March 28, 2024

CCSD tighten financial internal controls after audit findings

After a Creston Community School District audit was completed by Nolte, Cornman & Johnson P.C., certified public accountants, internal control deficiencies were presented by Billie Jo Greene, business manager for Creston Community School District (CCSD), to the CCSD Board of Directors during Monday’s regular meeting.

Greene said one of the deficiencies the district has addressed is the “segregation of duties,” which the auditors recommended.

According to the audit report, the district “has a limited number of employees and procedures have not been designed to adequately segregate duties or provide compensating controls through additional oversight of transactions and processes in the Student Activity Fund.”

“We [had] one person that [did] everything from start to finish,” said Greene.

Because of this, the auditors mentioned that inadequate segregation of duties could adversely affect the district’s ability to prevent, detect or correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions.

“So we broke that up in one area where someone else is taking that to the bank now,” said Green.

Greene said the more breaks in the process, the better.

“We always keep looking for ways to segregate duties so there are checks and balances,” said Greene.

Money collected at school activities is now counted at least twice by event staff, then by Claudia Peppers, activities secretary, and a separate person deposits the funds in the bank.

The regularly scheduled annual audit did not disclose any non-compliance or find any material weaknesses in the district’s internal controls over the major programs disclosed by the audit of the district’s financial statements.

Greene also said the district’s depository amounts – which were shared monthly with the board, but not previously recorded in the board’s meeting minutes – have now been recorded in the minutes as of September.

Additionally, to ensure proper controls are followed by district employees, Greene said district officials and employees have reviewed the purchase order process, and at the start of each month, “tidbits” on how district financial processes work are sent to staff and employees so everyone understands the financial processes from start to finish.

In other school board news:

• K-5 and 6-12 social studies instructors provided a Subject Area Committee report. Elementary Social Studies SAC is currently in its rewrite year to maintain compliance with Iowa Core.  This year, the social studies educators have attended two AEA trainings to help them understand new Iowa Core standards and how each grade level aligns with other grades. For 6-12, the district is in its final stages of realigning its standards for the new Iowa Core Social Studies standards that are scheduled to be fully implemented by school year 2020-21.

• board members Galen Zumbach and Don Gee vol unteered and were appointed to the district’s negotiation team.

• the board approved the 28E agreement for the school resource officer. This agreement, dated Jan. 21, by and between CCSD and the City of Creston, establishes a share and mutual desire to provide law enforcement and related services to the district to “help maintain a healthy and safe school environment which will promote public health, safety and welfare. The term of this agreement is to span July 2019 to June 2024.

• the board approved its meeting schedule: CCSD regular board meetings to be held 6 p.m. Feb. 18, March 25 and Apr. 15; public hearing on the STOP School Violence Grant bids will be held 6 p.m. Feb. 18; budget workshop to be held 5:30 p.m. March 4; and a public hearing for certified budget 2019-20 to be held Apr. 8.

• made a motion to waive a first reading and approved a second reading of Board Policy 729: Expenditures for Public Purposes.

• the board discussed if Ahlers Law Firm should review the board’s policies to ensure the board is in compliance with the state. The cost is estimated at $4,000. Dr. Brad James, board members, said the cost “seems expensive.” Zumbach asked if the review is necessary since the district is already in compliance. Greene said the recommendation comes via the Iowa School Board Association. No decision was made.

• Greene updated the board on the STOP School Violence Grant process, which helps speed up the process of the grant and provides a timeframe of activities leading to securing the grant and ensures the district and city officials are aware of their respective roles in the process.

• the board approved to hold a public hearing Feb. 18 for the review of bids for a shooter detection system, access control system and their installation, and to make a recommendation to Creston City Council.

• Callie Anderson, PK-K principal, provided a math screener data report, Scott Driskell, elementary principal provided a positive behavior intervention and support report, and Steve McDermott, superintendent, provided a construction projects update.

• McDermott provided the results of a 2019-20 school calendar survey.