Press Release from PHSSA on Student Activity Fund

RICHMOND, VA   June 9, 2011 – Patrick Henry School of Science and Arts (PHSSA), Richmond’s first charter school, is releasing the following statement in regards to recent reports regarding the Richmond Public School (RPS)’s student activity fund used by PHSSA: 

The PHSSA Board of Directors has been communicating with RPS administration continuously since February about the student activity fund. At the direction of the Board, PHSSA’s independent accountant conducted an internal audit of the student activity fund, which was opened at an RPS bank, uses an RPS tax identification number, and was not under the control of the PHSSA Board or its Treasurer.  Working collaboratively with PHSSA administration and staff, the accountant gathered all of the information available at the time and issued a report to the Board in late April.

In response to the findings of that audit and in keeping with its role as the governing body of PHSSA, the Board voted unanimously on May 3^rd “to implement financial procedural controls for the student activity fund.” These financial procedural controls were recommended by PHSSA’s independent accountant and include:  Procedures for teachers, staff and administration on collecting and recording lunch money; controls over meals served; and invoice reconciliation.  These controls were put in place in addition to procedures and controls already in place that are outlined in the 129-page student activity fund procedures manual provided to the PHSSA administration by RPS when the account was originally opened.

The Board communicated the above findings and information to all involved parties, including the PHSSA and RPS administrations immediately after the PHSSA Board took action.  Additionally, emails and phone calls were made to follow up on outstanding questions and requests were made to receive any audits or findings conducted by RPS.  The Board continues to work with RPS to keep the lines of communication open and ensure that all accounts are managed in a financially responsible manner that is in the best interest of the school.

The Board has been notified of a state investigation regarding the student activities account.  Although the Board did not initiative this investigation, it will cooperate fully with the authorities to show that it has been working proactively to collect and disseminate all information about this account to the appropriate parties.

PHSSA understands that fiduciary responsibility is an important responsibility for this school, which was founded not only on an innovative curriculum, but also on the basis of transparency and financial efficiency.  In keeping with this responsibility, last year, PHSSA Board requested an independent audit of the PHSSA Board managed bank account.  In March 2011, PHSSA released the finding of an independent audit conducted by the independent accounting firm of Goodman & Company.  Their audit report stated:

“In our opinion, the financial statements [of PHSSA] present fairly, in all material respects, the financial position of Patrick Henry School of Science and Arts as of June 30, 2010, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.” According to the accompanying management letter, Goodman & Company did not “identify any deficiencies in internal control that we consider to be material weaknesses.”

PHSSA will continue to work collaboratively with RPS Board and administration to ensure that as much information, as allowable by privacy laws, is conveyed to the Patrick Henry stakeholders, including parents, teachers, staff and volunteers. We thank everyone for their continuous support in helping bring educational opportunities to the city of Richmond and Commonwealth of Virginia.