$13k tax fine among items noted in Board of Ed. audit

Published 5:09 pm Friday, July 1, 2016

A penalty of $13,281.08 paid to the IRS for failure to remit payroll taxes by deadline was among the items noted in an audit of the Chilton County Board of Education for Fiscal Year 2014-15.

A summary of the audit was given at the June 28 Board meeting, and a copy of the audit is available at examiners.alabama.gov.

Findings noted in the audit include the Board’s failure to remit payroll taxes in a timely manner, ensure compliance with the Alabama Open Meetings Act, retain proper bid documentation, report all wages paid to employee on a Form W-2, comply with advertising requirements for public works.

More information about the findings, as taken from the audit report, are below:

•The payroll tax issue was for the Dec. 31, 2014, payroll.

•Several financial transactions were found that were not recorded in the official minutes of the Board, and not always signed by the appropriate officials.

•The Board did not provide adequate documentation of solicitation of bids for the purchase of six motor vehicles, and failed to retain the bid information for the purchase of seven school buses.

•The Board paid a bus driver $9,995 for maintenance work through accounts payable rather than through payroll, so the amount paid to the employee was not reported to the IRS.

•A public works contract totaling $829,600 was let without advertising at least once in three newspapers of general circulation throughout the state.

Below are summaries of the Board’s response to the findings, in the same order as above:

•Action has already been taken by the assistant CSFO in the training of the new payroll bookkeeper on the timing of the payroll taxes and when they are to be remitted. The Central Office has moved the payroll posted date up two days to ensure taxes are paid on time.

•Action has already been taken by the assistant CSFO to ensure all financial statements are included in the packet presented to Board members. The superintendent is also ensuring all officials are signing the minutes in accordance to policy and procedure to be in compliance with guidelines.

•The CSFO and assistant CSFO will begin working with the local school bookkeepers and principals to ensure the correct protocol is being followed in keeping a record of all expenditures and to address the issues listed from the local schools that were tested.

•Action has already been taken by the assistant CSFO to ensure all Board employees are being paid through payroll. No board employee will be paid from accounts payable with exception to reimbursements for approved expenses.

•Action has already been taken by superintendent, CSFO, assistant CSFO and maintenance supervisor to ensure bids in excess of $50,000 will be advertised in three publications in the state as well as the two local publications, and copies of advertisement will be kept in each bid folder. The maintenance bookkeeper will oversee each file, but the Central Office will also monitor each bid.