Audit Committee reviews FY2024 audit findings, accepts fund-balance statement

The Audit Committee met to review the fiscal year 2024 audit and accepted the school system fund-balance statement after discussion of three audit findings.

The committee discussed three findings flagged in the FY2024 audit report: payments for building permits that were recorded on the day permit packets were picked up rather than the date payment was received (creating apparent violations of a three-day deposit requirement); repeated failures by the Water and Sewer Utility Department to properly issue purchase orders under county policy; and a cash overdraft in the school federal program fund of $21,006 on June 30, 2024. Committee members said each finding has a corrective action plan on file in the audit packet (referenced in the packet at pages 213 and 220).

Amy (staff member) read a prepared statement on behalf of the building-permits office describing prior practice. "Starting today with the future permit package, permit payment receipt will not be dated until the day the permit holder pays for the permit, which is what it should have been on the law," Amy said, describing the office's change to date receipts on payment rather than on packet completion.

Committee members pressed the Water and Sewer Utility representatives about repeated purchase-order weaknesses. Tony (Water and Sewer staff) said the utility is working with its board and staff to strengthen purchasing policies and to move away from handwritten records. The committee discussed a possible quarterly monitoring arrangement to confirm compliance; committee members asked that the utility provide periodic documentation that purchase-order procedures are being followed.

The committee also discussed the school system overdraft. The meeting record indicates the overdraft involved ESSER (Elementary and Secondary School Emergency Relief) funds that were requested in June for payroll to be paid in July. Dr. Satterfield (director of schools) was not present; the committee chair said the school system had already put corrective steps in place and that the overdraft was a first-time finding.

Committee members noted potential consequences from repeated audit findings. "Eventually, it will be. It affects our debt rating," the chair said when asked whether repeated findings could lead to sanctions.

On motions, the committee recorded two formal approvals: a motion to approve minutes from the November meeting (mover: not specified; second: Mr. Gregory) and a motion to accept the fund balances for school year 03/24 (mover: Mr. Gregory; second: Mr. Ford). Both motions carried with the committee indicating "all in favor." The committee did not record individual roll-call vote counts in the meeting text.

The meeting concluded after committee members reviewed remaining administrative items, including required trainings and conflict-of-interest filings for commissioners.