Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit Esser topic
No spam. Unsubscribe anytime.
District auditor outlines audit steps, flags ESSER wind-down and dipping fund balances
Summary
External auditors described the district audit process, told the board they must assess internal controls and compliance, and flagged two statewide concerns: maintenance-of-effort tests as ESSER funds end, and a noted decline in total and unassigned fund balances.
The board received an overview of the district’s financial audit process and a high-level assessment of areas auditors will monitor this year, including carryover effects from federal ESSER funding and changes in fund balances.
The auditor described standard audit phases — risk assessment, field work and reporting — and stressed that management is responsible for preparing financial statements in accordance with generally accepted accounting principles (GAAP). The presenter said auditors must “maintain independence” and obtain “reasonable assurance” about the financial statements and related internal controls.
The auditor flagged two issues auditors are watching across Georgia as ESSER federal pandemic funds wind down: maintenance of effort (districts must not replace local spending with federal funds) and reductions in both total fund balance and unassigned fund balance. The presenter said trends show some districts drawing down reserves as ESSER support ends and urged maintaining financial stability.
The auditor also said the district’s risk assessment will adjust year to year depending on activity (for example, capital projects) and that the audit team reviews prior audits, policies and interviews key personnel. The presenter noted that management may choose whether to correct immaterial misstatements the audit finds.
Separately, district staff noted an education-curriculum item: the district adopted a 6–12 ELA curriculum last year, and staff said 6–12 teachers would like to reevaluate that adoption after further review. Staff also reported a $5,000 Georgia Power grant supporting a district program.
No formal financial decisions or votes were taken at the meeting; the presentation was informational and the auditor said the final opinion and any required adjustments will be presented after field work is complete.
Ending: Board members heard an overview of the audit timetable and the auditor’s early observations; district staff and auditors recommended vigilance as ESSER funding ends and fund balances normalize.
