A 2005-2006 audit report for the Hart School District’s Measure V Construction Bond is being circulated to Hart School Board members for review. The audit, conducted by Moss-Adams is critical of some of the accounting procedures implemented by Hart District Administrators.KHTS has posted the full Moss Adams report, along with steps the District has taken to prevent future accounting problems.
Measure V was passed by Santa Clarita voters in 2001, as bond monies to fund construction for our local Junior High and High Schools through 2013.
The report covers the 2006 Fiscal Year, from July 1, 2005 through June 30, 2006. Out of the total construction expenditures of $67,874,202 for that period, the Moss-Adams audit is questioning $6.6 million of expenditures and transfers. Specifically, Moss-Adams can not verify whether some of those monies were commingled with monies transferred from the Developer Fee Fund. It is possible that some Measure V funds were used to pay administrative salaries and transportation purchases, something prohibited by restrictions placed on the use of Measure V funds.
Hart District Superintendent, Jamie Castellanos, shared with KHTS that while the funds were used for what they were intended; that is pay for construction of our schools, the District’s accounting procedures were slack, and did not clearly show a proper trail to each expense. In retrospect the monies should not have been transferred to the Developer Fee Fund.
The Moss-Adams audit has made a number of recommendations to tighten procedures. You may read the recommendations along with the full audit by clicking here. (It is a large file so it may take a few minutes)
Castellanos stated that of the five open recommendations in the Moss Adams report, four of these have already been implemented by the District. Castellanos also informed KHTS that Colbi Inc, also conducted an independent audit of Measure V funds used in 2006. The District has already implemented their recommendation.
“We have gone through great pains to make certain we follow procedures based on the auditors recommendations and making certain that each expenditure is carefully categorized in its proper source of funding,” Castellanos added. The District will be issuing a press release tomorrow, in response to the report.
The Hart School Board has not yet seen the report. It was intended to be distributed and discussed at the next board meeting, on October 17th.
Jamie Castellanos, along with Hart School Board President, Patricia Hanrion will be guests for a special one-hour program on KHTS AM-1220, talking about the report on Thursday, October 18, 2007 at 9am. The program will also be available for listening at www.hometownstation.com. It will be available on our website “on-demand,” immediately after the broadcast.