FISD School Board reviews presentation on financials

The Fulton Independent School Board met on Nov. 21, 2023, in the Fulton High School Library with all board members, Carol Bransford, Debbie Vaughn, Rea Jones, Christy Pettigrew and Austin Ferrell present, as well as Superintendent Jeff Rogers.

After the meeting was opened and the board approved minutes of last month’s meeting, the board approved the agenda for the meeting ahead.

The Advancing Student Achievement to Proficiency (ASAP) update was presented and the Family Resources Youth Services Center (FRYSC) report were approved.

According to FRYSC coordinator Tracy Pulley, the October activities included Red Ribbon Week from Oct. 23-27. Pulley’s report included Family Reading Night, sponsored by the Carr Elementary’s first-grade class on Oct. 26 was successful, with 53 in attendance; Oct. 28 was the Parent-Teacher Organization Fall Festival and approximately 200 people attended the event and raised around $2,300; and the Backpack Feeding program began on Oct. 13 and provides 111 FISD students with a bag of shelf-stable food to preschool students each Thursday and kindergarten to 12th grade on Fridays.

Purchase Area District Development (PADD) office supplied the boxes of bagged food, the Fulton County Detention Center delivered the boxes, Pete Zalucki brings in the boxes and Pulley counts and delivers the bags to student classrooms.

Pulley received permission forms from all sixth-grade families to bring Purchase District Health Department educator Tara Phillips to teach TOP (Teen Outreach Program), a healthy choice/social skill/goal-setting curriculum. This step is now mandatory because of Kentucky Senate Bill 150.

It was also reported that a field trip was approved for the sixth-grade students to Youth Thrive training in Paducah, with the Youth Thrive grant completely covering the bus driver and mileage for the trip.

Pulley said two of FHS teacher Brad Rozzell’s health classes were connected with “Catch My Breath” vape-prevention program with ASAP coordinator Kimberly Brann teaching those classes.

The board approved a fundraising request from the Fulton Middle School Junior Beta Club to sell “Hugs and Kisses Christmas” bags from Dec. 1-13, to pay for community service projects. The bags will be sold to students in 6-12th grades during school hours and forms will be sent home for the parents of students in Pre-K through fifth-grade students to buy the bags. All bags will be passed out before dismissal on Dec. 15.

A fundraising request to sell popcorn for the purchase of shoes, socks and apparel for the middle school and high school girls’ basketball teams received the go-ahead from the school board.

The school district recognized Amber Smith as its employee of the Month. Smith was a custodian at Fulton High School.

The Fulton Independent Teacher of the Month was Charity Holliman, a second-grade teacher at Carr Elementary School.

The Board of Education heard from Shad J. Allen, CPA, PLLC, of Richmond, Ky., via video conferencing regarding the Audited Financial Statements and Supplemental Schedules for the District’s year ended June 30, 2023.

The Auditor’s Report included management discussion and analysis, basic financial statements, required supplementary information, independent Auditor’s Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing standards, independent Auditor’s report on compliance for each major federal program and report on internal control over compliance required by the uniform guidance, schedule of findings and questioned costs; summary schedule of prior audit findings, corrective action plan and management letter.

As stated in the document presented to each school board member, the purpose of the audit report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. The report is an integral part of any audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance.

In the Schedule of Findings and Questioned Costs, year ended June 30, 2023, under summary of auditor’s results, two questions: “Were there significant deficiencies in internal control disclosed, and if so, was an significant deficiencies material” were asked, and answered “yes” by the auditor.

Regarding material weaknesses, finding 2023-001 states the district’s accounting department does not have a system of internal control over financial reporting that would allow it to prevent or detect and correct, in a timely manner, a significant misstatement in its financial statements, including footnote disclosures.

For property internal controls over financial reporting, there should be two people involved in all financial transactions, and inadequate controls are in place, the audit states.

It goes on to state the District did not have proper internal controls which cause the District’s financial assets to be at a greater risk for misappropriation.

Finding 2023-002 states the district is not currently complying with model procurements. Kentucky Revised Statutes require Kentucky School Districts to either comply with model procurement or bid law. Inadequate controls are in place and the district was in non-compliance.

Finding 2023-003 states an incorrect beginning balance for fiscal year 24 was budgeted. The Board of Education adopted an inaccurate budget and the budget was not appropriately monitored, which produced an incorrect beginning balance for FY 2024.

A Corrective Action Plan, listing the Kentucky Department of Education as the Oversight Agency stated the current Management Response to recommendations include the District will immediately agree to implement a properly designed system of internal controls in which at least two parties are involved in each financial transactions and will appropriately segregate financial duties; the District will appropriately follow Model Procurement procedures; and the District will update the budget frequently to review budgeted amounts compared to actual amounts, and will update balances based on auditor guidance.

Further, a recommendation for correction was included within the audit, regarding purchase orders not being issued for purchases made. The recommendation for correction was to make sure the person requesting to make a purchase or expend activity funds will prepare a Purchase Request/Order and have it approved by the sponsor and principal. After proper approval, a Purchase Order number shall be issued or an EPES Purchase Order generated so the expenditure can be purchased or ordered. (See related story, page 1, AUDIT)

The proposal for the 2024-25 school calendar was presented for its first reading by FISD calendar committee head Kent Green. The proposed calendar included 174 student days and 185 teacher days.

Teachers are to return for professional development on Aug. 6 and the first day for students would be Tuesday, Aug. 13. The proposed calendar includes Fall Break from Oct. 7-11, Christmas Break from Dec. 23-Jan. 3, 2025. Spring Break will be April 7-11, with the last day for students set on May 22.

Board member Debbie Vaughn asked Green to confirm the proposed two-week Christmas Break.

Green explained that the way the days fall on the calendar would have the first day back fall on a Thursday or Friday, so the committee opted to move the return date to the first Monday, on Jan. 6. The board agreed and passed the first reading of the calendar.

Each year, the elevator at Carr Elementary School must be tested for safety.

DC Elevator submitted an estimate of $398 for the tests, but understanding that these tests will include more strain than usual and any injury or damage inflicted during testing would not be the responsibility of DC Elevator. The board agreed with the contract and approved DC Elevator to test the elevator.

Finally, the board heard from FISD Finance Officer Chris Moore that outside of the audit concerns, the financial reports and orders of the treasurer for the school district were on point and not remarkable.

Rogers advised the board to accept the financial documents as written and they voted to do so.

After the vote to approve the financial reports, the board adjourned from open public session into closed Executive Session for discussion of student discipline.