Franklinton, Louisiana

October 9, 2014

6:30 p.m.

The Washington Parish School Board met in regular session on the above date with the following members present: Dan Slocum, John Wyble, Bruce Brown, John Breland, Alan McCain, Matthew Tate, Dewitt Perry and Lesley McKinley. Absent: Mary Adams.

Agenda Item #1 - Call to order

The meeting was called to order by President Matthew Tate.

Agenda Item #2 – Invocation

The invocation was given by Lesley McKinley.

Agenda Item #3 – Pledge of Allegiance

Agenda Item #4 – Discuss and take appropriate action regarding Independent Accountant’s Report on Applying Agreed Upon Procedures – Franklinton Jr. High School and Wesley Ray Elementary School - Minda B. Raybourn, CPA, LLC (Beth Keaton).

Minda B. Raybourn, CPA gave the audit reports on Monday night on Franklinton Jr. High School and Wesley Ray Elementary School as follows:

WASHINGTON PARISH SCHOOL BOARD

INDEPENDENT ACCOUNTANT’S REPORT ON

AGREED-UPON PROCEDURES

FOR

FRANKLINTON JUNIOR HIGH SCHOOL

FRANKLINTON, LOUISIANA

AS OF AND FOR THE PERIOD

July 1, 2013 through June 30, 2014

Minda B. Raybourn

Certified Public Accountant

Limited Liability Company

820 11^th Avenue

Franklinton, Louisiana 70438

(985) 839-4413

Fax (985) 839-4402

WASHINGTON PARISH SCHOOL BOARD

INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED-UPON PROCEDURES

Washington Parish School Board

Franklinton, LA

I have performed the procedures listed below, which were agreed upon by the Washington Parish School Board and Superintendent. These procedures were performed solely to assist the school board management with respect to compliance with policy and procedures concerning individual school activity accounts and school property inventory at Franklinton Junior High School for the year ended June 30, 2014. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, I make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

I tested inventory records to determine the physical existence of property as listed on the school’s property inventory report and to determine that property at the school was included on the inventory list. I also inspected property items to determine if they were identified as property of the school and numbered in accordance with the property inventory list. I examined the records for the school’s activity accounts. Three months of bank reconciliations were tested for completeness and mathematical accuracy. Disbursements were tested for proper use of requisitions, purchase orders and supporting documentation in relation to the school board policies and procedures. I tested bank deposits against pre-numbered receipts for propriety and traced them to the activity account ledger. I calculated gross profit percentages on concession sales and performed reasonableness test on other receipt categories where applicable.

Bank reconciliation - Each month tested was mathematically correct, all reconciling items were proper and the reconciled balance equaled the activity account ledger. Beginning and ending balances were traced to prior and subsequent year balances to verify proper cutoffs with transactions recorded in the proper period and balances carried forward properly. There were no exceptions to school board policy concerning bank reconciliation procedures in the months I tested. The beginning bank balance at July 1, 2013 was $127,793, and the balance at June 30, 2014 was $125,562, resulting in a net decrease of $2,231 for the year ended.

Cash disbursements – I tested 30 tested disbursements for the school year ended 6/30/14. School board policy requires that a properly executed requisition and purchase order be issued prior to the purchase or order of goods and services. One disbursement had an invoice that was dated prior to the requisition. All other items tested complied with school board policy. Supporting documents were properly signed indicating approval to purchase, pay, and receipt of the item by the school. The documentation of transfers between activity accounts was found to be excellent. All invoices were paid on a current basis, and the disbursement records were neat and orderly allowing the verification process to be accomplished in an efficient manner.

Cash receipts – A total of 20 items were examined. The receipts tested were balanced to the daily recap and traced to the appropriate account in the activity ledger. Deposit tickets were complete and agreed with the daily report. Of the 20 items tested, 2 items (10%) did not have the report attached listing the receipts that make up the deposit.

Ticket reconciliation forms were utilized for the athletic events. My examination of the athletic funds did indicate a proper accounting for gate receipts and ticket inventory for the events supported by ticket reconciliation forms. The ticket reconciliation forms had the required number of signatures. I also examined the accounting for the startup money for the events. The accounting for the startup money appeared to be in order. Deposits for athletic events were deposited timely at the bank, after the event.

