Insufficient financial records and missing funds have promptedthe state board of education to appoint a financial advisor to theLincoln County School District.

The financial advisor appointment was expected to be made Fridayduring a State Board of Education meeting in Jackson.

Reports of missing funds were confirmed Friday by Lincoln CountySchool District Superintendent Perry Miller when contacted at aconference on the Gulf Coast.

“There is missing money, and it is under investigation,” Millersaid, although he would not comment on the amount.

Ronnie Watson, with the state’s department of financialaccountability, has been working with the school district sinceApril to “construct and reconstruct” records in an effort toorganize financial accounts. Watson’s experience with the districtled to his appointment as advisor.

Board members are making the appointment after being presentedwith information about a disclaimer issued on the school districtand auditors’ efforts to find funds absent from the 1999-2000 auditreport.

A disclaimer means that the district’s financial records werenot in a condition where auditors could make an officialstatement.

“The records were in such disarray… we couldn’t make sense” ofthem, Pete Smith, an auditor’s office spokesman told a Jacksonnewspaper covering the meeting.

Miller has previously released information regarding schooldistrict efforts to get its bookkeeping system in order and figureout what has happened to the missing funds.

“We’re trying our best to correct our problems,” Miller saidtoday.

The financial problems apparently started before Miller waselected to office last year, and he said he’s left “holding thebag.”

“These problems that I have inherited have been ongoing for sometime,” he said.

Miller oversaw the hiring of Watson and Frank Fortenberry, afinancial consultant, in April to help the district straighten outthe matter. The district hired a new business manager in May afterJanet Smith, the former business manager, resigned earlier in theyear.

Charges have not been filed against anyone and districtofficials, along with state department officials, would not commentfurther on the investigation of the financial situation.

Miller has pointed out, though, that the district is notstruggling financially.

“We are on solid financial ground,” he said.

The district will be assigned an advisor for a period of about18 months, or until the audit of the 2000-2001 books show thedistrict’s financial records are in order, Miller explained.

The new audit began a few weeks ago and is expected to takeseveral months.