A recently completed audit of the finances of the Clancy School District for the year ended June 30, 2016 found serious deficits in record keeping. The problems led to overstatement of the district’s net capital assets to state education officials, unverifiable amounts in student extracurricular activity funds, and an inadequate receipting process or supporting documentation for those funds, says the audit report by the accounting firm of Strom and Associates.
According to a response to the audit prepared by the district, changes are being made, or in most cases already have been made, to alleviate the problems. While the faults found by the audit sound serious, in some of the situations accurate figures were available within the district records but not transferred correctly to some required reports. For instance, the audit found the district overstated net capital assets in a Trustees’ Financial Summary, an annual report required to the State.
Before the report was submitted to the State, the district did not update it with changes in capital assets and depreciation, even though those figures were available in the district’s capital asset spreadsheet, said auditors. In addition, purchases in machinery and equipment were incorrectly added to buildings. That meant building, land and machinery and equipment depreciation in the trustees’ report was incorrect by $2457.
