Proposals are being sought by the Mason County Board of Education to conduct an audit of the district’s finances for fiscal year 2012-2013, which runs July 1, 2012 to June 30, 2013.
A legal notice soliciting proposals was published March 27 in The Ledger Independent. The ad states the proposal deadline is 2 p.m., Wednesday, April 10.
Board of Education Chair Kirby Rosser said a new auditing firm is being solicited following the recommendation of Education Commissioner Terry Holliday. In a letter dated Nov. 8, 2012, Holliday advised board members that KDE was requiring a new audit firm conduct the current fiscal year audit. It was noted in Holliday’s letter the previous audit firm (Bertke and Sparks) had conducted the district’s audits since the 2003-2004 fiscal year.
Rosser said the audit will most definitely take a more in-depth look at the district’s financials, compared to more recent years and criteria for areas of review will be set for the new auditing firm at the upcoming April board meeting.
“Transparency is going to be very important,” Rosser said of the audit process. He also added it wouldn’t be a “blanket audit” and the state might even have suggestions on what items need to be more closely reviewed.
Board Vice Chair Vicky Lowe also said the board of education is adhering to Holliday’s recommendation that a new audit firm be hired. Lowe said local CPA Suzan Ross of Baldwin CPAs has been conducting an independent audit of district financials since December. As part of Ross’s audit, credit card charges for the period of July 1, 2012, through November 2012 are being reviewed. District credit cards were eliminated following a special examination of district finances by Auditor of Public Accounts Adam Edelen, released Oct. 24, 2012.
Lowe said having the new audit firm review those same charges “would be a wise choice” by the board of education, and she expects each board member will come to the interview table with a set of criteria.
In December, representatives of Bertke and Sparks attended a board of education meeting. They noted the firm’s past audits had always been a financial audit, not one focused upon fraud or internal controls. The board was also told after the release of Edelen’s report involving former Superintendent Tim Moore, it was noted in the 2011-2012 audit report that “internal controls were not being followed consistently,” and recommendations were given on correcting them and monitoring of financials (in terms of suspicious activity) fell to top administrators in relation to an annual questionnaire and that monitoring was “circumvented.”
The Bertke and Sparks audit cost the district $16,000.
The audit proposal document is available at the district’s Central Office, located behind the downtown Auditorium. Proposals are due by 2 p.m., Wednesday, April 10 and should be mailed to P.O. Box 130, Maysville, Ky. 41056. Questions can be addressed to Lisa Moreland, finance officer at 606-564-5563 or via email at lisa.moreland@mason.kyschools.us.
