Fulton Independent Schools Responds to Audit Report

Pursuant to Kentucky Revised Statute 156.265, the Fulton Independent School District has conducted, on an

annual basis, audits of the financial records of the local board of education, Carr Elementary School and Fulton High School.

The district employs the firm of Shad J. Allen, CPA in Richmond, Ky., to perform the annual audit.

The audit report for the 2022 – 2023 school year, as presented at the Fulton Independent Board of Education meeting Nov. 21, discovered a significant discrepancy between the budgeted beginning balance of the 2023 – 2024 budget and the actual amount of funds available.

The auditors attributed the shortfall to three key findings:

1. The district’s accounting department did not have a system of internal control over financial reporting that would allow it to prevent, or detect and correct in a timely manner, a significant misstatement in its financial statements, including footnote disclosures.

2. The district was not in compliance with model procurement as required by Kentucky Revised Statute.

3. Purchase Orders were not being issued for purchases.

In response to these findings the district, working in conjunction with the Kentucky

Department of Education, The Kentucky Association of School Administrators, and The Kentucky School Boards Association, has developed a corrective action plan that is being implemented immediately. The plan addresses the concerns identified in the audit and introduces financial best practices that will safeguard against future concerns.

FISD Superintendent Jeff Rogers, in response to the findings, stated “We are excited about the positive

growth that is happening in our community and in our school district. I am confident that the new policies and procedures that we are implementing in our finance department will safeguard against these types of concerns going forward. The remainder of this school year will be challenging financially for our district. We will have to tighten our belts and focus on being diligent in how we use district funds. Despite these findings, we are financially stable and growing as a school district. I am confident that these new policies and procedures will have a direct impact on the continued success of our students. My expectation is that every decision made by our school district reflects the best interests of our amazing students.”

A full report of the Fulton Independent Board of Education meeting held Nov. 21 will be included in the Nov. 29 edition of The Current.