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Auditor raises $300,000 bank-reconciliation discrepancy; board asks business office for follow-up
Summary
The district auditor reported a June bank reconciliation discrepancy of about $300,000 and recurring control weaknesses; the board requested the business office respond and scheduled the issue for the next meeting.
The independent auditor told the Kensington School District board that year-end bank reconciliations included incorrect balances and recurring documentation issues, including an approximately $300,000 discrepancy on the June reconciliation.
Pam, the auditor, told the board that the June reconciliation "is off by about $300,000," and that the business office had effectively rolled adjustments into July rather than updating the June reconciliation. She said the reconciling statement that accompanied the June closing did not reflect the correct balances and that some reconciliations lacked dates next to signatures. "All you really need to do is add a date line right next to the signature and make sure that he signs and dates it when he does it," Pam said, describing the absence of dated sign-offs as an issue that has appeared in audits over multiple years.
The auditor characterized the errors as preventable record-keeping lapses. "It's just kind of carelessness," she said, noting that the small size of KES might contribute to the recurring issue but also stressing that the items are basic financial controls. The auditor urged timely preparation and dated sign-offs for reconciliations to catch issues earlier.
Board members pressing for clarity acknowledged that Michelle from the business office was not present to respond. The board agreed to ask the business office to watch the meeting tape and prepare responses; the board chair said the business office should be asked to present answers at next month's meeting. One board member said it would be useful to have the business office attend so there is a record and so the board can "close the loop." Another board member offered to add the auditor presentation and business office response to the next board agenda.
There was also discussion about whether the audit report had been submitted to the state. A staff member explained that the audit generally is submitted after board approval; the business office will confirm submission timing once the board reviews and approves the report.
Ending: The board directed staff to schedule a business-office response on the next meeting agenda and said the district will follow up on the auditor's control recommendations. The auditor's report will be an agenda item for the next meeting so the board can obtain direct answers from business-office staff.