Fundraisers -

1) Pictures-School pictures are done by Bert Burr. Commissions paid by Bert Burr for the year were $1,748. The funds posted to the yearbook account.

2) Book Fair-Franklinton Junior High held two book fairs during the school year. The book fair held during October 2013 netted the school $1,249 that went toward Scholastic Dollars which were good for purchase of Scholastic Book items. The second book fair held during March 2014, netted the school $1,233. These funds were deposited into the Library fund.

3) Cookie Dough-Franklinton Junior held a fundraiser to sell cookie dough to benefit the student incentives account. The total net profit was $12,430 (40%).

Concessions- All concessions from the school, football, and basketball are recorded into one concessions account. During the school year, Franklinton Junior High had two home football games and nine different home basketball games including jamboree. . Together, the concessions made a profit of $13,158 (34%). Funds raised through the concession sales were transferred to the general fund. All invoices for concession purchases were paid on a current basis.

Fixed asset inventory – To verify physical existence of items on the School inventory list, I randomly selected items from the inventory list and checked for their physical presence in the listed room. As I moved throughout the School, I also picked items from each room and then verified that the item was on the inventory list. I was able to locate inventory items with the assistance of school personnel. Of the 891 items contained on the school’s property inventory, I selected a sample of 357 (40%). Of the 891 items selected from the list, all items were found with the exception of two items, a vacuum and an Elmo presenter. I have been told these were discarded. However, they are still on the list of equipment. Of the 891 items selected, all items were tagged with the exception of 9 items (3%). These items consisted of a mower, an audiometer, a Cisco switch, a tilt truck, an Ipad, a projector, and two wireless access devices. Of the items tested, 18 items (2%) were located in a room different than what was listed on the inventory list.

With the exception of the nine items noted above, all of the items I found were clearly marked with a property number and as property belonging to Washington Parish School Board. The principal is in charge of the inventory list. However, it is my understanding that teachers are required to prepare an inventory list for their respective rooms at the beginning and end of each school year. It should be stressed to the teachers the importance of completing proper transfer sheets when items are permanently moved from one room to another. It should also be stressed to them to properly complete a sheet for any items that are discarded. After review of the School activity accounts, l found a copier that was purchased. It was traced back to the inventory list. The control of the fixed asset inventory at Franklinton Junior High School is in excellent shape.

I was not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the specified elements, accounts, or items. Accordingly, I do not express such an opinion. Had I performed additional procedures, other matters might have come to my attention that would have been reported to you.

This report is intended solely for the use of the specified users listed above and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes.

REPORT

WASHINGTON PARISH SCHOOL BOARD

INDEPENDENT ACCOUNTANT’S REPORT ON

AGREED-UPON PROCEDURES

FOR

WESLEY RAY ELEMENTARY SCHOOL

ANGIE, LOUISIANA

AS OF AND FOR THE PERIOD

July 1, 2013 through June 30, 2014

WASHINGTON PARISH SCHOOL BOARD

INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED-UPON PROCEDURES

Washington Parish School Board

Franklinton, LA

I have performed the procedures listed below, which were agreed upon by the Washington Parish School Board and Superintendent. These procedures were performed solely to assist the school board management with respect to compliance with policy and procedures concerning individual school activity accounts and school property inventory at Wesley Ray Elementary School for the year ended June 30, 2014. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, I make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Bank reconciliation - Each month tested was mathematically correct, all reconciling items were proper and the reconciled balance equaled the activity account ledger. Beginning and ending balances were traced to prior and subsequent year balances to verify proper cutoffs with transactions recorded in the proper period and balances carried forward properly. There were no exceptions to school board policy concerning bank reconciliation procedures in the months I tested. The beginning bank balance at July 1, 2013 was $31,545, and the balance at June 30, 2014 was $36,486, resulting in a net increase of $4,941 for the year ended.

