Independent auditors give Beloit district ‘clean’ opinion; general fund balance below board target
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Summary
Lauterbach & Amen presented the district’s fiscal‑year 2023‑24 audit on Feb. 18, issuing an unmodified (clean) opinion but noting an unrestricted general fund balance below the board’s 18% target and a restatement increasing net position after a fixed‑asset adjustment; auditors recommended monitoring debt service and fund balance targets.
Brad Porter of Lauterbach & Amen presented the School District of Beloit’s independent financial audit for fiscal year 2023‑24 at the board meeting on Feb. 18. The firm issued an unmodified ("clean") opinion on the district’s financial statements but identified a few management‑letter items for board attention.
Key findings: The auditors reported an unmodified opinion and no internal‑control findings. They also noted a restatement to correct capital asset records that increased net position by about $1.15 million. Auditor commentary highlighted that the district’s unrestricted general fund balance ended the year at about 8.46% of budgeted expenditures, below the board’s 18% fund‑balance target (a shortfall the report quantified as roughly $6.5 million relative to the board policy target).
Auditor recommendations and context: Porter said two management recommendations were issued: (1) debt service funds exceeded their working budgets, largely because of a defeasance (prepayment) that was recognized during fiscal 2024, and (2) the unrestricted general fund balance fell below the board’s 18% target. The audit also called out three upcoming accounting standard changes the district should prepare to implement in future fiscal years.
Board discussion: Board members asked about bond ratings and outstanding long‑term debt. Porter said audit documents feed ratings discussions, but the firm does not track the district’s current rating as part of the audit. Porter and district staff recited outstanding long‑term debt balances disclosed in the audit (including qualified zone academy and energy conservation bonds and 2017/2020 building bonds) and explained recent defeasance activity. District administration said the audit will be posted online and that staff will work to address reporting items identified by the auditors.
Board action: The board voted to accept the 2023‑24 district financial audit report; the motion (moved by Greg Schneider and seconded by Brian Anderson) carried unanimously.
Why it matters: The clean audit opinion affirms the district’s financial reporting, but the fund‑balance shortfall and debt disclosures underscore the financial pressures discussed elsewhere in the meeting, including the ad hoc committee’s recommendation to back a planned operational referendum.
