S.A. 1947, § 80-549; Acts 1999, No. 1078, §
35.
Effective Dates. Acts 1999, No. 1078, § 92: July 1, 2000.
(a) All school districts shall have a board of directors with five (5)
members or seven (7) members or nine (9) members in the case of a
school district having an average daily attendance of twenty-four
thousand (24,000) or more.
(b) Subsection (a) of this section shall not apply to those school districts
that have a board of directors of seven (7) members, or in the case of a
school district having an average daily attendance of twenty-four
thousand (24,000) or more, nine (9) members, if that school district is
operating under a court order or a consolidation agreement that provides
for a board of directors.
(c)
(1) No board of directors shall have an even number of
directors.
(2) No less than ninety (90) days prior to the next annual school
election, any school district with an even number of
directors shall file a petition with the State Board of
Education to establish the requisite odd number of directors.
(3) If the number of members of a board of directors needs to be
reduced to create an odd number of directors, the board of
directors in office on August 12, 2005 shall draw lots to determine
which board positions will be eliminated.
(d) Any change in the number of directors serving on the local
school board of directors required under this section shall be
effective upon the directors taking office following the 2005
annual school election.
(d) Any change in the number of directors serving on the local
school board of directors required under this section shall be effective
upon the directors taking office following the 2005 annual school
election.
History. Acts 1999, No. 1078, § 29; 2005, No. 2151, § 13.
6-13-109. School superintendent.
(a) The public school districts in the state shall each employ a
superintendent of schools, whose qualifications and duties shall be
prescribed by the General Assembly and the State Board of
Education.
(b) "Superintendent of schools" is defined as the executive officer of a
school district board of directors directing the affairs of the school
district and teaching not more than one-half (1/2) of the time in the
school day.
History. Acts 1999, No. 1078, § 27.
6-13-617. Oath.
(a) Each director elected or appointed shall, within ten (10) days after
receiving notice of his election or appointment, subscribe to the
following oath:
"I,__________________, do hereby solemnly swear or affirm, that I
will support the Constitution of the United States and the Constitution
of the State of Arkansas, and that I will not be interested, directly or
indirectly, in any contract made by the district of which I am a director,
except as permitted by state law and that I will faithfully discharge the
duties as school director in ____________ School District, No.
____________ of ____________ County, Arkansas, upon which I am
about to enter."
(b) The county clerk, upon receipt of the oath prescribed for a director,
shall immediately commission such persons, and they shall enter at
once upon their duties as directors.
History. Acts 1935, No. 30, § 12; Pope's Dig., § 11532; A.S.A. 1947, § 80-505;
Acts 2001, No. 1599, § 20.
6-13-618. Organization - Disbursing officer.
(a)
At the first regular meeting following the annual school election, the
board of directors of each school district shall organize by electing:
(1) One (1) of their number president;
(2) One (1) of their number vice president; and
(3) A secretary who may be, but need not be, a member of the board.
(b)
(1) By resolution adopted by majority vote, the board shall designate
one (1) of its members who shall serve as the primary board disbursing
officer of the district.
(2) In addition, the board may designate one (1) or more board members as
an alternate board disbursing officer or officers in the absence of the
designated primary board disbursing officer.
(3) Such a resolution must be filed with the county treasurer and the
Director of the Department of Finance and Administration.
(c) No warrant or check other than food service or activity funds warrants or checks
shall be valid in the absence of the following manual or facsimile signatures:
(1) That of the designated board member serving as disbursing officer
for the district or the designated alternate; and
(2) That of the superintendent of the school district.
History. Acts 1959, No. 78, § 1; 1967, No. 187, § 1; A.S.A. 1947, § 80-506; Acts 2003, No.
671, § 1.
(a)
(1) The board of directors shall hold regular monthly meetings during the school
term and shall meet on call of the president or secretary or any three (3) members
of the board of directors or when petitioned to do so by a petition in writing
signed by fifty (50) electors in the school district.
(2) Regular meetings of the school board of directors and all school board
committees, and special meetings of the school board of directors and school
board committees that deal with personnel or personnel policies, shall, except in
emergency situations, be held after 5:00 p.m.