Cash disbursements – School board policy requires that a properly executed requisition and purchase order be issued prior to the purchase or order of goods and services. Of the disbursements for the fiscal year, a total of 20 items were examined. Two items (10%) did not have an invoice or receipt attached as backup documentation. One item (5%) had a purchase order date before the actual purchase requisition date. One item (5%) had an invoice dated before the purchase requisition and purchase order date.

All invoices were paid on a current basis, and the disbursement records were neat and orderly allowing the verification process to be accomplished in an efficient manner.

Cash receipts – A total of 20 items were examined. Cash and checks were normally brought to the school secretary. The staff person turning in the money and secretary sign a manual receipt verifying that two people counted the money. A computer printout of the receipts and deposit for the day were printed out once they were posted into the computer.

All items tested were traced to the appropriate account in the activity ledger and back to the bank statement.

Concessions & Fundraisers - Concession operations and fundraisers consist of various units or groups as follows:

4) Snack Concessions-The school made a profit of $6,360 on snack sales for the year (37.63% gross profit). The funds were transferred to the general fund.

5) Pictures-Class pictures were taken by Lifetouch. Commissions paid by Lifetouch for the year were $210. The funds were not transferred at the end of the year.

6) Fundraisers-Wesley Ray Elementary had one major fundraiser during the school year selling World’s Finest Chocolate Bars. The profit made from the sale as of 6/30/14 was $6,340 (42% gross profit). These funds were used to help pay for incentives for the students. It should be noted that at the time of my procedures, the school did not have a finalized count of the profit. There are still some students and other persons who have not turned in their proceeds. The amount still due from students and other persons is $856.

7) The school had a fall festival to raise money for incentives for students. The total ticket proceeds and concessions was $1,163.

8) A Scholastic book fair was held during the year. The fair netted $292 that went toward Scholastic Dollars which were good for purchase of Scholastic Book items.

All invoices for concession purchases were paid on a current basis.

1) 9 items (5%) had no visible tag. These were playground equipment, a mower, and 2 heaters.

2) 3 items (2%) were not located on the school grounds. These were bleachers moved to another school.

3) 1 item, a computer, was not in the listed room.

4) 1 computer was found in a room at the school but was not found on the inventory list.

All of the items I found, except for the 9 items mentioned above, were clearly marked with a property number and as property belonging to Washington Parish School Board. The inventory list for Wesley Ray Elementary School was in excellent shape. The principal is in charge of the inventory list. However, it is my understanding that teachers are required to prepare an inventory list for their respective rooms at the beginning and end of each school year. It should be stressed to the teachers the importance of completing proper transfer sheets when items are permanently moved from one room to another. It should also be stressed to them to properly complete a sheet for any items that are discarded. After review of the School activity accounts, l did not find any fixed assets that have been purchased. The control of the fixed asset inventory at Wesley Ray Elementary School is in compliance with school board policies.

Prior examination report findings – The prior examination of Wesley Ray Elementary School was for the period July 1, 2009 through June 30, 2010. There were issues with the disbursements not supported by an invoice or receipt. There were also issues with checks not supported by a requisition or purchase order and purchase orders dated after the invoice. There were issues with the receipts in that the computer generated reports or receipt was not attached, a deposit ticket was not attached, and one deposit was deposited three days after the actual receipt date.

It was moved by John Wyble, seconded by Lesley McKinley, that the Board accept the audit reports as presented. Motion carried unanimously.

Agenda Item #5 – Adult Education and HiSet Presentation – Penny Moses (Darrell Fairburn).

Penny Moses, Adult Education Supervisor, gave an update on the HiSet program on Monday night.

Agenda Item #6 - Consider a motion to adopt the minutes of the September 11, 2014, regular board meeting (Matthew Tate).

It was moved by Alan McCain, seconded by John Wyble, that the Board adopt the minutes of the September 11, 2014, regular board meeting as submitted to each member. Motion carried unanimously.

Agenda Item #7 – Consider a motion to adopt the schedule of the school board meetings for 2015 (Darrell Fairburn).

