Paradise Valley Unified board accepts clean audit for fiscal 2023-24; auditors note no material weaknesses

The Paradise Valley Unified School District governing board unanimously approved the district's fiscal year 2023'24 audit reports, the board voted during its public meeting after a presentation by district finance staff.

The district's external auditors issued an unmodified opinion on the annual comprehensive financial report and reported no significant deficiencies or material weaknesses in internal control. The auditors also found the district complied in all material respects with federal grant requirements for major programs and completed the Uniform System of Financial Records (USFR) compliance questionnaire as required by state law.

The audit presentation, led by Chief Financial Officer Missus Berrigan, outlined the audit process, reporting deadlines and the components of the audit package, including the single-audit reporting package and the USFR questionnaire. Berrigan said the district answered 94% of USFR questionnaire items with a "yes" or "NA," exceeding the statewide average for districts.

Board members asked detailed questions about year-over-year changes. Member Missus Christiansen asked why support services expenses increased about $11.4 million while instruction rose about $3 million. Berrigan explained that support-services administration recorded a Quasmire (class-action) liability of about $15.7 million tied to the Maricopa County judgment; if that one-time liability is excluded, support-services administration costs declined about $4.3 million year over year. She said the liability is coded to judgments against the district per USFR guidance and does not affect the district's budget capacity, but it does appear in the expense figures under GASB accounting rules.

Berrigan also reviewed the district's responses to the Arizona Auditor General's financial-risk analysis and noted areas flagged for potential risk, including enrollment decline and redirected capital monies into maintenance and operations. She added that the district's use of district additional assistance and bond capacity provides context for those entries. The reports were issued on time for GFOA and bond-disclosure deadlines, she said.

The motion to approve the audit reports was moved by Board Member Tony Pantera. During the roll call vote, Mrs. Christiansen, Mr. Pantera, President Greenberg, Dr. Lim and Ms. Wani voted aye; there were no nays or abstentions.

Board members thanked finance, purchasing, technology and human-resources staff for their work preparing the audit and supporting documents.

Berrigan said the district had procured the auditors through a competitive process and that field work was compressed in recent years to reduce on-site time because staff pre-supplied documentation.

The board's approval concludes the public acceptance step required to post the reports to oversight agencies and the district website and to submit required disclosure information for bondholders.

The board moved on to other business after the vote.