(3)
(A) Not less than ten (10) days prior to the date of a regular meeting of
its board of directors, a public school district shall publish on the
public school district's website a notice of the date, time, and place of
the meeting.
(B) Not less than twenty-four (24) hours prior to a rescheduled regular
meeting, a public school district shall publish a notice on its website of
the change in the date, time, or place of the regular meeting.
(b)
(1) Minutes of regular and special meetings of the school board of
directors shall be kept by the secretary of the board of directors and
filed by him or her in a permanent record.
(2) This record shall also contain a copy of all budgets of the school
district and all reports of the county treasurer on the financial affairs of
the school district.
(c) (1)
(A) A majority of a quorum voting affirmatively shall be required for
the passage of any motion or resolution.
(B) Any member who abstains from voting shall be counted as having
voted against the motion or resolution.
(C) If a member announces a conflict of interest with regard to the issue,
the member may leave the meeting until the voting on the issue is
concluded, and the member who abstains from voting thereby shall not
be counted as having voted.
(c)
(2) For the purposes of this section, a quorum shall be a majority of the
membership of the board of directors.
(d)
(1) Any member of the board of directors who misses three (3) regular
and consecutive board of directors meetings during a school year for any
reason other than military service of the member or illness of the
member verified by a written sworn statement of the member's
attending physician may be removed from office by a majority vote of
the remaining board members, but only after an opportunity for a
hearing before the board of directors upon fifteen (15) days notice
received by personal delivery or by certified mail with the return receipt
signed by the addressee only requested.
(2) If the board of directors takes action to remove the member from
office, the remaining members shall then appoint another individual to
serve until the next annual school election, when electors shall select in
the usual manner a director to serve the unexpired term of the removed
member.
History. Acts 1931, No. 169, § 96; Pope's Dig., § 11534; Acts 1983, No. 855, § 1;
A.S.A. 1947, § 80-507; Acts 1993, No. 608, § 1; 1995, No. 1347, § 1; 2007, No. 1588, §
1.
The board of directors of each school district in the state is charged with the
following powers and required to perform the following duties in order to provide
no less than a general, suitable, and efficient system of free public schools:
(1) Attend meetings of the school board;
(2) Determine the mission and direction of the school district;
(3) Adhere to state and federal laws governing public schools;
(4) Enact, enforce, and obey school district policies;
(5) (A) Employ staff, including:
(i)
(a) A superintendent of schools to oversee the day-today operations of the school district.
(b) A superintendent shall be evaluated annually or
no less often than prior to any extension of his or her
employment contract.
(c) Superintendents and assistant superintendents
may be employed under contract terms and
conditions that incorporate all elements prescribed
by the State Board of Education; and
(ii)
(a) School district employees under initial
written employment contracts in the form
prescribed by the State Board of Education,
not including day-to-day substitutes.
(b) The employment contract shall:
(1) State the duration of employment,
specific duties of the employee and
the annual salary or hourly wage of
the employee and projected annual
earnings in the case of nonexempt
employees under applicable state and
federal law; and
(2) Incorporate all personnel policies
adopted by June 30 to be in effect on
July 1 of the following employee
contract year, subject to the
requirements and exceptions
contained in §§ 6-17-204 and 6-17205.
(5)(B) Copies of initial written employment contracts and renewed
written employment contracts issued in accordance with §§ 6-17-1506
and 6-17-1703 shall be distributed as follows:
(i) One (1) copy to be given to the employee;
(ii) One (1) copy to be retained by the school board of
directors; and
(iii) One (1) copy to be retained by the school district's
treasurer or bookkeeper;
(6) Understand and oversee school district finances required by law to
ensure alignment with the school district's academic and facility needs
and goals, including without limitation:
(A) Reviewing, adopting, and publishing the school district's
budget;
(B) Overseeing and monitoring the school district finances,
including:
(i) Revenues;
(ii) Expenditures;
(iii) Investments;
(iv) Debts;
(v) Obligations;
(vi) Inventory; and
(vii) Real property;
(C) Borrowing money as necessary, but in no case shall the school
board of directors permit the school district to end the fiscal year
with a negative legal balance;
(D) Entering into contracts for goods and services necessary to
operate the school district;
(E) Buying, selling, renting, and leasing real property and personal
property on behalf of the school district;
(F) Receiving, reviewing, and approving each annual financial audit
report and presenting it to the public;
(7) Ensure that:
(A) Necessary and sufficient facilities are built or obtained,
furnished, and maintained; and
(B) All properties belonging to the district are managed and
maintained for the benefit of the school district;
(8) Approve the selection of curriculum and ensure that students are
offered and taught the courses of study and educational content
required by the State Board of Education;
(9) Visit district schools and classrooms when students are present
no less than annually and attend some events and functions;
(10) Obtain the training and professional development necessary to serve
as active and informed members of the school board of directors; and
(11) Do all other things necessary and lawful for the conduct of efficient free
public schools in the school district.
