Audit questions Foulkes School District reimbursements after superintendents long-distance hospital visits, college trip

Legislative audit staff told the House Education Legislative Audit Committee that Foulkes School District had $3,655 in superintendent reimbursements that appear "constitutionally suspect" and violate district policy, and also reported $843 in unallowable child nutrition costs.

The finding, presented by Mister Fink of the legislative audit staff, said reimbursements included about $2,800 in mileage for trips that auditors questioned as "non-school" travel and $800 for airfare and travel insurance related to a college visit. The audit report recommended committee review; committee members questioned district leaders during the public hearing and then filed the report without objection.

Why it matters: The committee noted the tension between a superintendents humanitarian response to an injured student and the legal and policy limits on the use of public school funds. Auditors and members said the district must document legitimate school business purposes and follow district approval procedures so taxpayers and the public can see how funds were used.

What the audit found: Mister Fink said the audit team reviewed reimbursements and could not verify a legitimate school business purpose for the expenditures. The line items cited in the audit were:

- $3,655 total questioned reimbursements; auditors flagged approximately $2,800 as mileage reimbursements for trips that were not recorded as school travel and about $800 for airfare and travel insurance purchased in connection with a college visit. - $843 in child nutrition program costs that auditors said were unallowable because the salary payments should have been recorded in the districts general fund.

District response and context: Jim Bowie, identified himself as superintendent of Foulkes School District, told the committee he made many long trips to Arkansas Childrens Hospital to visit a student who had been severely injured in a traffic crash and was hospitalized for months. Bowie said the hospital was roughly 167 miles one-way and that he made about 16 trips to the hospital; audit staff later said they had counted 17 trips in their review.

Bowie told the committee he paid the students travel for a college visit out of his own pocket and requested reimbursement only for his superintendent airfare. He said the ticket booking included travel insurance that covered his airfare and the students fares; audit staff said district policy prohibits purchasing travel insurance from district funds for trips of this type.

Bridal Stout, identified as president of the Foulkes School District school board, said these trips were discussed informally among board members but were not placed as formal agenda items before the board; reimbursements appeared later in the district's general ledger and were approved after the fact. Audit staff said the districts financial approval practice is that the board reviews general ledger disbursements after the month closes and that ledgers provide only general descriptions of expenditures.

Committee concerns and follow-up: Members repeatedly praised Bowies actions on behalf of the student but urged clearer documentation and compliance with policy. Senator Sullivan and others said the audit showed the district had departed from established "guardrails" and urged the school board to tighten preauthorization and recordkeeping on travel. Audit staff cited the districts written policy that "school funds shall not be used for political, charitable, or humanitarian purposes" and a cited state statutory reference listed in the audit as "ACA 6 17 to 11" when explaining the legal basis for questioning reimbursements.

Outcome: After questions and discussion, committee members filed the Foulkes School District report without objection. Committee members asked auditors and the district to review and, if necessary, revise internal procedures so district reimbursements and uses of restricted funds (such as child nutrition) are supported by documentary business purpose and approved by the appropriate authorities.

What remains unclear: The audit could not determine that the travel reimbursements were routinely preauthorized; board members said they discussed trips informally and approved monthly disbursement packages after the fact. The audit and committee discussion indicated the travel in question was largely humanitarian in motive but that the districts written policy and state guidance require clearer documentation and, in some cases, may prohibit use of district funds for such expenses.

Next steps: The committee did not adopt new law at the hearing but suggested the district consider formal written travel and chaperone policies, and to review the superintendents contract provisions concerning travel reimbursement and preauthorization.