Board reviews proposed $115,000 audit engagement and hears district finance updates; software pilot identifies recoverable state funding
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Summary
Catoosa County finance leaders proposed a one-time, not-to-exceed $115,000 engagement with Cherry Beckhart to perform a combined performance and internal audit covering the past five years; staff warned of additional internal costs and emphasized the workload the review will require.
District finance leaders asked the Catoosa County Board of Education on Nov. 4 to approve a service agreement with Cherry Beckhart to perform a combined performance and internal financial audit, risk assessment and internal-audit review of recent years’ operations.
Director Carter described the scope as a performance audit (efficiency, effectiveness and economy) and an internal-audit review (controls, compliance and financial disclosures). "This agreement includes a total not to exceed fee of $115,000 for this year," Carter said.
An audit-selection participant explained the selection process and negotiations: three firms were considered, one firm withdrew and another presented a potential conflict because it had prepared the district’s financial statements. The participant said Cherry Beckhart’s price was negotiated down to $115,000 after initial higher bids.
Board members raised concerns about cost and duration. One member asked whether the $115,000 would be paid each year for five years; the presenters clarified that the $115,000 fee is a one-time payment to cover work reviewing the past five years, not a recurring annual payment. District staff also estimated additional in-kind and internal costs—staff time, printing and support—could be on the order of $150,000 in sunk costs to provide documentation and respond to auditors.
The board also heard a state-reporting team presentation on a pilot of the Usha reporting package that integrates Infinite Campus and Go IEP data. Staff said the software flagged scheduling and IEP-schedule discrepancies that likely led to missed funding; districtwide rescheduling opportunities were estimated at about $155,000 and one school’s cleanup recovered $23,448 in special-education funding.
The financial task force update compared Catoosa County with larger districts (including Fulton County) and discussed pressures from the state’s QBE (Quality Basic Education) formula, rising special-education costs and large increases in local tax exemptions that affect local fair-share calculations. Director Carter provided September fund statements, noting general-fund receipts of roughly $11.0 million and expenditures of roughly $18.0 million and that the district was using a short-term line of credit until local funds arrive.
Superintendent Nicks recommended approval of consent-agenda items (H1–H5) and the board recorded a motion and second; the meeting transcript shows discussion of item H6 (the Cherry Beckhart engagement) and a recommendation but does not record a final vote or tally in the provided transcript. Board members indicated an executive session was needed before final action. The board left the matter under consideration at adjournment.
Next steps noted in the meeting: staff will continue to work with the auditors to finalize scope and schedules, and district directors will provide documentation and support for the audit process if the board approves the engagement.
