Nevada County Picayune and Gurdon Times Newspaper Archive

Gurdon School Audit Shows Improprities

Annual audit finds Gurdon School District caught in loopholes.

All construction projects exceeding or equal to $10,000 must be open for bidding, but the auditors found this wasn't always the case locally.

Changes in bidding requirements for construction weren't fulfilled. The new requirements came into effect as of July 30, 1999, while the district was nearing completion of the primary school renovation at the time.

The audit reports: "The District did not solicit bids for the following construction projects-Primary School Renovation, $101,149."

Bobby Smithson, superintendent accepted responsibility for the mistake, saying he believed Ferrell Nelson, construction supervisor, when he assured Smithson, bids had been received.

Indeed, bids had been received on the electrical installation, but not the roofing project.

In information provided Smithson said, "When he hired some of the sub-contractors, I asked him if he had requested bids and his response was yes."

Again, Smithson conveyed his responsibility for not requiring Nelson to show him the bids. "I feel we received the lowest bid for the work on our primary school. It was done by sub-contractors who had done previous work for us and live near Gurdon."

Other changes in the policy show any project between the $10,000-50,000 must be advertised once a week for two weeks.

Also, any project exceeding $75,000 must contain statements which encourage the participation of small, minority, and women business enterprises.

Changes in requiring performance bonding surprised Smithson. From the change in policy information, projects exceeding $20,000 will now require a 5 percent bid bond.

Smithson said, "If we had required this, it would have added an extra $50,000 to the various projects cost."

The projects without bonds were GPS renovation, field house, stadium, concession, parking lot, and track at Gurdon High School.

Smithson told the school board members present, he was working under the impression the limit to receive a performance bond was higher  $50,000.

As part of the audits findings, an investigation is in progress concerning a forged check. A check written on the Gurdon High School Activity Fund in the amount of $408.00 was found.

Investigators with the Arkansas State Police are still looking into this matter, according to information provided.

Lastly, a finding of "insufficient segregation of duties," is always expected. Betsy Hurst, district treasurer commented, "Every school in the state gets it. They're saying the same person who writes the receipt for money shouldn't be the one allowed to manage it."

A letter was sent to CPA, David Terrell with the district's responses to the findings.

Thefts and vandalism have occurred at the Gurdon High School complex. Broken windows, damaged ceiling tiles, and stolen musical instruments were reported by band director, Alan Wimberly.

Two student's instruments and an instrument belonging to assistant band director with a value totaling $2,500 will not be covered by the school's insurance carrier, ASBA.

The ASBA recommended the victims investigate the chance their homeowners insurance would cover the expense. One family checked into it, but was refused.

According to Smithson, "one person was caught on the grounds by police officers with a missing set of keys from Principal Leonard Gills office." Also, Smithson conveyed his doubt concerning the possibility of restitution should the person caught be charged.

No action will be taken by the school board until more information comes to light.

The acre owned by the school district may soon be owned by the Crossroads Baptist Church. The school board approved a motion to offer the church options of paying $400 for the acre without timber or $2,000 with the timber intact.

Board member, Tommy Overby has and will converse with the pastor of the small church concerning their interest to purchase.