Blount County Schools explains audit findings

A state comptroller's audit of Blount County finances for the fiscal year that ended June 30, 2023, cited two findings related to schools.

The first related to a federal projects fund, an account through which Blount County Schools pays expenses that then are reimbursed from grant funds.

The report said the fund "had a cash overdraft for the majority of the year." Former BCS Chief Financial Officer Troy Logan explained to The Daily Times that the issue resulted from the large amount of funding flowing through that year because of higher grant amounts.

Years ago BCS had put about $250,000 in the account to cover the lag between spending and reimbursement from the state. "This past year, that 250,000 wasn't enough," Logan explained, but the problem has since been resolved with smaller amounts flowing through.

A response to the audit from the Blount County government said its attorneys believe the county had followed state statutes but would seek approval for an interfund loan to cover any future cash deficits.

The second finding in the report from the Tennessee Comptroller of the Treasury said the schools "failed to request reimbursements for grant expenditures on a timely basis," which resulted in a deficit at June 30, 2023.

Logan explained that BCS had submitted the request, but the state then asked the district to submit it differently, which resulted in a slight delay. "That was the first time they had ever done that," Logan said.

The county's response said it would focus even more on working with the state Department of Education to ensure timely reimbursement.

Logan noted that in the 24 years he was with BCS, including these two there had been only half a dozen audit findings — and the last had been in 2012. The last finding had been because auditors said software being used didn't have adequate controls built into it. In another instance auditors noted the district had purchased an oven through a bid it did not realize had expired.