San Jon Schools OKs audit report

The San Jon Municipal Schools board approved its annual audit for fiscal year 2022, which showed healthy finances but also two significant deficiencies that detailed shortcomings in the district’s documentation.

The audit was performed by Clovis-based certified public accountant De’Aun Willoughby.

“Our auditor commented that we did have a good audit, and our district finances were healthy,” superintendent Alan Umholtz wrote in an email to the Quay County Sun after the Jan. 16 meeting. “She said we saved $220,000 from last year’s budget which was great.”

One significant finding was the lack of documentation and timeliness in producing requested data.

The audit stated it was missing property tax statements from September, October and November and a pre-audit questionnaire from July, August and October.

Other documents were not received in a timely manner “which caused the auditors undue stress and long hours to ensure the audit report would be submitted by the due date,” the report stated.

The report stated the business manager was out on maternity leave in August. Requests for documents also were emailed, making them difficult to track.

“We have come up with a better way now,” the district stated in its response to the finding.

The response also stated the business manager will work with the auditor to establish a better plan for future audits, keep track of its requirements and discuss matters with Umholtz to ensure adherence.

The response also detailed other actions the district and business manager will take regarding personnel files, wage data reviews, account reviews and outstanding checks.

The district in March hired Albuquerque-based K12 Accounting LLC to be its business manager for $115,455 a year after its previous business manager, Julie Lafferty, resigned and no one who applied to fill the vacancy was qualified.

Umholtz stated in an email he was confident in K12’s performance.

Another significant finding was a $5,500 certificate of deposit under-reported to the state’s Public Education Department.

The district responded the CD was closed and that an entry was not required to recognize the asset.

In other business:

— The board approved a letter petitioning the U.S. Fish and Wildlife Service to delay by six months implementation of the lesser prairie chicken being labeled an endangered species.

The letter stated the time since the late November posting date and effective date this month “are inadequate for full and fair analysis of the listing,” and the language describing critical habitat was “vague and not clearly understandable.”

Quay County commissioners said earlier this month they would send similar letters to the agency that would request a delay in implementation.

— The board approved a resolution supporting Quay County’s request for a special state appropriation to build a new hospital in Tucumcari. Several other entities in the county have approved the same resolution.