Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Findings topic
No spam. Unsubscribe anytime.
Audit flags repeated segregation-of-duties finding and payroll compliance concerns; district to stop nonstandard coach stipends
Summary
Auditors reiterated a longstanding segregation-of-duties comment common to small districts and flagged payroll compliance issues involving classified staff coaching stipends; the district said it has corrected payroll entries and will discontinue gift-card stipend practices while awaiting clarification on rules for paras coaching.
District administration reviewed the most recent audit findings with trustees, describing two issues trustees should note.
First, auditors again included a segregation-of-duties finding tied to the limited size of the district’s business office. Administration emphasized this is a routine comment the auditing firm makes for small Montana school districts and that the finding is not a fraud determination: "this is not ... a finding of fraud in any way," the presenter said. The district noted it has taken steps such as adding an assistant business manager but that the comment persists across similar-sized entities.
Second, auditors raised payroll compliance questions after the district used classified staff in certain coaching roles and, in some cases, nonstandard stipend practices (including gift cards) to compensate those duties. Administration said the district will discontinue gift-card payments, has reprocessed those amounts through payroll to clean up records, and will await legal clarity from state authorities and counsel about whether paras may receive coaching stipends without creating overtime or payroll conflicts. Trustees discussed potential program impacts and were told that if certified staff or community members are not available to coach, some offerings could be reduced or cut; administration said it would follow legal guidance and internal corrective action recommendations from the auditors.
Administration also noted the district had submitted corrective action to the state audit division and will continue monthly budget committee reviews and transparency measures to mitigate risk.
