State audit: Lake Station schools lack oversight

A school official blamed state cutbacks that have reduced staffing so that many employees have to do multiple tasks.

The audit covered the period between July 1, 2012, to June 30, 2014, before the arrival of Superintendent Thomas Cripliver.

The State Board of Accounts said the school district didn't separate accounting procedures resulting in one employee handling cash, investments, receipts and disbursements. "There is no segregation of duties, nor is there adequate oversight," the audit said.

"This is a typical problem faced by all small school districts," said Cripliver, who replaced school chief Dan DeHaven last year after DeHaven retired. "We try to spread it around as much as we can…" he said of the accounting duties.

"We have taken the recommendations and implemented some of them," Cripliver said. For example, he said the district curtailed its multiple accounts at a grocery store and limited the access to employees.

The audit reported the lack of internal controls extends to the district's federal programs, including school lunch and textbook funds.

The audit cited deficiencies with the free and reduced lunch verification process. It said 18 percent of the verifications tested had income evidence suggesting the student should be moved from free lunch to a reduced fee lunch, but the changes weren't made.

Cripliver said controls are being implemented immediately to separate duties as much as possible due to the size of the district and budget constraints. A food service assistant has been hired to monitor daily deposits, purchases and to assist in the verification process.

He said eligibility and verification reports will be reviewed by someone other than the employee completing the reports. All equipment purchased and disposed of will be approved by the school board.

As for the district's Title 1 funding, the audit again cited a lack of internal controls and segregation of duties making it difficult to ensure that only Title 1 employees were paid from the federal grant.

Cripliver said the Title 1 director will approve all time sheets on biweekly basis and the director is now approving reimbursements before they are submitted.

In addition, the audit said attendance totals at two schools – Bailey Elementary and Edison Jr.-Sr. High were not properly certified.

The audit also found several credit card payments made to vendors that did not have detailed invoices attached. It also said 12 of 13 travel claims were not in compliance with the school board's travel policy. Two exceeded the $40 per day meal allowance; four claims were not approved by the proper authority and six travel claims weren't approved by anyone.

Cripliver said the district now has just one credit card and the school board approves all charges.

Lake Station sought a tax increase to be used for the schools from voters last month, but the referendum was soundly defeated. The measure would have added $7.5 million to the district's general operating fund over the next seven years.