Page No.

Dist. No. 6


National District of Character
Special Meeting
For
Fox C-6 Board of Education

FOX C-6 SERVICE CENTER
Roy Wilde Conference Room
849 JEFFCO BOULEVARD
ARNOLD, MO 63010


Tuesday, August 12, 2014
7:00 p.m.

Notice is hereby given that there will be a Special Meeting of the Fox C-6
Board of Education, on Tuesday, August 12, 2014 and will begin at 7:00
p.m. The meeting will occur at the Fox C-6 Service Center, Roy Wilde
Conference Room, 849 Jeffco Boulevard, Arnold, Missouri. The agenda
for the meeting is as follows:


1. Call Meeting to Order/Pledge of Allegiance/Roll Call

2. Approval of State Audit

3. Adjournment

DATE: August 7, 2014
TO: Fox C-6 Board of Education
FO!: "o#n Bra$%a&, CFO
E: %'ort and %co((%ndation to %)u%st a *tat% Audit

T#% 'u+&ic is %ntit&%d to %x'%ct Fox *c#oo& District to conduct its affairs ,it# int%grit-,
#on%st- and o'%nn%ss, and d%(and t#% #ig#%st standards of conduct fro( t#os%
,or.ing for it and ,it# it/ T#% District is co((itt%d to 'rot%cting t#% 'u+&ic funds
,it# ,#ic# it #as +%%n %ntrust%d/ !ini(i$ing t#% &oss%s to fraud and corru'tion is an
%ss%ntia& 'art of %nsuring t#at a&& District0s r%sourc%s ar% us%d for t#% 'ur'os% for
,#ic# t#%- ar% int%nd%d/
1Fraud2 is a t%r( us%d to d%scri+% a (u&titud% of off%nc%s, inc&uding d%c%'tion,
forg%r-, t#%ft, (isa''ro'riation, co&&usion and fa&s% r%'r%s%ntation of (at%ria& facts/
Corru'tion aris%s ,#%n a '%rson r%c%i3%s an- +%n%fit ,#ic# inf&u%nc%s t#%( and
caus%s t#%( to act diff%r%nt&- ,#%n conducting District +usin%ss/ Board 'o&ic-
r%)uir%s t#at (att%rs in3o&3ing an- financia& irr%gu&ariti%s ar% ta.%n s%rious&- and
'ro'%r&- in3%stigat%d/ Additiona& action, suc# as disci'&inar- 'roc%%dings and4or
'ros%cution, ,i&& +% ta.%n ,#%r% %3id%nc% of fraud or corru'tion is found/
5n r%c%nt ,%%.s, %3id%nc% is (ounting r%garding t#% &i.%&i#ood of 3arious financia&
i('ro'ri%ti%s during t#% 'ast t#r%% fisca& -%ars 62011-2012, 2012-2017 8 2017-
20149/ A&&%g%d i('ro'ri%ti%s inc&ud%:
Financia& transactions t#at a''%ar to +% of a '%rsona& natur% rat#%r t#an for a
District 'ur'os%/
:naut#ori$%d rat%s of co('%nsation/
!isus% of district 'ro'%rt-/
Transactions t#at ar% 'ot%ntia&&- i&&%ga&/
D%struction of '#-sica& and %&%ctronic r%cords/
5rr%gu&ariti%s r%&at%d to t#% issuanc% of t#% (ost r%c%nt ;%n%ra& O+&igation
+onds and dis'osition of t#% +ond funds/
Du% to t#% 'ot%ntia& (agnitud% of t#% a&&%g%d i('ro'ri%ti%s, t#% r%c%nt d%'artur%s of
#ig# ran.ing ad(inistrators a&ong ,it# t#% n%%d for an ind%'%nd%nt outsid%
in3%stigation, it is #%r%+- r%co((%nd%d t#% Board of Education 'ro('t&- r%)u%st an
audit fro( t#% Offic% of t#% !issouri *tat% Auditor/
T#% !issouri *tat% Auditor can 'ro3id% t#% Auditor0s *,ift Ass%ss(%nt <rogra(
6A*A<9, focusing on s%rious a&&%gations of fraud, ,ast% or a+us%/ T#% *tat% Auditor
(a- acti3at% t#% A*A< ra'id r%s'ons% t%a( ,#%n t#%r% is su+stantia&, cr%di+&%
%3id%nc% to +%&i%3% t#at t#%r% is:
Fraud, 3io&ations of stat% or f%d%ra& &a,, ru&% or r%gu&ation, or significant
(isa''ro'riation, (is(anag%(%nt, or ,ast% of 'u+&ic r%sourc%s= or
*ignificant ris. of &oss of confid%nc% of t#% '%o'&% in t#%ir go3%rn(%nt du% to
fisca& a+us% or (is(anag%(%nt= and
T#% n%%d for i((%diat% action to 'r%s%r3% r%&%3ant %3id%nc% and4or 'r%3%nt
continu%d #ar(/
B%for% acti3ating A*A<, t#% *tat% Auditor ,i&& d%t%r(in% ,#%t#%r t#% a&&%gation is
cr%di+&%, s'%cific and co#%r%nt, and ,#%t#%r t#% a&&%gation ,arrants i((%diat%
action/ >#%n a''ro'riat%, t#% *tat% Auditor ,i&& r%f%r t#% a&&%gation to t#% Attorn%-
;%n%ra&, !issouri Et#ics Co((ission, D%'art(%nt of <u+&ic *af%t- or ot#%r 'ro'%r
aut#orit-/
T#% District?s goa& (ust +% accounta+i&it-, trans'ar%nc-, r%s'onsi+i&it- and +%st
'ractic%s fro( t#% *c#oo& District ad(inistration and t#% Board of Education/ To,ard
t#at goa&, t#% Board of Education #as conc&ud%d t#% %('&o-(%nt of t#% for(%r
su'%rint%nd%nt and for(%r CFO/ A n%, CFO #as +%%n #ir%d and t#% s%arc# for a n%,
su'%rint%nd%nt is in 'rogr%ss/

As sus'icious acti3it- #as +%%n disco3%r%d during t#% 'ast f%, ,%%.s, Ti( Crutc#&%-,
Acting *u'%rint%nd%nt, and 5 #a3% ta.%n a s%ri%s of int%rna& actions to corr%ct
'ro+&%(s and d%3%&o'%d 'roc%dur%s to 'r%3%nt r%occurr%nc% of si(i&ar 'ro+&%(s/
Actions inc&ud%:
<r%s%r3ation of r%&%3ant %3id%nc%/
%ca&&ing a&& cr%dit cards/ 6A f%, cr%dit cards #a3% +%%n r%-issu%d und%r n%,
(or% r%stricti3% us%r agr%%(%nts/9
Corr%cting of unaut#ori$%d rat%s of co('%nsation/
%co3%r- of funds/
:&ti(at%&-, t#% o3%ra&& o+@%cti3% is to id%ntif-, %sta+&is# and (aintain +%st 'ractic%s=
addr%ss ,%a.n%ss%s in curr%nt 'roc%ss%s and introduc% i('ro3%d s-st%(s for t#%
(anag%(%nt of t#os% 'roc%ss%s/
T#% !issouri *tat% Auditor?s Offic% ,i&& (a.% an- and a&& findings 'u+&ic u'on
co('&%tion of t#%ir r%'ort/