History. Acts 1931, No. 169, § 97; Pope's Dig., § 11535; Acts 1939, No. 316, § 1;
1941, No. 389, § 1; 1943, No. 96, § 1; 1949, No. 287, § 1; 1953, No. 204, § 1; 1957,
No. 280, § 1; 1969, No. 327, § 1; 1973, No. 253, § 3; 1973, No. 690, § 1; 1977, No.
658, § 1; 1983 (Ex. Sess.), No. 41, § 1; 1983 (Ex. Sess.), No. 53, § 1; A.S.A. 1947, §
80-509; Acts 1989, No. 822, § 1; 1993, No. 294, § 7; 1995, No. 233, § 1; 1999, No.
391, § 3; 1999, No. 1078, § 38; 2001, No. 581, § 1; 2001, No. 1747, § 1; 2003, No.
1738, § 1; 2007, No. 617, §§ 5, 6; 2007, No. 710, § 1; 2007, No. 1573, § 45; 2009,
No. 1180, § 2.
6-13-622. Publication of budget.
(a) The requirement of Arkansas Constitution, Amendment 40, for
publication of the budget shall be discharged by the board of directors
of each school district by publication of its budget one (1) time in some
newspaper published in the county in which the district lies or, if the
district lies in more than one (1) county, in the county in which the
district is administered.
(b) The publication shall be made not less than sixty (60) days before
the school election at which the annual ad valorem property tax for the
district is decided by the electors.
History. Acts 1951, No. 403, § 4; A.S.A. 1947, § 80-538; Acts 2003,
No.1280,§ 1.
“The secret of managing is to keep the guys who hate
you away from the guys who are undecided.”
Casey Stengel
Voting Public/Board of Directors
Superintendent
Curriculum
Principal
Teachers/Staff
Maintenance/Transportation
Staff
Financial
The secret to how a structure works is not the
position of the agents…but the condition of the
LINES IN BETWEEN!
“Life is like a dogsled team. If you ain’t the lead dog,
the scenery never changes.”
Lewis Grizzard
“Management is efficiency in climbing the ladder of
success; leadership determines whether the ladder is
leaning against the right wall.”
Steve R. Covey
Author
The Seven Habits of Highly Effective People
 Business Stockholders invest in a business voluntarily.
vs.
 Voters pay mandatory property taxes to invest in
schools.
 Businesses are generally run by a board of directors
that has intimate knowledge of the business
environment and industry.
vs.
 School Board of Directors only qualification is that
they be a registered voter and be breathing.
The manager administers.
The leader innovates.
The manager is a copy.
The leader is an original.
The manager maintains.
The leader develops.
The manager relies on control.
The leader inspires trust.
The manager has a short-range view.
The leader has a long-range perspective.
The manager asks how and when.
The leader asks what and why.
The manager has his or her eye on the bottom line.
The leader has his or her eye on the
horizon.
The manager accepts the status quo.
The leader challenges it.
The manager is the classic good soldier.
The leader is his or her own person.
The manager does things right.
The leader does the right thing.
Managers are necessary.
Leaders are essential.
“You can have brilliant ideas, but if you can’t get them
across, your ideas won’t get you anywhere.”
Lee Iacocca
 Senior Management could identify only 4% of the




problems of the organization
When middle management was added, it went up to
9%
Adding all supervisors increase it to 74%
When all staff were included it was up to 100%
We need to let those under us see how they can help
improve the organization
“You do not lead by hitting people over the head –
that’s assault, not leadership.”
Dwight D. Eisenhower
6-20-1805. Training requirements for
bookkeepers.
