During the recent Norfolk City Public School Board meeting, Sherry Amos, a principal with Clifton Larson Allen, presented the audit findings for the fiscal year 2024. The audit revealed an unmodified opinion, indicating that the financial statements are free from material misstatements, which is a positive outcome for the school system.

However, the audit also highlighted several significant issues that need addressing. Notably, there was a delay in completing the audit, primarily due to high turnover in the finance department. This delay not only pushed the audit completion to March 11, 2025, but also caused the city of Norfolk to miss its regulatory deadline for financial reporting. The school system's financial information is crucial as it is included in the city's overall financial statements.

Amos pointed out three material weaknesses in internal controls. The first was related to capital assets, where the school system failed to properly report certain capital projects funded by the city and federal grants. This oversight necessitated a restatement of financial statements, amounting to approximately $12.4 million for fiscal year 2023.

The second weakness involved financial reporting, where discrepancies and errors indicated a lack of thorough review before the statements reached the auditors. Amos emphasized the need for the school system to establish robust policies and procedures to ensure accurate and timely financial reporting.

Lastly, the audit revealed issues with account reconciliations, exacerbated by turnover in the accounting department. Bank reconciliations were significantly delayed, and the annual school report was submitted late, leading to further discrepancies in the financial records.

In conclusion, while the audit results affirm the integrity of the financial statements, the identified weaknesses underscore the need for improved financial management practices within the Norfolk City Public Schools. Addressing these issues will be crucial for maintaining transparency and accountability in the school system's financial operations, ultimately benefiting the community it serves.