KARNES CITY – The audit and budget workshops of late July for the Karnes City Independent School District (KCISD) brought some good news and some bad for the district.
The audit report for the district showed the finances of the KCISD to be in good shape, but the reporting and timeliness of some duties was lacking.
The audit was conducted by Cameron L. Gulley, CPA, from Eastland.
The report found an internal control over financial reporting to be lacking as there were inaccurate general ledger account balances.
“We are asking and have received help from Region 3 Service Center in reconciling the accounts,” said Superintendent Dr. Jeanette Winn Moczygemba.
Another area of concern was the district’s failure to submit an annual financial report in a timely manner. The report is due into the Texas Education Agency no later than Jan. 28 of each year. The KCISD report was not completed until July 2019.
The third area of major concern was the failure to make payroll tax deposits and file related payroll reports in a timely manner. This problem caused the district to pay penalties in the amount of $322,846 which were paid by the district in March 2019.
The audit report when on to explain that these mistakes, or timing problems, stemmed from a transition of business managers from a longtime employee to a new manager beginning the year under audit.
From the audit report itself, “The new manager did not have the requisite training to fully understand the accounting processes and their flow.”
That business manager has left the district’s employ and gone to work in the private sector, according to the superintendent.
“It was just as the audit report stated, she did not have sufficient training to handle the job. The auditor even mentioned that it usually takes three years of on-the-job experience to know the complicated educational financial accounting needs,” Moczygemba said.
The district was is in good enough shape financially to absorb the penalty and move on to fixing the other areas of concern.
The district’s new tax level evaluations is part of the good news in that final values put the tax roll at more than $1 billion more than the previous year.
The board of trustees, through a formula from TEA, has addressed this increase and will be giving all employees of the district a raise of 7 percent for the 2019-2020 school year. That is the second bit of good news for the district’s employees.
Editor’s note: Portions of this story came directly from the auditor’s report of the district provided by the district.