Shorewood board accepts auditors' report, auditor urges stronger written procedures and higher reserve policy

Shorewood School Board members voted to accept the audited financial statements for the year ended June 30, 2024, after a presentation from Amber Juriske of CLA, the district's auditors.

Juriske told the board, “In summary, we issued an unmodified clean opinion on the financial statements.” She said auditors found no compliance issues on federal or state programs and no disagreements with management, but flagged one finding related to financial statement preparation and recommended continued strengthening of written policies and internal controls.

The auditor reviewed the district's fund balances and long‑term obligations. Juriske reported the district's general fund balance at “just over 10,200,000.0,” and noted that referendum debt service held about $3,000,000 in restricted funds. Other fund balances reported as of June 30, 2024, included a capital expansion balance of about $1,500,000, capital projects of about $440,000, community service of about $987,000, donations totaling roughly $612,000 and food service at about $573,000. Short‑term obligations were reported at about $3,600,000 and long‑term obligations just shy of $60,000,000; interest paid in 2024 was described as just under $2,000,000.

Juriske recommended the board consider increasing the district's minimum fund balance policy above the current 10% floor, suggesting a target more in the 25%–40% range to reduce the need for short‑term borrowing and to provide flexibility for capital and insurance changes. She also highlighted forthcoming changes in federal uniform guidance effective for awards on or after Oct. 1, 2024, including an increased single‑audit threshold, a higher equipment capitalization threshold, an optional de minimis indirect cost rate, and new cybersecurity internal control expectations.

Board members asked several follow‑ups about the budget‑to‑actual variances. Juriske said common causes for material variances include open staffing positions and delayed maintenance projects, and she identified unusually high interest earnings in fiscal 2024 as a factor boosting revenues relative to budget.

The board voted to accept the audit. No separate action was required on the auditor’s finding aside from acknowledging the recommendation that the district continue to document and update written financial procedures.

Ending: The board asked staff to include a winter data snapshot and related budget implications at the February meeting; auditors and district staff said they would continue follow‑up outside the meeting on the single, corrected finding and on implementing recommended control documentation.