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Board accepts district's clean audit, auditor flags routine reporting finding
Summary
The Merrill Area School District Board accepted an unmodified (clean) audit for the 2023-24 fiscal year; auditor John Troffman highlighted reserves, short-term borrowing and one recurring finding about annual financial report preparation.
MERRILL, Wis. ' The Merrill Area School District Board of Education voted Feb. 19 to accept the district's audited financial statements for the fiscal year ending June 30, 2024, after a presentation from the district's external auditor.
The board accepted an unmodified ("clean") opinion issued by CliftonLarsonAllen principal and lead auditor John Troffman, who said the opinion reflects relatively few audit adjustments and sound internal controls. "Our opinion that we issued was a unmodified opinion, a clean opinion," Troffman told the board.
The audit shows general fund revenue of about $42 million and expenditures of about $41 million for 2023-24, leaving a general fund year-end fund balance of roughly $8,806,000. Troffman said the district's unassigned fund balance carried into 2024-25 was about $8,791,000, which he characterized as about 21% of expenditures and within common benchmarks for reserves. He also noted the district used short-term borrowing during the year, citing roughly $4.5 million in short-term debt tied to cash-flow timing.
Troffman reviewed the single-audit portion required for entities that spend more than $1 million in federal funds and said the district received a clean opinion there as well, though the report includes internal-control observations related to grant administration.
The auditor also noted a recurring compliance finding: districts commonly do not prepare the full annual financial report internally before auditors assemble the financial statements. Troffman said that circumstance is widespread and did not affect the clean opinion, but that it remains a standard finding.
After the presentation, Ron Liberty moved to accept the audit; Mike Hornisher seconded. The motion carried on a voice vote.
The board meeting served as the formal opportunity for trustees to ask questions about the audit and related standards Troffman said are forthcoming, including changes to GASB reporting for compensated absences that will affect future year financial statements.
The acceptance places the audited statements and the accompanying single-audit schedules into the district record and allows staff to proceed with year-end reporting and required follow-ups noted in the auditor's letter.
