THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, May 10, 1996 TAG: 9605100494
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY PERRY PARKS, STAFF WRITER
DATELINE: ELIZABETH CITY LENGTH: Medium: 74 lines
Pasquotank County's version of the state Smart Start program took a while to conform to required accounting practices, an audit released Thursday says.
But that's because the state didn't provide accounting guidelines until after the local program was up and running, said Randy Keaton, chairman of the Pasquotank County Partnership for Children Inc.
The partnership is completing its first fiscal year as one of 24 local programs under the North Carolina Smart Start umbrella. The program stemmed from Gov. James B. Hunt Jr.'s initiative to make sure kids start school ``healthy and ready to learn.''
State Auditor Ralph Campbell Jr. released individual audits of the 24 partnerships' financial activities for the fiscal year ending June 30, 1995.
That period covered the Pasquotank partnership's first nine months.
``This is our first year. We were just in the process of getting started,'' Keaton, also Pasquotank's county manager, said Thursday. ``You get formed, and then they tell you how to do it six months after being formed.
``We started the game and got the rules six months later. Now that we've found out, we have corrected them.
``I think you'll see very few things in next year's audit.''
The audit of Pasquotank's partnership noted seven findings of incorrect procedures and one finding of minor noncompliance with accounting rules. There was no indication of any wrongdoing.
Campbell said from Raleigh on Thursday that the problems identified with most of the partnerships were typical of fledgling agencies.
Keaton said most of the findings stemmed from the partnership acting on its own until the state provided guidelines for Smart Start accounting. The partnership's reply to every finding and recommendation indicated that problems discovered last year were being corrected by new procedures.
Among the findings, the report says that during its first nine months, the Pasquotank partnership:
Did not keep orderly records of many purchases. ``Of the 292 checks we reviewed, we noted 16 checks that did not have documentation to support payments in the amount of $1,577.36,'' the report says. ``In addition, numerous payments did not have adequate supporting documentation and travel advances were not documented as being subsequently settled.''
Did not document prior approval by partnership Executive Director Donna James-Whidbee of purchases made by the agency.
Did not properly classify revenue and expenses by activity. Local Smart Start agencies across the state are still waiting for a uniform accounting system to help resolve this.
Placed too many financial-related duties with one person. The report recommends dividing record-keeping and processing of financial activities among two or more people. The partnership's office has only two staff members, so Board of Directors members are now involved in the process, Keaton said.
Did not have an adequate system to manage contracts with government and outside agencies. The partnership is now working with an attorney to develop a system for managing contracts.
Submitted inaccurate financial status reports for the period ending June 30, 1995. Auditors said they could not make reported expenses match supporting accounting records. Expenses should agree at the end of this fiscal year, the partnership says in the audit report.
The Pasquotank County Partnership for Children operated this year with a $1.2 million state budget, along with about half a million dollars left over from its start-up year.
Local officials expect the General Assembly to approve a similar budget for the fiscal year starting July 1.
The partnership's focus is to make sure kids through age 5 are well-cared-for and healthy. A clearinghouse of information on day-care centers is already in place, and a resource center combining a range of services for families is expected to start up soon.
KEYWORDS: EDUCATION SMART START by CNB