Thompson School District confronts audit findings, approves amended budget and related contracts

The Thompson School District R-2J Board of Education on Jan. 22 accepted a comprehensive financial audit that identified multiple material weaknesses in internal controls, approved payment of an expanded audit invoice and consulting contract, and adopted an amended 2024–25 budget reflecting lower revenues and added expenditures.

The outside auditor, Plante Moran, reported findings the district must address, and the board approved an amended budget and several related expenditures to fund corrections and operations. The board voted to approve an additional invoice for the audit work and to accept the Annual Comprehensive Financial Report (ACFR).

Why it matters: The audit found deficiencies in internal controls, supervision, reconciliation and documentation that increase risk to district finances. Board members and members of the public pressed district leadership for more transparent, regular budget-to-actual reporting and for stronger oversight of finance operations.

Plante Moran partner Jamie Assemacher, appearing with audit lead Mark Wengren, told the board the audit resulted in an unmodified (clean) opinion on the financial statements while also listing several internal-control deficiencies that the firm recommended the district remedy through stronger processes, segregation of duties, and training. Assemacher said many of the audit’s findings reflect systemic weaknesses that create increased risk and should be prioritized for remediation.

Interim finance staff and district leadership told the board the audit work uncovered issues during Plante Moran’s first-year, more in-depth review of district records. Superintendent Doug Schafer said the district had no prior indication of the issues in August and September when the auditors started work and that preliminary findings surfaced later in the audit process; the board was notified as the preliminary findings emerged and the district has begun steps to address them.

Public comment was dominated by concerns about the audit. Several speakers, including resident Robert Rumpfeld and local government accountability coordinator David Cook, said the audit exposed mismanagement and urged the board to create a finance oversight committee and to hold leadership accountable. Student and community commenters also urged more transparency and vigilance over taxpayer funds.

The board approved several motions related to the audit and to the district budget and contracts. The board voted to pay an expanded invoice for the audit work (reported as $145,000) and to accept the ACFR after discussion with Plante Moran. Board members repeatedly called for more frequent, monthly budget-to-actual reporting and clarity on beginning fund balances that affect appropriations.

The board also discussed and approved the district’s proposed amendments to the 2024–25 budget. Finance staff said the district faces a combined negative adjustment to per-pupil revenue and MLO (mill levy override) revenue totaling roughly $1.2 million in reduced revenues and identified about $5.9 million in additional projected expenditures tied to one-time items, reclassifications (for example, a Medicaid FTE reallocation), legal costs, and audit/consulting expenses. The amended budget documents show the projected net fund impact across funds is approximately $7.8 million; finance staff noted some beginning fund-balance adjustments remain under reconciliation.

Board members sought and received commitments from staff for more timely, monthly actual-vs-budget reports going forward, and for continued updates as reconciliation and corrections are completed. Interim finance director Zach Mosher, introduced earlier in the meeting, was present; district leaders said staffing changes and turnover in finance contributed to capacity and oversight gaps.

Votes at a glance: - Approval of expenditures over $50,000 (audit invoice increase to $145,000): passed, roll call 6–0. - Approval of the proposed 2024–25 amended budget: passed, roll call 6–0. - Approval of the Annual Comprehensive Financial Report (ACFR) for fiscal year 2023–24 (accepting the audit): passed, unanimous. - Approval of related consulting engagement (additional contract for consulting with audit team): motion carried (board approved funding to retain consultant for remediation; details discussed in meeting).

What’s next: Plante Moran provided a set of auditor recommendations the district plans to implement, including documented procedures, segregation of duties, grant reconciliation on a regular schedule, improved documentation and supervisory review, and staff training. Board members asked staff to return with regular, monthly finance reports and to present planned staffing or process changes that will reduce the risk the audit identified.

Ending: Board members, auditors and staff agreed the district will prioritize remediating the audit findings and improving regular financial reporting. Several public speakers said they will continue to press for a permanent finance oversight structure and transparency as the district implements the auditor’s recommendations.