NV audit: More oversight needed

The 2019-20 audit provided suggestions for changes the Neelyville R-IV district should make, but was overall clean.

The Neelyville R-IV School Board reviewed a draft of the audit report Monday evening. Approval of the audit was tabled for the Dec. 17 meeting.

Auditor Dwayne Clark cited three areas for adjustment in the district’s finances.

Under Clark’s findings, he recommended the district look into management changes to allow for “adequate segregation of duties for internal control.” Auditors said no one individual should be involved in multiple phases of receiving, disbursing, processing or recording financial assets and transactions. The recommendation also recognizes the size and “budget constraints” of the district.

District administration agreed to look into it and consider areas of improvement regularly.

Clark also identified some inconsistencies with how payroll checks were classified.

According to the audit, this impacted 13 employees and caused incorrect deductions for social security, medicare taxes and retirement. Clark recommended the district implement a second review of these classifications in the payroll software

Changes to these procedures have been made, according to district officials.

Clark also recommended the district go back and make an amendment to the 2019-20 budget.

According to the audit, at the end of the year the district approved an amendment to the budget for it to reflect actual revenues and expenditures for the year.

However, Clark reported, “the resolution did not set forth the facts and reasons for making the increase in expenditure necessary.”

No action has been taken on this recommendation.

The district finished the year with a balance of $6,084,287.85 between its three funds.

School board members will review the findings of the audit before voting on it later this month.