Even after two years, the loss of $145,000 still resonates today for Deming Public Schools.
The board of education had Alan “Aj” Bowers, an audit partner for Carr Riggs and Ingram audit firm, share highlights from the fiscal year 2018 audit report during a regular session on Thursday. The action item presentation didn’t go without acknowledging current improvements in retrospect to the financial bruise left under former DPS Superintendent Dan Lere's administration.
"One of the things that I really wanted to point out was the changes from 2017 to 2018," Bowers said. "So, this is a testament to the hard work of the district, the finance team, the dedication of the board to allow the resources that they need to be able to clean up some of the challenges that the district has had year over year.
"When I look at the district highlights, financial statement material weakness findings decreased from three to zero from year over year. Not only in the number of findings, but when you talk about severity, the term material weakness under accounting standards is a finding that basically says if something were to go wrong here, it can materially affect the operations of the district, it can affect the opinions – so, it merits the attention of the governing body. So, that's a good thing to go from three to zero. You should be proud of that.
"The next level is significant deficiencies went from two to one. The definition of a significant deficiency is it does not rise to level of material weakness yet still merits the attention of the governing body. So, not only did you get rid of material weaknesses, but the significant deficiencies as well.
"Federal Award findings – we did increase from two to four so, we audited different programs, we looked at different things every year so, that is something to pay attention to.
"And the New Mexico Audit Rule – they require to report everything and they went from 11 to five.
"So, you cleaned up a lot of findings, you cleaned up the severity of the findings, so I think the district should be proud of the work that they've done.
"The charter school (Cesar Chavez Charter High School) had significant deficiencies decrease from one to zero and then the state audit rule, they went to five to four."
“I think you that have accomplished a lot – still some work to do, but you guys are on the right track,” Bowers said to the board.
"For one person who was on the board when we had to do the audit a couple of years ago, it was... ehh, I don’t want to even go there," DPS Board President Bayne Anderson said. "This has so much improved from what we had a few years ago,”
Approximately two years ago, a special audit prepared by the Jaramillo Accounting Group for the State Auditor’s office, presented details of possible fraud and embezzlement by Beatrice Armendariz, a former Deming High School head secretary.
According to the special audit, Armendariz has allegedly used a district p-card for personal gain from July 2012 through June of 2016. The executive summary mentioned that former Superintendent Dan Lere reported $20,000 in possibly embezzled funds to the Deming Police Department in August of 2016. But the state auditor's office had subsequently determined as much as $145,000 may have been stolen.
Armendariz reportedly left her position for another job in August of 2016.
No court cases have been filed. The Deming Headlight has made several unsuccessful attempts to reach Sixth Judicial District Prosecutor Francesca Estevez for any updates on actions the DA's office may take.
Back in August, DPS received a check for $130,000 from the New Mexico Public Schools Insurance Authority to help account for the $145,000 that was allegedly stolen.
The district did not set motion to approve the presentation in order to allow board members to revise the final audit report.
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