Four area schools pass state audits
Published 8:51 am Monday, April 2, 2018
Ironton, Dawson-Bryant get state auditor’s award
Four Lawrence County schools, Ironton City School District, Dawson-Bryant Local Schools, Fairland Local School District and Chesapeake Union Exempted Village School, underwent audits by the State Auditors office for the 2017 fiscal year.
After an extensive analysis, all of the schools were found to in compliance with that could materially affect their major federal programs.
Only one school, Chesapeake, had a finding.
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The school system had switched to City National Bank in September 2016 to hold their deposits. The bank failed to issue a surety bond.
“At year end, of the total bank deposits of $5,176,441, $4,375,351 were unsecured,” the audit noted, adding it meant that there was a risk of them being lost.
“We recommend the School District review all financial institution deposit balances and ensure there is proper and adequate pledged or pooled collateral in place,” the report continued.
The audit noted that the issue was corrected.
“When this was brought to the School District’s attention and the bank was questioned, the bank agreed, in writing, that they would have been obligated to accept the responsibility of covering 100 percent of the School District’s balances,” the audit noted.
Ironton and Dawson-Bryant schools received awards an Auditor of State Award, which is presented to local governments and school districts upon the completion of a “clean” audit report.
To get the award the schools had to file timely financial reports with the Auditor of State’s office in accordance with Generally Accepted Accounting Principles; the audit report does not contain any findings for recovery, material citations, material weaknesses, significant deficiencies, and no other financial or other concerns exist that involve eligible entity.