Frankfort CPA Challenges Lincoln-Way 210 Statement on $821,000 in Student Activity Fund Expenses

Frankfort resident and CPA Robert Ripp wrote an email Friday to Taryn Atwell, the newly hired Lincoln-Way 210 Director of Community Relations, after reading a story in the Chicago Tribune by Gregory Pratt.

Pratt's story outlined $821,000 in "questionable expenses" from the District's Student Activities Fund.

See story here:

http://www.chicagotribune.com/suburbs/daily-southtown/news/ct-sta-lincoln-way-student-activity-fund-st-0508-20160506-story.html

In his email to Atwell, Ripp explained how the Illinois Administrative Code from the Illinois State Board of Education clearly outlines how a Student Activities Fund should be operated.

See Ripp's supporting documents here: http://www.lwatu.org/#!student-activity-questionable-expenses/hrfwi

Ripp's email in full:

"Ms. Atwell -

"Please see attached today's Chicago Tribune article regarding $821,000 of questionable expenses.In the article you are quoted saying 'sources of this money were never required / supposed to be spent on student activities' and that the source of the funds were 'vending machines, rebates and rentals....Although the money was put in the activity account, it wasn't required to be used on student activities.'

"The Illinois Administrative Code (23 IL Admin 100) and ISBE's IPAM Manual dictate the treatment of Student Activity Funds.

"There are two types of funds 1) Student Activity Funds and 2) Convenience Accounts. I have attached Appendix J of the IPAM Manual that describes each of these two funds. Nowhere in these materials is there a fund called "Activity Account".

"Additionally, the Illinois Admin Code dictates the proper treatment of rentals (acct 1910) and proceeds from vendor contracts -rebates (acct 1980).Both of these category of expenses are required to be recorded in either the Education Fund -10 or the Operations and Maintenance Fund -20; not the Student Activity Fund -97.

"Student Activity Funds are reported as Agency Funds on the District's annual audited financial statements and AFR submitted to ISBE; therefore, the revenue and expenses from these accounts are not reflected in these reports.

"Additionally, expenses paid from Student Activity Funds are not part of the OEPP calculation.

"I just wanted to make sure you had the correct information regarding Student Activity Funds as it appears you have now been tasked with explaining financial matters for the District.

"As the District's newly hired Directorof Community Relations, I am sure you would not want to mislead the community regarding the nature of the activity in these accounts.

"Robert Ripp

District 210 Taxpayer and Parent"

http://www.lwatu.org/#!student-activity-questionable-expenses/hrfwi