(a) The State Board of Education shall establish by rules or regulations
appropriate training and continuing education requirements for individuals
whose job responsibilities include preparing a budget or classifying, recording,
or reporting receipts or expenditures of a school or school district.
(b) The State Board of Education shall establish rules or regulations to assure the
proficiency of school employees or other individuals to properly classify, record,
and report the fiscal transactions of schools or school districts.
(c) If the State Board of Education determines that a school or school district is
not properly recording or reporting the fiscal transactions or budget of the
district, the superintendent and school board may be required to appear before
the State Board of Education to explain why the school or school district has not
complied with the fiscal recording and reporting requirements.
History. Acts 2003 (2nd Ex. Sess.), No. 40, § 2.
(a)As used in this section, “general business manager” means a chief financial
officer or business manager, however the position is titled, who:
(1)Is responsible for the fiscal operations of the public school district; and
(2)Performs his or her duties under the direction of the superintendent of
schools of the public school district.
(b)(1)On and after July 31, 2007, a general business manager for a public school
district shall meet the minimum qualifications established by rule of the
Department of Education.
(2)This subsection (b) is intended to require minimum qualifications for a
general business manager that support the implementation of best financial
management practices for public school districts.
(c)A general business manager who was employed prior to July 31, 2007, shall be
exempt from the provisions of subsection (b) of this section.
History. Acts 2007, No. 1591, § 1.
 Important to the way the school operates
 Evidence of decisions, transactions, operations
 School history
 Strategic Planning
Recorded information, regardless of medium or
characteristics, received by an organization that is
evidence of its operations, and has value requiring
its retention for a specified period of time.
Information created, received and maintained by
an organization or person in pursuance of legal
obligations or in the transaction of business.
 Correspondence
 Invoices
 Purchase Orders
 Payroll Records
 School Board Meeting Minutes
 Bond Issues
 Elections
 E-Mail
 Telephone Calls
The systematic control of all records
from their creation or receipt,
through processing, distribution,
organization, storage and retrieval to
their ultimate disposition.
 Comply with Government Regulations
 Reduce Legal Liability
 Control Valuable Company Assets
 Reduce Record Archive Size
 Record
 File Plan
 Retention Schedule
 Records Retrieval
 Disposition
A system for categorizing records, divided into
categories.
Each category has its own retention schedule.
All records in the system are assigned to a category.
The amount of time a record should remain in the
system.
When (and if) the record should be disposed.
How the record should be disposed.
Structured query, full text search, or a combination of
both.
Export records into their native formats.
Print or e-mail records.
Version records.
Add notes or comments to original record.
The method by which a record is removed from the
system.
Disposition is based on time, event, or a combination of
time and event.
The process is generally either transfer or destruction.
Not all records are permanent records.
Non-permanent records may have set retention rules.
Enforcing retention rules removes records when they
become obsolete.
Example: Destroy employee personnel records seven
(7) years after retirement.
Lack of a formal Arkansas School Record Retention
and Disposal Plan.
West Virginia Records Retention Schedule
Michigan Public Schools Record Retention Plan
Recommend that each school adopt a Record
Retention Plan and follow it.
19-4-1108. Retention of documents.
(a) The original evidences of indebtedness, including documents prepared in connection with
purchasing procedure, and all original contracts, invoices, statements, receipts, petty cash
tickets, bank statements, cancelled checks drawn upon bank accounts, and other original
supporting papers shall be retained in the permanent file of the business office of each state
agency. These documents shall be kept in a safe place subject to audit and shall not be
destroyed until authorization is given for their destruction by the Legislative Auditor.
(b) With the approval of the Legislative Auditor of the state, a state agency may retain evidences,
to satisfy record retention policies, of indebtedness and other contracts, invoices, statements,
receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts,
and other supporting papers by microform or a form of stored images in a computer system
or other form of computer technology in lieu of retaining the originals of such documents.
History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 1997, No. 541, § 2; 2001, No. 1453, §
33.
R1-19-4-1108 Public Records
The law defines public records as writings, recorded sounds, films, tapes,
electronic or computer-based information or data compilations in any medium
required by law to be kept or otherwise kept and which constitute a record of the
performance or lack of performance of official functions which are or should be
carried out by a public official or employee, a governmental agency or any other
agency wholly or partially supported by public funds or expending public funds.
