Omaha Public Schools board accepts 2023-24 audit; auditors report unmodified opinions

The Omaha Public Schools Board of Education voted unanimously April 7 to accept the district's annual financial audit and related reports for Educational Service Unit 19 and KIOS-FM.

Auditors from Eide Bailly told the board their firm issued unmodified (clean) opinions on the district's financial statements and on the required federal single-audit of major programs. "We provided an unmodified audit opinion for the district," audit partner Jamie Fay said during the board meeting.

Why it matters: an unmodified opinion indicates the auditors concluded the financial statements are free of material misstatement. The single-audit covered federal awards (including ESSER and Title I) and found no compliance findings in the specific programs the auditors tested, Eide Bailly said.

Board discussion and findings: auditors said they issued one audit finding related to the preparation of the financial statements and material journal entries. Fay explained that the district and auditors worked together to adjust prior-period items and bring the statements into compliance with Governmental Accounting Standards Board (GASB) requirements. "We assisted the district in making some adjustments before we got those final issued," Fay said.

District staff told the board the finding reflected the complexity of recent GASB changes, including accounting for leases and subscription-based information technology. A district staff member said the administration and auditors have "stacked hands" to improve internal accounting processes so future reporting will be smoother.

Financial highlights presented to the board included: general fund revenue of roughly $816 million for the fiscal year; an overall unassigned general fund balance that met the district's 10—20% policy target; and pension-related disclosures showing the district's OSERS funding ratio and net pension liability as reported under GASB measurement rules. Auditors noted GASB 100 required additional footnote disclosures this year.

The board approved acceptance of the audit reports on a voice/roll-call motion. The vote was recorded as seven ayes and the motion passed.

What happens next: the audit reports were filed with the Nebraska Department of Education and the Nebraska Auditor of Public Accounts and will be available per state reporting rules. The administration said it will pursue the process improvements discussed with auditors to address the material journal-entry and financial-statement preparation finding.

"We appreciate the time Eide Bailly spent with our accounting team," a district staff member said during the presentation.