Independent auditor issues clean opinion on CHSD 218 FY24 financials; single-audit near completion

The district's independent auditor, Jeffrey Slade, senior manager with RSM, told the Community High School District 218 Board of Education on Feb. 20 that RSM has issued unmodified (clean) opinions on the district's fiscal year 2024 financial statements and the annual financial report that the district files with the Illinois State Board of Education.

Slade said the single-audit report covering federal grant programs was in the final stages and that RSM expects to issue unmodified opinions there as well. "We have issued unmodified opinions on the financial statements," Slade said, adding, "An unmodified opinion is a clean opinion and is the best opinion that we can provide."

The audit presentation highlighted several measures of the district's financial position. On the government-wide statements Slade said the district's net investment in capital assets ended the year at about $58,000,000. He reported a net increase in net position for the year of about $27,000,000. On the fund statements he said the general fund reported an approximate increase in fund balance of $14,000,000, bringing the general fund ending balance to about $87,000,000. The audit also reported that the district's annual financial report (AFR) score from the Illinois State Board of Education was a 4.

Slade reviewed the audit's required communications to the board, including the significant accounting estimates RSM tested (self-insurance liabilities, depreciation, allowance for uncollectible property taxes, pension and OPEB liabilities) and the implementation of auditing standard SAS 145 that required testing internal controls over significant risks. He described the significant audit risks as fraudulent revenue recognition, management override of controls and valuation of pension and OPEB liabilities; RSM said testing provided comfort that controls were effective and that no material misstatements were identified.

One item RSM communicated as a past adjustment related to copier leases. Slade said these were short-term, low-dollar leases that met a threshold requiring presentation as a past adjustment under full-accrual accounting, and that management and auditors agreed the item was not material to users of the financial statements.

Slade said RSM performed testing on ESSER/American Rescue Plan grants and Title I during the single-audit work and had no findings to report to the board. He also stated there were no significant deficiencies or material weaknesses in internal control identified during the audit.

The presentation closed with a reminder that the audited financial statements include a five-page management discussion and analysis and detailed notes to the financial statements for users seeking more context. The board did not pose material questions during the presentation and accepted the report into the record.