Cedar Rapids school district on track with internal control tasks

A year has passed since a special report from the state auditor said that a former Cedar Rapids school district employee embezzled more than $500,000 from the district.

Tonight, district administrators shared a presentation with school board members showcasing the steps that have been taken to protect district finances.

“It's a culture,” said Steve Graham, the district's executive director of business services. “Anytime we hear of any concern … we will look at that and make sure we are doing our very best to tighten up controls.”

The district's accounting practices are in compliance with 55 of 56 recommended internal control tasks. The last task, a physical inventory of equipment, will be addressed when district offices move to the new administrative offices next year.

Graham stressed that the process is ongoing.

“We periodically review these tasks,” Graham said. “This is not static, this is dynamic.”

The report was the fourth, and final, quarterly report to school board members this school year. Board members had asked for quarterly updates in response to last year's report from the state auditor.

Since the state auditor's report was released, the district has restructured the accounting department to segregate duties, and both an internal auditor and an accounting supervisor were hired. There are monthly cash management training sessions, and the Activity Fund Accounting Manual is in the process of being reviewed and revised.

An electronic cash management training session, to serve as a refresher for previously trained staff members, also was created.

Superintendent Dave Benson said both the state auditor and district auditor has been favorable in their comments to the district's response to the report.

The presentation followed two public hearings, both of which center around land at Grant Wood Elementary School.

The City of Cedar Rapids wants to purchase 246 square feet of property along 26th Street S.E. in order to modify the sidewalk. The city will pay the purchase price of $1, plus attorney and publishing fees. The city also will restore all disturbed areas to original conditions.

No one spoke for or against the project during the public hearing. Board members approved selling the land and granted the city a temporary easement. Director Keith Westercamp emphasized that the project is beneficial for both the city and the school district.

“We're not trying to sell off land,” Westercamp said.

Board members also approved a resolution to hire Scott Olson, a registered architect and commercial real estate broker with Skogman Commercial Real Estate at the Penthouse, to be the district's representative in the disposition of district property damaged in the 2008 flood.

Olson's compensation, according to the consulting agreement, is $200 per hour. The total fee won't exceed 3 percent of the appraised value of the buildings damaged in the flood, including the former administrative building.