NEVC R-1 School district gets clean audit

by Johannes Brann

On the evening prior to the last day of the fall 2024 semester, the Northeast Vernon County (NEVC) R-1 School Board approved final funding piece for new playground equipment at the Schell City elementary campus, learned of a sizable increase in the district’s property insurance premium, reviewed possible school calendars for the next school year, accepted early teacher resignations, and issued a reminder for school board candidates to file before the end of the month.

After an opening prayer, custom dictates the board reviews all expenditures and the minutes of the previous month’s meeting, asking questions for clarification. Once this was completed, the board approved those items and moved on to the big agenda item for the evening: careful review of two audits for the previous school year.

State law mandates each school district to have an independent professional audit of its finances on an annual basis and submit a copy thereof to the Missouri Department of Elementary and Secondary Education (MODESE). Failure to submit an audit for the previous school year by the following Dec. 31 results in the state withholding payment of state tuition funds until such time as the audit is completed and submitted. It has been three years since the R-1 School District met this deadline.

In a separate interview the day after the board meeting, R-1 District Superintendent, Christy Jones, said, “From what my predecessor, Mr. Holcomb told me, while there were no funds missing or misappropriated, they had a hard time getting everything with the books straightened out and so the district had to live off the property tax payment made in January until they could get the audit completed. And this happened two years in a row.”

Added Jones, “While it is December, we are going to make that state deadline for both our regular state and federal audits for 2023-2024 school year.”

Special federal funding to schools related to the closure of schools due to COVID-19 came in the form of three rounds of Elementary and Secondary School Emergency Relief (ESSER) funds. Anytime a school district spends over $750,000 of federal funds in a single school year, the district must hire a firm to perform a federal “Single Audit” of such receipts and expenditures.

Jones led the board’s page-by-page review of the almost 40-page document which, in separate sections, contained the respective audits.

“The board was glad when I said both audits had been completed, both were ‘clean’ audits.

In the regular audit’s section labelled “Findings” there was a note that the district’s bank accounts were under collateralized with Jones noting this is being immediately addressed. A second note cited the district’s failure to post the previous year’s audit, in a searchable format, on the districts website. Jones stated she would learn how to do this and get that done before next month’s meeting.

In the “Findings” section for the Single Audit, there was a note stating that when the district had roof repairs completed at the elementary school—a project completed with federal funds—the district was required to see that the contractor paid the federal prevailing wage; this check was not performed. No penalty was issued.

For the 23-24 school year, district assets amounted to $3.5 million; liabilities were just under $1 million for a net financial position of $2.59 million.

“The P.T.O. (Parent-Teacher Organization), the staff and Principal Rhodes have done an amazing job in raising almost $18,000 for new playground equipment,” said Jones.

Mr. Rhodes asked and the board agreed to fund the difference for the total cost of about $21,000. The new equipment will feature school colors and hopes are that it can be installed by next May.

Jones reported that due to increases in property values, building supplies and several claims by schools in the district’s insurance pool, next year’s premium for the district’s property insurance will go from $47,400 to $58,000.

Teachers had reviewed several possible calendars for the next school year and Jones presented them for the board to review with plans to select one at the January board meeting.

The board accepted resignations from several teachers at the elementary and high school buildings. Said Jones, “So far, we have nine possible positions to fill between the two schools.”

Jones put it that way because she hopes to consolidate some positions and so, for example, have a single art teacher as well as one counselor to serve the two campuses.

“We’re a small district and we’re carrying some long-term debt. And so with state minimum pay for teachers going up, we have to watch our spending and save every penny we can”, said Jones.

School board candidates must file their papers by the end of the day on Dec. 31. The seats currently held by Connie Gerster and David Bruce are up for election; both have declared their intention to run again.