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External auditors flag activity-fund controls and recommend training; district plans fixes
Summary
The district’s external auditors outlined a series of finance issues — activity-fund reconciliations, cash-basis violations, outstanding checks, sales tax paid and a budget overspend — and the board heard plans for training, corrective actions and expanded review of booster/PTA finances.
External auditors presented the Haysville school district’s 2023–24 audit and flagged multiple control and statutory compliance weaknesses in activity funds and district accounting, and the board and staff outlined steps to address them.
John Regier of the Lloyd Group led the audit presentation and identified repeated issues in school activity funds, including missing reviews of monthly reconciliations, cash-basis violations (negative club balances at month end), outstanding checks older than two years, and activity funds not reported in district financial statements. "We wanna see another set of eyes on that on those reports," Regier said of reconciling activity funds. "You don't know how many times we've seen it where that cash summary... and that bank reconciliation don't tie to each other."
What the audit found: The auditors said the district had: bank-reconciliation and review weaknesses at Campus High School and Haysville Middle School; activity funds with month-end cash deficits; outstanding checks over two years; activity funds not included in the financial statements; journal entries lacking independent review; instances of sales tax paid on purchases (described as disallowed for a municipal entity); a budget overspend in the bond and interest fund tied to payment timing; and disallowed or inactive activity funds that should be closed or moved elsewhere.
Single-audit and federal funds: The auditors reported the district spent roughly $5,500,000 in federal awards for the 2023–24 year and included related single-audit documentation and findings.
District response and next steps: The business office said it has already scheduled meetings with building staff about activity funds, will provide professional development for secretaries and principals, and plans targeted changes to internal controls. The district also discussed offering audits or similar reviews for booster clubs and PTOs to extend oversight; staff said they would recommend the board cover costs to provide that service.
Auditor comment on opinion: Regier said the firm issued an adverse opinion on U.S. generally accepted accounting principles (GAAP) because the district reports on a regulatory basis rather than GAAP, but the auditors issued an unmodified opinion on the regulatory basis of accounting used by the district: "We do give an unmodified opinion on the regulatory basis of accounting," he said.
Board action: No formal vote was required on the audit presentation itself. Board members praised the audit’s thoroughness and asked staff to proceed with training and corrective steps.
Reporting note: The audit included statutory references cited by the auditors for cash-basis and activity-fund requirements. The district said it will work with the Lloyd Group to deliver targeted trainings and follow-up reviews.
