A Nebraska state audit of the Morrill Public School District has heavily criticized 10 problem areas within the district's financial practices, according to the Chadron News.
The investigation, which studied the period between January 2009 and February 2011, was launched by state auditor Mike Foley after the Internal Revenue Service filed a $169,000 tax lien against the district earlier this year. School officials – including an unqualified bookkeeper and Morrill County superintendent Steve Osborn – were found to lack basic accounting knowledge and did not properly utilize the school's accounting software. Additionally, improper documentation was found relating to receipts, payroll vendor invoices, petty cash fund activity, accounts payable records, and the school's activities account.
A variety of audit solutions were recommended, including rectifying the district's bonding obligations, tracking and reconciling accounts, and adjusting contact, receipt, and check procedures.
"Things that needed to be done have been done," said Fred Cawiezel, school board president, according to the Scottsbluff Star-Herald. "The problems that we had with the IRS, all those penalties, taxes and interest have been paid."