Tarkanian upset over audit report

Art Nadler

Friday, Oct. 24, 1997 | 10:47 a.m.

The annual independent audit report of the school district budget has caused one School Board member to see red.

Lois Tarkanian took offense to accounting firm KPMG Peat Marwick's reference to a "board member" who requested foundation grant money without approval from the whole board.

"In my almost nine years on the board, I cannot recall seeing direct reference to school officials (in audits)," an angry Tarkanian said at Thursday night's School Board meeting. "My understanding is that the purpose of this audit was to concentrate on processes, rather than on individuals."

Tarkanian said she approached the Lincy Foundation for a "contribution" for elementary and secondary reading. She said she never asked the organization for a grant.

"It seems unusual, in the midst of sensitive litigation involving the district and board members, that auditors would make such an unusual statement in the report without any contact whatsoever with the individual to whom reference is made."

Tarkanian asked Michael Flaa, a partner with Peat Marwick, who had brought this item to the firm's attention. Flaa replied that he couldn't recall. He also said his accounting firm tried to reach her for comment, but was unsuccessful.

"I believe there is continued pressure on me to pick me apart and hold me to a higher standard," Tarkanian said after the Thursday night board meeting. "They are trying to show that there was something wrong done with the money.

"I never saw the check (for a little less than $1 million) from the Lincy Foundation. I never held the check. I did not know how the check was made out..."

When asked by Superintendent Brian Cram what to do with the substantial check, Tarkanian said she told him to put it into the Public Education Foundation, the fund-raising arm of the school district.

"I believe people should be accountable for accurate information," Tarkanian said. "I believe you slant things when you don't have accurate information."

Tarkanian asked that the board strike the reference to a board member from the report and that the wording be changed from grant to contribution.

The board voted to approve the audit with the changes.