Year 2000 problem among other gaps cited in annual report to School Board

Monday, Nov. 2, 1998 | 11:10 a.m.

Some of the summarized findings and recommendations of the 1998 audit of the Clark County School District, conducted by accounting firm KPMG Peat Marwick:

-- The district's computers are not adequately prepared for the year 2000 problem. "Efforts are fragmented and there is limited management oversight," the audit said of the district's attempts to correct the problem.

District's response: Most of the mainframe computers, which store payroll, personnel and student data, are already protected. Many individual computers in schools are not. "We'll be in pretty good shape by then (2000)," the district's new chief technology officer, Phillip Brody, said.

-- During fiscal year 1997-98, the district did not transfer the money it had planned to transfer from the general fund to the school maintenance fund. The district needs to revise its schedule of transfers to the account.

District's response: School officials will revise the schedule. The district had only about $13 million of the $27 million planned for school maintenance, so the full $27 million was not transferred from the general fund to the maintenance fund. "The resources are committed for programs," said Walt Rulffes, chief financial officer for the district. "We just didn't have the funds to support a plan as rich as the one we had adopted."

-- The district now audits individual school budgets every 18 months, leaving little time for auditing other departments.

District's response: An "audit universe" -- a list of departments -- has been identified for more regular auditing. That auditing will begin soon.

-- The district still has "a general lack of coordination and communication between the different information systems groups." In other words, there is a wide variety of computer brands and systems. Also, computer-system security violations are not consistently reviewed, increasing "the risk that unauthorized users can gain access to district systems and can access, change or destroy sensitive information." Another problem: the district has an inadequate plan to recover quickly any computer data that might be lost in a disaster.

District's response: The district recently created a new position -- chief technology officer -- and hired Brody to fill it a few weeks ago. He will attack these issues.

-- The Internal Audit Department reports to senior management personnel of the district, not the budget and finance committee of the elected School Board.

District's response: The director of internal audit will present regular reports to the School Board's committee.

-- Money that students raise in fund-raisers is being mixed in the same bank account as money teachers and school staff members collect for staff parties and ceremonies. "The manner in which funds are used by staff and the perception of using commingled funds for staff activities may result in negative publicity for the district."

District's response: The district agrees and will develop a policy to handle teacher-raised funds.

-- Last year, auditors recommended that all grant money received by the district should be recorded in accounting records to ensure accountability for the funds.

District response: Procedures are now in place as recommended.