All public records shall be open to inspection and copying by any citizen of the
State of Arkansas during the regular business hours of the custodian of the
records, except as otherwise specifically provided by law.
Refer to Arkansas Code ACA 25-19-105 for exceptions, charges for providing
copies of records and required response time to requests for copies and ACA 2519-109 for special requests for electronic information.
R2-19-4-1108 Records Retention
All records that are public property are required to be maintained by the agencies
that generate the documents. The type of business record in question and the
business process it supports determines the length of retention. Generally, all
records should be maintained a minimum of three fiscal years. All records and
supporting documentation must be maintained until they have been audited and
may not be destroyed until permission has been granted by the Division of
Legislative Audit. Other records such as records for grants are maintained
according to State or Federal laws.
Public records can only be destroyed after permission is granted by the Division
of Legislative Audit.
Storage of records in electronic form is permissible in some cases. Refer to
Arkansas Law ACA 19-4-815, 19-4-1108, 25-32-112, 13-4-203, 25-32-117, 25-32118.
Effective January 1, 2006, the Executive Chief Information Officer shall
promulgate rules and guidelines governing the retention and management of
public records and issue periodic updates as necessary. Each State agency shall
comply with these rules and guidelines by the earlier of July 1, 2007, or when the
line item appropriation is established to comply with this requirement.
Applies to all cities, county or local governments in
Arkansas
Requires the development of rules and guidelines for
the retention of public records commonly found in
state agencies
Requires rules and guidelines to be effective July 1, 2007
 Agency Directives,
Internal Policies and
Procedures
 Keep until superseded
plus three years
 Meeting Agenda and
Minutes of Governing
Bodies
 Permanent
 Employee Benefit
Records and Employee
Personnel Records
 Workers Compensation
Accident Reports
 5 years after separation
or until closure of
unresolved personnel
issues, whichever is
greater
 3 years from date of
injury
 Until authorized by the
 Accounts Payable
 Accounts Receivable
legislative auditor (as
required by Arkansas
Code)
 Until authorized by the
legislative auditor (as
required by Arkansas
Code)
 West Virginia – Audit + 3 years
 Michigan – Current FY + 7 years
 Arkansas – Until authorized by legislative auditor
 West Virginia – Audit + 3 years
 Michigan – Current FY + 7 years
 Arkansas – Until authorized by legislative auditor
 West Virginia – Audit + 3 years
 Michigan – Current FY + 7 years
 Arkansas – Until authorized by legislative auditor
 West Virginia – Audit + 3 years
 Michigan – Current FY + 7 years
 Arkansas – Until authorized by legislative auditor
 West Virginia – Permanent
 Michigan – Expiration + 7 years
 Arkansas – Expiration + 5 years
 West Virginia – Permanent
 Michigan – Permanent
 Arkansas – Until the next audit report is issued by
Legislative Audit
 West Virginia – 50 years
 Michigan – Current Fiscal Year + 50 years
 Arkansas – Permanent
 West Virginia – At least 4 years
 Michigan – Current Fiscal Year + 1 year
 Arkansas – 5 years after case closed
 West Virginia – At least 4 years
 Michigan – Current Fiscal Year + 7 years
 Arkansas – Not Addressed in Arkansas Record
Retention Schedule
 West Virginia – Not Addressed
 Michigan – Current Fiscal Year + 3 years
 Arkansas – Until authorized by legislative auditor
 After a 6-week trial and 10 days of deliberation, a jury
found Arthur Andersen guilty of obstruction of justice
when it destroyed Enron Corp. documents while on
notice of a federal investigation by the SEC.
 The jury rejected Arthur Andersen’s defense that the
documents were destroyed as part of its housekeeping
duties and not as a ruse to keep Enron documents
away from the regulators.
 Arthur Andersen received the maximum sentence of 5
years probation and a $500,000 fine.
 35,000 people lost their jobs worldwide.
 Court did overturn the Arthur Andersen conviction,
but it was too late to save the company.
