Kelly Marlow Wants To Discuss School District Audit — Again

Just three months after an auditor ruled the Cherokee County School District finances were in good shape, the school board member who originally raised questions about system's monetary practices wants to continue the debate.

District 1 school board member Kelly Marlow plans to introduce three agenda items to discuss in relation to the district's fiscal year 2011 audit during the April 17 regular meeting. 

Specifically, Marlow wants to discuss two findings noted on the 2011 audit: reconciling cash accounts and procurement and suspension and debarment, or a developing a process to require prospective vendors to confirm if they have been suspended or disbarred. 

She also wants to open the discussion on whether the board should conduct a public hearing for residents to review the fiscal year 2013 audit. 

The first two were findings auditors Mauldin & Jenkins listed in its fiscal year 2011 audit, which received an unqualified — or clean — opinion from the firm. They were carried over to the fiscal year 2012 audit year findings. 

Marlow cites a letter from the Georgia Department of Education's Financial Review Division on Jan. 14, 2013, which states the finding of reconciling cash accounts "should show resolution" in fiscal year 2012 and that the procurement process should be left up to the board to develop.  

However, Marlow said both issues were "ongoing concerns," as they have not been resolved. 

"Given the fact that two different audit firms have determined that this is a problem over consecutive years and the state board has directed this to be resolved by the board, a full understanding of the problem and a course of action to remedy the finding should be openly discussed among members of the board and professional staff," she added.

The fiscal year 2012 and 2013 audits were performed by Williamson & Co. Certified Public Accounting. 

The school district is countering Marlow's claims. 

In a written statement, district spokeswoman Barbara Jacoby notes those two findings could not be "reported as fully resolved until FY 2013 due to the timing of the audit process," which she said has been stated at board meetings, work sessions and a special meeting in which Mauldin & Jenkins came before the board in January to go over the 2011 audit. 

The annual audits are performed at the end of any given fiscal year during the following year. As a result, Jacoby said findings that have to be corrected at the start of a fiscal year cannot be reported as fully resolved until the following year. 

For example, a finding made during the fiscal year 2011 audit that was conducted during 2012 would not be reported as "fully resolved" until fiscal year 2013, Jacoby said. 

"The independent auditor currently completing the school district’s FY13 audit has stated that the two findings from the FY 2011 audit — which were carried over to the FY2012 audit as prior year audit findings — have been fully resolved, and that will be reflected in his final audit report for FY13," she added.

While weather delays and schools closings delayed the auditor from completing his work, the final report for 2013 could be available as soon as this month, Jacoby added. 

Once the district receives the final report, the auditor will make the presentation to the school board during a future meeting as an agenda item. The board will have the opportunity to discuss the agenda item, and the public will also be able to speak on the topic during the meeting, Jacoby said.