ETOWAH, Tenn. — A state auditor’s report on the Etowah City School released this week cited past inadequacies in procedures and documentation related to city gift cards, but Schools Director David Green said policy has been changed and the school’s former financial director has resigned.
The state comptroller’s office released the audit this week for July 1, 2006 through June 30, 2007.
The audit said former Finance Director Debbie Starkey “apparently obtained credit cards in the school’s name at her discretion, without any required approval by the director of schools.”
It stated that Ms. Starkey could not provide documentation about the cards and how they were used.
Ms. Starkey said this week that she followed system guidelines during her 19 years at the school.
“At that time it was the proper procedures,” Ms. Starkey said. “They had been in use for several years.”
She said former Superintendent Dr. Larry Beckley had directed her to obtain the cards in her name and said they were all used for school purposes.
According to the audit, the school received premium rewards from credit companies that included gift cards, fuel cards and cards for food items. The audit stated that Ms. Starkey used those cards “for her personal use at school-related conferences and later stated that some of the premium rewards had also been given to a consultant and used to purchase gifts.”
The audit stated that homeless grant funds were used to buy gift cards, which Ms. Starkey told auditors she used to buy school items such as cameras, headphones, and software packages. She told auditors some gift cards were used as rewards for employees, “such as Teacher of the Year, and others to teachers who were retiring.”
But there were no records documenting who received the cards, the audit states.
Other problems found in the audit, and subsequently corrected, included discrepancies between check payees recorded in the school’s computer accounting system and actual transacted checks, purchases not properly documented and inadequate separation of duties.
Mr. Green said the audit criticized the lack of recordkeeping but he said there were no indications anything illegal occurred.
He said the system hired a new finance director this year.
“We have put in new procedures and the auditors are satisfied,” he said.