The lesson to be learned from the Arthur Andersen
experience is that a Document Retention Program, an
otherwise critical part of a company’s risk
management program, will not save you from sanction
if the policy does not conform to law, either in content
or in implementation.
 Applies to Board Member, Administrators, and
Employees.
 Act 1599 sets the guidelines for business
transactions between the school district and its
board, administrators and employees.
 May require both local board approval and state
board approval.
 Refer to Arkansas Code 6-24-100 through 6-24-120
for detailed information.
 The spirit of this act is to provide for full disclosure of
business activities between the local school district
and its board members, administrators and
employees.
 Board Members and Administrators are held to higher
ethical standards, since they are in a position of
control.
SECTION 2. Arkansas Code § 6-24-105 is amended to read as follows:
(a) General Prohibition. Except as otherwise provided, it is a breach of
the ethical standards of this chapter for a board member to contract
with the public educational entity the member serves if the board
member has knowledge that he or she is directly or indirectly
interested in the contract.
(b)(1)(A)(i) Employment of Family Members. This chapter does not
prohibit family members of board members from being employed by
the public educational entity the board member serves if the board
determines that the employment is in the best interest of the public
educational entity A board member's family member may not be
initially employed by the public educational entity the member serves
during the member's tenure of service on the local board for
compensation in excess of five thousand dollars ($5,000) unless the
Director of the Department of Education issues a letter of exemption
and approves the employment contract based on unusual and limited
circumstances.
(ii) The determination of unusual and limited circumstances shall be at
the sole discretion of the Director of the Department of Education and
may be further defined by rule of the State Board of Education.
(B) A family member of a school board member who was employed by
the public educational entity during the school year immediately
preceding the election of the board member may continue
employment with the public educational entity under the same terms
and conditions of the previously executed contract and any renewal of
the contract under § 6-17-1506.
(C) Subject to the local board's written policy, a qualified family member
of a board member may be employed as a substitute teacher, substitute
cafeteria worker, or substitute bus driver for a period of time not to
exceed a total of thirty (30) days per fiscal year for the public
educational entity served by the board member.
(2)(A)(i) No employment contract that is prohibited
under subsection (b) of this section is valid or
enforceable by any party to the employment
contract until approved in writing by the Director
of the Department of Education.
(ii) The Director of the Department of Education's
approval of an employment contract may include
restrictions and limitations that are by this
subsection incorporated as terms or conditions of
the contract.
(B) Excluding any renewal of a contract under § 6-17-1506,
any change in the terms or conditions of an employment
contract, a promotion, or a change in employment status
for a family member of a school board member employed
by a public educational entity that will result in an increase
in compensation of more than two thousand five hundred
dollars ($2,500) must be approved in writing by the
Director of the Department of Education before any
change in the terms or conditions of the employment
contract or promotion or changes in employment status are
effective, valid, or enforceable.
Roslyn, New York
$11.2 million dollars stolen
Those involved:
Superintendent
District Treasurer
Accounting Clerk (Treasurer’s niece)
School Auditor
An audit is the process by which an independent accountant
reviews your financial records and procedures in order to
express an opinion of the fair presentation of your financial
statements.
An audit is not designed to detect fraud.
An audit is not designed to make your life miserable.
 Audit Planning Form Completion
 Internal Control Questionnaire Completion
 Risk and Control Assessment
 Tests of Controls Assessment
 Substantive Testing of Financial Data
 Required by state law.
 Required by federal law.
 Required by debt agreements.
 Required by bonding companies.
 Citizens like them.
 Evaluation of the performance of management.
 Visit with your auditor.
 Find areas for improvement.
 Keep records up to date.
 Maintain all minutes in timely manner.
 Reconcile all bank statements in a timely manner.
 Record all asset additions and retirements promptly.
