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Independent consultant to inspect Ronan books

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RONAN — An independent financial consultant from Helena was hired last week to track down funds that were unaccounted for in the Ronan School District’s most recent financial audit. 

According to Superintendent Andy Holmlund, accountant Judy Cheff will be tasked with finding approximately $5,000 of more than $743,000 in funds earmarked by auditors as having been overstated in the 2013 fiscal year. The approximate $738,000 balance of funds has been accounted for since the audit was made. 

Holmlund said Cheff was hired “in order to rectify and hopefully get closure of this ongoing, balance-not balance.” 

The district had two six-figure miscalculations noted in its past three audits. A number of other, smaller issues were noted in audits dating back to 2009. The district managed to correct most of the problems, Holmlund said. A combination of personnel turnover, inadequate auditing services, and the complicated nature of school finance bookkeeping contributed to the problems, according to Holmlund. District Clerk Pamela Harris pointed out that miscalculations discovered in audits of Lake County government can have a trickle down effect on the smaller entities that receive payments for local taxes. If the county audits its finances after the school district does, and numbers are off, it sometimes requires backtracking already balanced accounts and recalculating. If the information and timing provided in financial reports aren’t 100 percent accurate and up to date for both parties, errors can be made. 

Despite the discrepancies the district has received an “unmodified” or “unqualified” audit every year since 2009. 

“That’s the best opinion they can get,” said Kim Downey, of Denning, Downey and Associates, the district’s auditor. “It means the financial statements are fairly stated.” 

In the 2013 audit, $593,587 of taxes receivable were overstated, according to Downey. That amount was reconciled. 

“It was due to an accounting clerical error,” Downey said. 

Approximately $150,000 in additional cash funds did not reconcile at the time of the audit. 

“I’m not sure what the error is,” Downey told the Ronan School Board at an April 14 meeting. 

Harris was able to find most of the funds, and an additional $103,000 that had been missed by the auditing firm altogether for two years. 

The district estimates $5,000 or less is unaccounted for. The independent contractor will be paid approximately $50 per hour to track the funds down before the end of June. Holmlund expects the funds will be easy to find. 

Ronan School Board Chairman Mark Clary noted that the district isn’t missing any money — it needs to figure out which accounts the funds belong in. 

“It’s a nice thing that we have the money,” Clary said. “We’re not short.”

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