Board Accepts 2024–25 Audit; Adverse Opinion Tied to Cash-Basis Reporting; Timecard Controls Flagged

Unit District 196’s board on Sept. 23 accepted the district’s 2024–25 audit, which included an adverse opinion tied to the district’s use of cash-basis financial statements rather than generally accepted accounting principles (GAAP) accrual statements. Apart from that qualification, the administration reported no internal-control or compliance findings of a serious nature.

At the meeting a district staff member explained the adverse opinion is routine for districts that report on a cash basis: "That adverse opinion is because we issue our financial statements on the cash basis rather than accrual basis," the presenter said. The staff member added that the cash-basis approach is allowable under the state board’s reporting rules for some districts but does not meet GAAP reporting standards, which is why the audit opinion includes the qualification.

The audit highlighted one control finding related to the district’s new automated timekeeping system for noncertified employees: not all automated time sheets had been approved by building administrators and department heads during the first year of rollout. The staff member told the board that the district phased the new system and that more oversight and training have been implemented; staff said they expect the finding to be resolved in next year’s audit.

Administrators noted general fund balances and days cash on hand improved slightly year over year and that there were no internal-control weaknesses or compliance issues beyond the time-sheet finding. The board voted to accept the audit report without amendment.