Board of Education calls for budget audit
ST. JOSEPH, Mo. (News-Press NOW) -- Board of Education President LaTonya Williams has asked the board to consider an outside financial audit.
With changes in the administration for the new fiscal year, including a new superintendent and a new assistant superintendent of business and finance, Williams said new estimates and adjustments in SJSD's new fiscal budget have raised questions since its approval in June.
Since the budget approval, the BOE has had difficulty answering any questions.
“For whatever reason, there were issues that arose we were unaware of,” Williams said. “So, the call for an audit is not about accusations or blame, just for clarification.”
This issue was discussed in the Monday, Aug. 11 Board of Education meeting.
New Assistant Superintendent of Business and Finance, Robert Hedgecorth, used an updated budget tracking system to explain why questions have arisen in the last two months.
The new software takes into consideration more elements, including changes in enrollment and state funding in more detail. Hedgecorth then advised the board they must choose between a full state audit, in addition to the audit already paid for each year by the board, which is set for September through December by an outside firm.
“A state audit would look beyond finances and at procedures,” Hedgecorth said. “This is more time-consuming and may be more than the board has in mind.”
After more discussion, the board decided to pursue the option of an outside party that would concentrate on the finances and best practices for budgeting.
“I told the board I would ask the finance director from the Missouri School Board Association,” Hedgecorth said. “She is a former CFO and has experience in working with boards about finances and planning.”
Both Hedgecorth and the BOE agreed that this plan would be ideal for focusing on questions and for establishing practices that would save time and make the best use of resources for the future.
Hedgecorth said changes early on and mid-year are not uncommon, because some of the largest factors in regard to income are unknown until after summer. These include final student enrollment numbers and the amount of state funds the district will receive.
“You are presenting a preliminary budget in June, so there are a lot of things you don’t know,” Hedgecorth said. “So, you are estimating at that time.”
Hedgecorth emphasized that the best way to address a concern or issue is to name it.
BOE members have brought questions forward about the process and the numbers associated with the budget, even advocating for a third set of eyes to be brought in.
Hedgecorth stated, he hasn't had confirmation about the availability of an auditor, but would have more answers to present at the next BOE meeting on Monday, Aug. 25.
