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Independent auditor issues unmodified opinion on USD 464 fiscal 2023 finances; flags food-service cash balance
Summary
Gordon, CPA reported an unmodified opinion on the district's FY2023 financial statements and an unmodified single-audit opinion for federal child nutrition grants, while recommending the food-service fund reduce its cash balance.
An independent audit of Tonganoxie USD 464's fiscal year 2023 finances returned an unmodified (clean) opinion, the district's auditor told the Board of Education on Feb. 10.
"We've issued the district's financial statements for the year ended 06/30/2023 an unmodified opinion on the regulatory basis of accounting," Sean Gordon of Gordon, CPA, told the board, describing the opinion as "the highest and cleanest opinion that we can issue under state and federal guidance." Gordon said the audit found the district had just over $22 million in cash on hand as of June 30, 2023, and that notes to the financial statements and fund-level schedules were largely consistent with prior years.
Gordon also said the district underwent a federal single audit because it expended more than $750,000 in federal grant funds during the year; the auditors focused on the child nutrition cluster and issued an unmodified opinion on compliance with federal requirements for that grant cluster. The audit report included one auditor recommendation: the food-service fund cash balance is higher than Kansas State Department of Education (KSDE) guidance suggests, and the auditor recommended working that balance down during FY24 and into FY25.
Gordon told the board the firm had a positive working relationship with district staff during the audit and that the FY24 audit was nearing completion. He said one historic bookkeeping issue involving insurance withholding had been resolved for FY23 and that a small adjustment would be required for FY24.
Board members asked for clarification of the prior issue; Gordon described it as related to treatment and reporting of health-insurance withholding and said staff had made changes with the district's other accountant to fix the reporting going forward.
The audit presentation was informational; no board action was required at the Feb. 10 meeting. Gordon said the district's FY2024 audit report would be delivered soon.
