Audits and Bank Accounts

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There is currently an accusation that there is a "hidden" bank account.  The account is actually called a sweep account, which is used to increase the amount on interest gained and to keep funds insured in case of a bank collapse.  It is even referenced in the latest (June 2022) required independent audit on page 32.

 "A summary of the total insured and collateralized bank balances at June 30, 2022 is as follows: Insured by FDIC $ 250,000 Additional FDIC through local bank sweep account 2,234,749 Uninsured bank balances 182,819 Total bank balances $ 2,667,568" PG 32

A sweep account moves money into an insured bank account at the close of the business day. This account offers a higher interest rate that does a regular checking account. If also allows for money above $250,000 to be insured by the Federal Government. Checking accounts only offer insurance up to $250,000. 

The school financial officers were protecting the money and were earning the maximum amount of interest possible by using the sweep account. 

WBCSD was acting in a financially conservative and responsible way by creating this sweep account. To do otherwise, would have been a dereliction of duty.

Read what Debra Buttrey, former financial officer for WBCSD for 20 years,  has to say HERE.

Finding 1: Questioned Costs No known questioned costs were identified during the course of the audit. Pg 83

Finding 2: The District’s staff is too small to allow a complete segregation of duties, and adequate oversight and review of the various financial reporting requirements.  Pg 78

This condition continues to exist as of June 30, 2022. See Finding 2022-001.  Pg 84

Board's Response: Management believes that the District has minimized the risk to the degree possible, given the size of the District, the limited number of office staff, and associated costs or other considerations. In order to mitigate the risk of fraud or errors in financial reporting, the Board of Trustees reviews the financial statements for unusual fluctuations and significant variances from budget at each meeting. 

In addition, all checks require two signatures, and the Board of Trustees approves all checks issued by the District. PG 78

The board knew about the office being improperly staffed, and under Keith and Susan's leadership, did nothing in the time they have been there about it.

Finding 3: While there is no evidence that the District submitted requests for ineligible expenditures, it is apparent that the District did not submit for grant funds that they would have been entitled to had the submissions been completed timely.  PG 81

The District lost money because the office was not properly staffed. 

We realize there are rumors of $5M dollars having been found.  While we question this since the first phase of the audit has not been formally presented and is likely coming from people who aren't able to be honest about their background checks, we are asking Paul and Ann to ask one of the board members if they have been given any info to substantiate the $5M claim or any of the other rumors, we will keep you updated if we learn anything.