District finances receive a clean review
By Phyllis Moore
Published in News on January 28, 2015 1:46 PM
The Wayne County Board of Education received a clean audit report for the past year on Tuesday at a work session called to better inform the full board about goings on in the district.
The board also heard presentations on the merits of introducing direct deposit for all employees and announced the search for a new superintendent has been extended.
Board members had expressed concerns about the need for full-board discussions on important topics in lieu of having them handled by committees. Board member Dr. Dwight Cannon was the only absentee, as he also lives in New Jersey, where he pastors a church. He telephoned before the board went into closed session and asked to Skype in for the proceedings.
Board vice chairman Arnold Flowers said since he had joined the board five years ago, he has favored having everyone included in discussions.
"I decided when I came on the finance committee we would do these audits (publicly)," he said. "Now as chairman of the finance committee, I requested it go to the full board at least a month ahead, like we have for the policies, a first reading. I don't feel like anybody could get it and do something other than rubber stamp it.
"We looked at it in finance committee and decided to send it to the full board. The way we have done it in the past is we have brought it as a committee and voted on it."
Representatives from Carr Riggs and Ingram, the accounting firm that annually handles the district audit, were on hand to discuss and respond to questions about the financial report for the previous year, which ended June 30.
When they reviewed the school system's current and fixed assets and liabilities, Michael Jordan and lead auditor Penny Lanier announced there were "no findings" that produced concerns.
"Our report was prepared in accordance to auditing standards," Jordan said. "No issues were flagged. Everything we asked for, we received. There were no potential risks or exposures noted."
One issue raised by Mrs. Lanier, which the school board had previously discussed as well, was the increase in unpaid student lunch bills over the past four years. She said she noticed a trend change -- in 2010, the tab for the district was $20,000, rising to $40,000 the next year, then $80,000. This past year, it climbed to $179,000, she said.
"Our suggestion is the implementation to either limit charges or find an avenue to collect those charges. Since they are not required to pay them back, they keep charging," she said, referencing changes made by the USDA "wiping clean" the child nutrition books at the end of each year.
Board member Jennifer Strickland said she discovered a policy allowing principals to create applications for free or reduced lunches if parents or guardians do not fill out the paperwork.
"I'm finding that principals don't know that they have that authority," she said. "Maybe we should give this policy to principals, let them know that they have a little bit more power, so that we can be reimbursed."
With two new schools being constructed, resulting in additional cafeterias and other expenditures, board member Pat Burden suggested the board consider looking into programs that could expand the free and reduced reimbursements at additional schools.
Also on the agenda was the idea of going paperless and introducing direct deposit for all district employees. The district's finance officer, Beverly Boltinhouse, said it would cost $4,500 a year for the program required to implement that.
New hires are already being required to sign up for the option, she said, and a number of employees are also going that route.
Board member Rick Pridgen asked how many of the district's estimated 3,200 employees are currently getting a paycheck.
"700," replied Mrs. Boltinhouse.
Board chairman Chris West asked if training would be provided for those who are not computer savvy, and Mrs. Boltinhouse said it could be.
Board member Pat Burden noted that in the future, employees will not have a choice, since retirement checks and Social Security already use the direct deposit method.
Going paperless could save the district approximately 40 hours a month in staff time and $1,200 a year in costs, Mrs. Boltinhouse said.
But will it be worth the risks of computer hacking and the like, Cannon asked.
"We're making a decision in my opinion for someone's personal finances and really giving them no option," West said. "We need to save everything we can but is the savings worth the security risk or the other things that come with it?"
Flowers said he felt direct deposit would be safer than issuing a live check.
Pridgen suggested phasing in the option, after first educating staff.
Flowers revisited a topic he had raised at a previous board meeting, about the merits of redrawing school district lines.
"I have not had any conversations with board members or the superintendent," he said. "I think that's something that we have to do. With two new schools coming online how are they going to affect other schools?
"I'm requesting that sometime in the future, that we have work sessions about (that)."
West said he also wanted to give the public a status report on the search for a new superintendent. Dr. Sandra McCullen is currently serving as interim until June 30.
"We decided to extend the period of time that we're taking applications, to Feb. 28," he said. "We currently have several applications. Once the date is closed on the 28th, we will move forward on the selection process.
"We initially decided on 60 days (which would be the end of January), but decided to extend the period."