It was moved by Dewitt Perry, seconded by Bruce Brown, that the Board adopt the schedule of the school board meetings for 2015 as follows:

PUBLIC MEETINGS

ACT 707 OF 1977

REGULAR MEETINGS OF WASHINGTON PARISH SCHOOL BOARD - 2015

The Washington Parish School Board shall meet in regular session for the year 2015 at its legal domicile, the Washington Parish School Board Office Building, 800 Main Street, Franklinton, Louisiana, at 6:30 P.M., on the following dates:

THURSDAY - SCHOOL BOARD MEETINGS MONDAY - COMMITTEE MEETINGS

January 15, 2015

January 13, 2015 (Tuesday)

February 12, 2015

February 9, 2015

March 12, 2015

March 9, 2015

April 16, 2015

April 13, 2015

May 7, 2015

May 4, 2015

June 18, 2015

June 15, 2015

July 16, 2015

July 13, 2015

August 13, 2015

August 10, 2015

September 10, 2015

September 8, 2015 (Tuesday)

October 8, 2015

October 5, 2015

November 12, 2015

November 9, 2015

December 10, 2015

December 7, 2015

Motion carried unanimously.

Agenda Item #8– Personnel Report (Richard Kennedy)

PERSONNEL ADJUSTMENTS

RETIREMENT RESIGNATION

Franklinton Elementary School: Gail McDaniel, Special Education Teacher, Retirement Resignation effective September 28, 2014.

Mt. Hermon School: Debra Byrd, Principal, Retirement Resignation effective October 6, 2014.

Wesley Ray Elementary School: Doris Dillon, School Lunch Worker, Retirement Resignation effective September 25, 2014.

Wesley Ray Elementary School: Elma Pittman, Special Education Paraprofessional, Retirement Resignation effective September 23, 2014.

RESIGNATION

Franklinton School District: Brent Beauvais, Bus Operator, Resignation effective October 20, 2014.

Franklinton Elementary School: Pamela Benison, Literacy Paraprofessional, Resignation effective October 31, 2014.

Mt. Hermon School: Kim Crowe, Regular Teacher, Resignation effective October 1, 2014.

Varnado High School: Rhonda Gunnell, Special Education (HS) Teacher, Resignation effective September 26, 2014.

TRANSFER

Linda Darlene Garcia, Bus Operator, Wesley Ray District TO Bus Operator, Franklinton District effective October 21, 2014.

EMPLOY

Mt. Hermon School: Pauline Bankston, Interim Principal, Employ effective October 9, 2014 through May 31, 2015.

Agenda Item #9 – Consider a motion to adopt Transportation Adjustments (Richard Kennedy).

It was moved by Dan Slocum, seconded by Alan McCain, that the Board adopt the Transportation Adjustments as follows:

TRANSPORTATION ADJUSTMENTS

Franklinton District:	Extend the route of Melaney Rausch 7.9 miles one way to pick up student on Camp Road. Effective date: September 26, 2014.
Mt. Hermon District:	Extend the route of Colston Martin 6.7 miles one way to pick up students on Pleasant Hill Road, Alexis Drive and J. W. Riles Road. Effective date: September 2, 2014.
Pine/Thomas District:	Extend the route of Janet Thomas .4 miles one way to pick up students on Bruce Ladner Road. Effective date: September 15, 2014.
Wesley Ray District:	Extend the route of Rena Knight 5 miles one way to pick up student on Pearson Road. Effective date: September 8, 2014.
Wesley Ray District:	Extend the route of Rena Knight 12 miles one way to pick up student on Mitch Road. Effective date: September 10, 2014.

Motion carried unanimously.

Agenda Item #10 - Superintendent’s Report

Superintendent Fairburn read the proclamation from Governor Bobby Jindal proclaiming October 2014 as Louisiana Educational Diagnosticians month. Tricia Smith, Director of Special Education introduced Donna Givens and Rebekka Stafford, two of the five parish educational diagnosticians. The Board thanked them for their service to the system.

Superintendent called a Personnel committee meeting for Monday, October 20^th at 5:00 p.m. to discuss the student transfer and withdrawal policy.

