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Auditor issues unmodified opinion but notes late filings, cash-reconciliation problems; district fund balance rises
Summary
An external audit for fiscal 2023–24 concluded with an unmodified opinion but cited three findings including late state aid certification and cash-reconciliation timing; the district’s overall fund balance increased from about $19 million to $21 million.
Mister Mitchell, auditor, told the Metropolitan Public School District Finance and Facilities Committee that the districtreceived an unmodified opinion on its fiscal year 202324 financial statements but the auditors reported three findings and a number of post-audit adjusting entries.
The audit report, Mitchell said, flagged that auditors prepared some of the financial statements and recorded material audit adjustments after the auditorson-site work; the district also filed its state aid certification on Sept. 25, after the statutory Sept. 1 deadline. Mitchell said the late filingdid not reduce overall aid but delayed payments. The auditors also reported timing issues reconciling cash and delays in providing requested documents.
Why it matters: the auditfindings highlight internal control and timeliness problems that can complicate accounting and cash flow even when the financial statements receive a clean opinion. Committee members discussed the potential operational effects of timing issues and the need to tighten reconciliation procedures.
Details from the audit and committee discussion: - The auditors reported three findings, including auditor-prepared financial statements and timing/reconciliation issues; they proposed 17 adjustments and documented 10 proposed adjustments in their working papers. - The districtstatement of financial position was reported at about $37,000,000.39 and the governmental fund balance increased from roughly $19,000,000 in 2023 to about $21,000,000 in 2024. - The auditors noted difficulties reconciling cash tied in part to a recent software change; Mitchell said timing differences and month-to-month reconciling items drove the variance, not evidence of theft. "It wasn't anything stolen," Mitchell said. - Committee members pressed staff about whether the cash-reconciliation discrepancies would persist; staff said they plan to devote time this year to close-out and to use a DPI cash-adjustment mechanism if residual differences remain. - The audit commentary also included an advisory note on compensated-absence footnote changes driven by accounting pronouncements.
Committee response and next steps: No formal action to accept or reject the audit was taken during the meeting; committee members thanked auditors and staff and asked district finance staff to continue work on reconciliations and post-audit adjustments.
The committee also discussed a related operating issue: the district's participation in the Community Eligibility Provision (CEP) for school meals. Mitchell and staff reported an anticipated annual loss of about $200,000 in the food service fund attributable to CEP participation and lower reimbursement rates; the districthas sufficient fund balance to cover that shortfall for multiple years but acknowledged the need to model longer-term sustainability if reimbursements or participation rates change.
The committee scheduled continued follow-up on reconciliation processes and internal controls.