 Fixed Asset Findings
 Accounting Records/Internal Control
 Employee Records/Payments
 Uncollaterized Bank Accounts
 Federal Compliance Issues
 Activity Funds
 Bids, Bonds, Architects
 Undocumented/Unauthorized Transactions
 Self Construction
 Conflicts of Interest
 Segregation of Duties/Internal Control
 Exceeded Budget/Unallowable Costs
 Misstatements Missed by Internal Controls
 Davis-Bacon Act
 Federal Cost Principals (Time Certifications)
 Fixed Assets Not Recorded In Inventory
 Buy American Act
 Incorrect Employee Payroll
 Bank Reconciliations (Accuracy/Timeliness)
 Misappropriation of Funds
June 30, 2000
1. Fixed Asset Findings
2. Accounting Records
3. Employee Records/
Payments
4. Uncollaterized Bank Accounts
5. Federal Compliance
6. Activity Funds
7. Bids, Bonds, Etc.
8. Unauthorized Transactions
9. Self Construction
10. Conflicts of Interest
June 30, 2011
1. Segregation of Duties/IC
2. Exceeded Budget/Costs
3. Misstatements Missed by IC
4. Davis-Bacon Act
5. Federal Cost Principles (Time)
6. Fixed Asset Findings
7. Buy American Act
8. Incorrect Employee Payroll
9. Bank Reconciliations
10. Misappropriation of Funds
Finding:
The majority of findings in this category involved the
failure to maintain periodic time certifications or
monthly personnel activity reports were not prepared for
employees who worked with Federal programs.
Fix:
Maintain accurate time sheets for all employees,
especially those working in federal programs
Clarksville School District
Monthly Time Sheet
Name:
Social Security Number (Last 4 Digits Only)
School:
Job Assignment:
Source of Federal Funding:
For Month Ending July 31, 2010
(Please record the hours worked each day.)
Saturday
For the week of:
Fed
Non-Fed
Sunday
Fed
Non-Fed
Monday
Fed
Non-Fed
Tuesday
Fed
Non-Fed
Wednesday
Fed
Non-Fed
Thursday
Fed
Non-Fed
Regular
Hours
Friday
Fed
Non-Fed
Total
Hours
July 1-2
July 3-9
July 10-16
July 17-23
July 24-30
July 31
Totals
This represents a true and accurate record of time worked.
Codes:
I certify that the hours shown above reflect the actual time the employee worked for the Federally Funded Program indicated, and that the employee listed above
S = Sick Leave
was paid from the non-fedeal funds only for the hours indicated. Hours other than those spent in the Federally Funded Program were paid by other district funds.
P = Personal Leave Paid
H = Holiday
Signature of Employee:
Date:
Signature of Supervisor:
Date:
V = Vacation
X = Absent without leave
PD = Professional Development
Overtime Approval/Authorization Forms Must Be Attached To This Time
Sheet
Fed
Non-Fed
Overtime
Hours
Fed
Non-Fed
Finding:
Inadequate or Non Existent Records.
Fix:
If you have no asset records you must inventory all fixed assets and create a listing
of them.
Be sure to include all known data:
a. Date Purchased
b. Cost
c. Asset Tag Number
d. Location
e. Estimated Life
Once the asset listing is complete, you must maintain an annual recap of
additions and deletions.
Recommend that the local school board adopt a capitalization policy for asset
acquisitions.
Record lease/purchase in fixed asset records at the time of purchase.
Police report is needed for any stolen assets.
ABC School District
Fixed Assets
Analysis of Additions and Retirements
Audited Balance, June 30, 2002
10,000,000.00
Additions: (At Cost)
Total Additions for Fiscal Year Ended 6-30-03
(See Attached Detail Listing)
1,000,000.00
Retirements: (At Cost)
1982 Bus Number 6
1990 Computer Lab
Balance, June 30, 2003
(40,000.00)
(25,000.00)
10,935,000.00
Finding:
Bank accounts not reconciled.
Fix:
Adopt an accounting policy of having all district bank
accounts reconciled within 7 days of the end of the
month. This includes any activity fund accounts.
Finding:
Expenditures were made without proper documentation.
Fix:
1.
2.
3.
4.
5.
6.
Do not pay any invoices before item is received.
Use purchase orders and other means to insure that the items
purchased were authorized by the proper personnel.
Make sure that the amount paid agrees with the invoice.
Verify that the items invoiced were received.
Pay only on original invoices. No photocopies.
Record all expenditures in the period in which they were paid.
Finding:
Revenues were not properly receipted or accounted for.
Fix:
1.
2.
3.
4.
5.
Deposit all monies received on a timely basis. (Preferably
daily)
Receipt all monies as they are received by the district.
Record receipts in the period received.
