Friday, Jan. 27, 2012

Los Banos School district eyes new auditors

Firms looking at financials changed from time to time

The Los Banos Unified School District is expected to consider changing auditing firms next month.

"We're at the point where we've been with M. Green for three years now. We need to consider renewal of contract or make the decision to change firms," School board Trustee Andree Soares said. "The reason would be to just have a fresh set of eyes on our practices."

It is common practice for school districts and local governments to change auditing firms every three to four years. M. Green and Company LLP has worked with the district since 2009 and recently released its audit report on the district's finances for fiscal year 2010-11.

The report gives the district the highest level assurance that its audited financial statements are accurate, company representative Ken White said.

However, the district does have issues the company suggested fixing. Two of the district's board members did not file the proper forms with the Fair Political Practices Commission indicating their financial interests. The report also states that five of the 11 forms on file were incomplete.

Student body fundraisers and events continue to be where auditors find mistakes are being made.

The report states that Los Banos Junior High held an event in which the amount of revenue was unable to be confirmed because pages were torn out of the receipt book. Also one invoice was missing from Los Banos High and no invoices could be found for San Luis High.

Sporting events were not immune, either.

"We had one problem we thought was fairly important," said Lynn Anderson, who assisted with the audit. "We tested the football games at both sites. The person running the football game, instead of depositing all the money that was made, withheld $1,200 for the following football game. You can't do that."

Anderson said her firm has found similar issues with financial record keeping at student body fundraisers and events in the past. She said her firm is willing to keep pointing out the mistakes year after year until they are corrected.

Soares said sometimes mistakes happen.

"I probably messed a few of them up myself. I volunteered myself at a football game and I was screwed up in the first five minutes," Soares said.

Superintendent Steve Tietjen said audits almost always find something wrong with student body practices. He said he would be worried if an audit came back and no mistakes were found.

The report states that the district did not follow its own policy of requiring a reason for children to be released early from its afterschool program. On the day the procedure was monitored, 12 of the 94 students in the program left early without giving a reason that complies with district policy.

The district spent $10.9 million in federal money this year. The audit declares the funds were spent in a proper manner.

Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com.