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STATE OF ALABAMA
DEPARTMENT OF EDUCATION
ED RICHARDSON
STATE SUPERINTENDENT OF EDUCATION
ALABAMA STATE DEPARTMENT OF EDUCATION
AGREEMENT
This agreement is entered into by the Lawrence County Board of Education and the Alabama State Department of Education, as part of the Cooperative Audit Resolution and Oversight Initiative (CAROI), to resolve issues relating to Lawrence County's compliance with Federal guidelines.
This agreement resolves audit issues contained n the attached Schedule of Findings and Questioned Costs for-the Years Ended September 30. 1993 and 1992 and for the Years ended September 30, 1991 and 1990.
The State Department of Education and Lawrence County hereby agree to the following terms and conditions in full resolution of the above-referenced issues pertaining to Lawrence County's compliance with Federal requirements applicable to Chapter I/Title I funds:
1. Both parties agree to reduce the 1990 and 1991 questioned costs amount from $34,867.73 to $22,652.96. This reduction was made possible by presentation of evidence that the questioned cost amount of $12,214.77 was the result of a misclassification of an employee's salary on Lawrence County's final financial statement for this fiscal year.
2.Both parties agreethat LawrenceCounty will repaythe remaining audit amount of $22,652.96.
3. Both parties agree to reduce the 1992 and 1993 questioned costs amount from $270,292.81 to $88.126.82. The questioned cost amount of $182,165.99 is removed from the audit based on the fact that even though it appears that proper purchasing procedures were not followed and that funds not approved for expenditure by the State Department of Education were improperly obligated, these funds were used to deliver satisfactory program services to eligible children.
4. Both parties agreethat Lawrence County will repaythe remaining audit amount of $88,126.82.
5. Both parties agreethat the total questioned costs - prior unresolved andcurrent audit amount is hereby reduced from $305,160.54to $110,779,78, areduction of $194,380.76.
6. Both parties agree that the total amount to be repaid by Lawrence & County is $110,779.78.
7. Lawrence County Board of Education will adopt policies and procedures and implement such that assures the following:
A. The system will follow the Alabama Competitive Bid Law for all disbursements from Federal funds, where required
B. The system will follow State requirements for all building renovations to be paid from Federal funds under programs that allow renovation.
C. All building renovations, where allowed, to be paid from Federal funds will be approved by the Board
D. Thesystem will followFederal regulations for all disbursements for laboror services from Federal funds
E. All salaries charged to Federal programs will be commensurate with work performed
F. The system will follow approved budgets for all disbursements from Federal funds
G. The system will follow procurement procedures that ensure proper approval prior to ordering and prior to payment
H. Personnel positions responsible for assuring compliance will be indicated in adopted procedures. Should be part of job description.
8. Lawrence County will train the responsible employees that will carry out the new policies and procedures.
9. If requested by Lawrence County, the State Department will provide technical assistance, as appropriate and as resources permit, to assist Lawrence County in the implementation of these policies and procedures.
10. In the event that Lawrence County fails to comply with these requirements during a two-year period (July 1, 1997 - June 30, 1999), Paragraph 5 is null and void and the State Department of Education may pursue the reduced audit amount of $I 94,380.76.
11. Either party may revise this agreement at any time upon mutual agreement.
12. The provisions of this agreement do not in any way restrict any other remedy or remedies available to the State Department should Lawrence County fail to comply with any of the terms of this agreement, or any statutory or regulatory requirement relating to any program administered by the State Department.
13. This agreement does not constitute either an admission of liability on the part of Lawrence County or an admission of error on the part of the State Department with respect to any audit claim or finding.
Agreement signed by:
Jimmy H. Baker
Deputy State Superintendent
Patrick Graham, Superintendent
Lawrence County Board of Education
Ed Richardson
State Superintendent of Education
Wade Harrison, Chairman of the Board
Lawrence County