ADD TO THE AGENDA:It was moved by Alan McCain, seconded by Dan Slocum, that the Board consider a motion to authorize withdrawal privileges for Pauline Bankston on all Mt. Hermon School bank accounts and terminate withdrawal privileges for Debra Byrd on all Mt. Hermon School bank accounts effective October 9, 2014. Motion carried unanimously.

It was moved by Alan McCain, seconded by Dan Slocum, that the Board authorize withdrawal privileges for Pauline Bankston on all Mt. Hermon School bank accounts and terminate withdrawal privileges for Debra Byrd on all Mt. Hermon School bank accounts effective October 9, 2014. Motion carried unanimously.

Agenda Item #11 - Personal Privileges – School Board Members

Dan Slocum thanked Ms. Debra Byrd for her service to Mt. Hermon School. He also thanked Randy Seal and the sheriff department, Mr. Fairburn and all staff for their help during the difficult and trying situations at Mt. Hermon School.

Agenda Item #12 - Consider a motion to enter into Executive Session under LA R.S. 42:17A (2) concerning prospective litigation.

It was moved by Alan McCain, seconded by John Wyble, that the Board enter into Executive Session under LA R.S. 42:17A (2) concerning prospective litigation. Motion carried unanimously.

Agenda Item #13 - Consider a motion to return to regular session.

It was moved by Alan McCain, seconded by John Breland, that the Board return to regular session. Motion carried unanimously.

ADD TO THE AGENDA: It was moved by John Wyble, seconded by Dewitt Perry, that the Board consider a motion to appoint Richard Kennedy as Internal Compliance Officer. Motion carried unanimously.

It was moved by John Wyble, seconded by John Breland, that the Board appoint Richard Kennedy as Internal Compliance Officer. Motion carried unanimously.

ADD TO THE AGENDA: It was moved by Alan McCain, seconded by Dewitt Perry, that the Board consider a motion to adopt the resolution as presented by the attorney. Motion carried unanimously.

It was moved by Alan McCain, seconded by John Breland, that the Board adopt the resolution as presented by the attorney as follows:

WHEREAS, the Washington Parish School Board (the “Board) owns and is in control of the property known as the former Pine High School located at 27164 Highway 62, Franklinton, Louisiana 70438; and

WHEREAS, on or about November 15, 2011, the Board through a contactor demolished the former Pine High School; and

WHEREAS, floor tiles located in the former Pine High School contained suspected asbestos material and the Board, through its employees and/or agents failed to make any notification or report to the Louisiana Department of Environmental Quality that it intended to demolish the school.

BE IT RESOLVED, that the Board enter into a Deferred Prosecution Agreement with the United States Attorney’s Office for the Eastern District of Louisiana (USAO) in accordance with the terms and conditions of the Deferred Prosecution Agreement, a copy of which is attached hereto and made a part hereof.

BE IT FURTHER RESOLVED, that the Board accepts and acknowledges responsibility for the facts set forth in the Factual Basis attached hereto and made a part hereof as Exhibit “A”.

BE IT FURTHER RESOLVED, that Board waives any rights it may have to be issued an indictment from the grand jury of the Eastern District of Louisiana.

BE IT FURTHER RESOLVED, that the President of the Board is directed to execute the Deferred Prosecution Agreement and Exhibit “A” Factual Basis in the forms as attached hereto.

BE IT FURTHER RESOLVED, that Darrell Fairburn, Superintendent of the Washington Parish School System, is authorized and directed to make any appearances required by the USAO and execute any other documents that may be required by the USAO to comply with the purpose of this resolution.

The above motion carried unanimously.

******************************************************

I, the undersigned Secretary of Washington Parish School Board, certify the above to be a true and correct extract of the minutes of the Washington Parish School Board on October 9, 2014 and the same has not been rescinded.

Darrell Fairburn, Secretary

Motion carried unanimously.

Agenda Item #14 - Consider a motion to adjourn.

It was moved by Alan McCain, seconded by Bruce Brown, that the Board adjourn. Motion carried unanimously.

______________________________

Matthew Tate, President

______________________________

Darrell Fairburn, Secretary