One year after the provincial auditor-general ordered nine fixes to repair “significant internal control weaknesses” in Langley School District finances, only three have been “fully or substantially” adopted.
A just-released follow-up report by the auditor-general includes a four-page self-assessment by the district that admits most of the proposed reforms have not been fully implemented.
“While the board is pleased with the progress to date, we recognize that there is more to be done and are committing to work toward full implementation,” the written self-assessment states.
Trustees are working together better and they are now requiring regular financial updates from staff, but tightened internal controls and long-range planning remain works in progress, according to the report.
The auditor general reviewed the district’s financial management practices after the discovery of a multi-million dollar budget deficit in 2009.
At the time, the district was forecasting a small budget surplus.
Following the review, the report by the auditor general’s office commented the board of trustees was “not functioning well” and wasn’t receiving “sufficient, appropriate and regular information, particularly financial information” from staff.
The report found “significant internal control weakness” in budgeting, accounting, reporting payroll and purchasing practices coupled with a lack of long-range panning.
Among its recommendations: trustees must work together better, understand their responsibilities, require staff to provide regular financial updates and hold staff accountable.
The auditor general also said staff at the district must tighten financial controls and provide regular updates to the trustees, and it called for a five year strategic plan, regular updates on that plan and a 10-year plan to maintain and repair district schools and other facilities.
The district report says the recommendations calling for a better working relationship among trustees, better reporting by senior management to the board and more questioning of staff by the trustees have been “fully or substantially” implemented.
The recommendations calling for trustees to have a better understanding of their roles and responsibilities, tighter internal financial controls and regular financial updates by staff have only been “partially implemented” the district admits, and the call for long range planning has not been dealt with at all.
In fact, the board has rejected the suggested five-year strategic plan and opted to continue with a three-year look-ahead while promising it will “begin discussions” about implementing longer-range planning.