In order to assist the auditor, record range of receipt
numbers on the deposit slip.
Instruct all sponsors to turn in activity funds promptly.
(Within one day is preferable)
Finding:
Travel expenses are not properly documented.
Fix:
1.
2.
3.
4.
5.
Document all travel and meeting expenses with original receipts.
Meal and motel tickets, detailing the expenditures by item, must be
maintained for inspection by the auditor. Credit card slips are not
adequate!
Travel expenses must be for school personnel and school related
activities only. No payments can be made for spouse or children.
Adopt a district policy on amounts that can be allowed for mileage
reimbursement and for meal reimbursement.
Try to avoid advancing cash for travel. You are much better off
reimbursing an employee.
Finding:
Bank accounts in excess of the FDIC insured limit were not collateralized.
Fix:
1.
2.
3.
4.
Instruct bank in writing that all monies deposited with their
institution must be collateralized by proper securities.
Review monthly bank reconciliations and verify that
collateralization amounts are adequate.
Be aware of any unusual transfers (ex: bond proceeds) that may be
wired to your bank. They will need to make arrangements to have
these amounts collateralized on the day received.
Deposit funds only in approved institutions. (Those with federal
insurance guarantees)
Finding:
Salary schedule and contracts did not reflect actual pay practices.
Fix:
1.
2.
3.
4.
5.
Pay according to salary schedule and contract amounts.
No salary advances.
Maintain accurate records on leave balances.
No “borrowing” from next years leave. (However, a district can
establish a leave bank that employees donate to)
Uncompensated leave must be deducted from the current year
contract.
1.
Maintain a file for all items on which bids were
taken and received. Retain proof of mailing,
faxing or email, response received from vendor,
and amount of bids.
2.
If you accept anything other than the low bid,
you should document the reason(s) that the low
bid was rejected. Have the board approve any
bid acceptance that is not the low bidder.
1.
Maintain a file on all lease items.
2.
Maintain a repayment schedule an all items that are
acquired through a lease/purchase agreement.
1.
Maintain adequate insurance coverage for
equipment, vehicles, buildings, etc.
2.
Maintain copy of each policy and binder.
3.
Maintain a copy of builders risk insurance for
projects under construction.
Adjust for any additional revenues received and/or
expenditures incurred after original budget is
complete.
 How to get rid of that irritating comment in the audit
that says:
 “The District had inadequate control over cash
transactions because of insufficient segregation of
duties due to a limited number of personnel.”
 Internal control comprises the plan of organization
and all of the coordinate methods and measures
adopted within a business to safeguard its assets,
check the accuracy and reliability of its accounting
data, promote operational efficiency, and encourage
adherence to prescribed managerial policies.
Separation of Duties
 Each transaction should require more than one person for
approval.
 Purchase Orders must be approved by someone other than
the person placing the order.
 Invoices must be approved by someone other than the
person responsible for writing the check.
 Divide a transaction into multiple steps from being
initiated until completion with different people approving
different steps.
Written Procedures
 Use a written accounting procedures handbook. (Green
Book)
 Make sure that all administration and staff are familiar with
the written accounting procedures handbook.
 Follow your written procedures.
 Any departure from the written procedures must be
approved by more than one person. (Approving persons
should not be party to the transaction)
Board Approved Policies
 Have the local board approve your accounting policies.
 One section of your board policies should address fiscal
procedures.
 Board policies should address minimum capitalization
amounts.
 Board policies should address amounts that require board
approval and amounts that the superintendent is allowed
to approve.
 1. Separation of Duties
 2. Written Procedures
 3. Board Approved Policies
 4. Adherence to Items 1-3.
“That old law about “an eye for an eye” leaves everybody
blind. The time is always right to do the right thing.”
Rev. Martin Luther King, Jr.
School business management is as complex an area to
work in as any profession I know. The variable and
complicated elements of human resources, changing
legislation, and technological society make our duties
challenging and sometimes overwhelming.
“Change is the law of life and those who look only to the
past or present are certain to miss the future.”
John F. Kennedy
GOOD LUCK
I HOPE I HAVE HELPED
ALWAYS REMEMBER THIS!
IT IS NEVER TOO LATE
TO HAVE A HAPPY CHILDHOOD