CLARKSVILLE, TN (CLARKSVILLE NOW) – Rossview High School had been flagged for three internal control and compliance deficiencies, which led to an investigation led by the Tennessee Comptroller’s Office. However, club officials have indicated that they have corrected the deficiencies listed and have been in compliance ever since.
The Hawks Dugout Club is a nonprofit School Support Organization (SSO) authorized to fundraise in support of the Rossview High baseball program, CMCSS spokesperson Anthony Johnson told Clarksville Now.
Johnson said that the deficiencies in question were actually identified by CMCSS’ Internal Controls personnel, who reported them directly to the Comptroller of the Treasury for investigation. “SSOs are subject to audit by the Tennessee Comptroller of the Treasury at the discretion of the Comptroller. SSOs must maintain all records in a format that allows auditors to follow the details of each transaction. SSOs shall provide, upon request, access to all books, records, and bank account information to the Comptroller, to school and school system officials, and to members of the organization.
“CMCSS appreciates the work of our Internal Controls personnel and the support of the Comptroller’s office to identify deficiencies and ensure compliance with local, state, and federal laws and regulations,” said Johnson.
Election of entire new board
Meanwhile, Laura Hyer, spokesperson for the Hawks Dugout Club, told Clarksville Now the investigation spanned from fiscal year 2023 to FY 2024. “CMCSS had made the boaster club aware of deficiencies and some things that weren’t being done in a timely matter, according to the rules and regulations that we have to follow as an SSO” Hyer said.
“At that time, we decided to elect an entire new board for the following fiscal year. So, beginning in August of 2024, we had all new board members elected and approved, and we’ve been in compliance since that time period. Those who currently serve on the board were not a part of the organization during that time.”
Comptroller investigative findings
According to the investigative report, the first deficiency dealt with club officials failing to ensure collections were deposited timely and that deposit slips included an itemized listing of checks.
“Club officials failed to ensure that club funds collected from multiple fundraisers were deposited within three days as required by the Model Financial Policy,” said the report. “Investigators noted concessions collections for games in February, March, and April 2024 were held for several months before being deposited into the club’s bank account in September 2024. Investigators also noted the club’s Venmo collections were held in the Venmo account instead of being transferred to the club’s bank account within three days.”
A delay in depositing funds weakens internal controls over collections and increases the risk of fraud and misappropriation, said the report.
Failure to retain documentation for collections, disbursements
The second deficiency relates to club officials failing to document, adequately account for and retain documentation for all collections. The report said due to the club officials failing to oversee, document and account for fundraising and collections, investigators were not able to verify “the accuracy and completeness of the amounts recorded as collected and whether all collections were deposited.”
Lastly, the final deficiency listed deals with club officials failing to retain adequate supporting documents for some disbursements. The report says that Tennessee code requires that a school support organization maintain, at minimum, detailed statements of receipts and disbursements for at least four years and be available by any member of the organization, principal, director of schools, a director designee, or the office of the comptroller of the treasury.
“Requiring documentation, such as invoices or receipts, allows club officers to verify that the payment is proper and reasonable. Without adequate supporting documentation, investigators were unable to determine whether some of the club’s disbursements were for legitimate expenses,” said the report.
The report ended with saying club officials indicated that they have corrected or intend to correct the deficiencies listed by the investigation.
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