Auditors give Hazel Park an unqualified opinion but flag material weakness; general fund balance falls below state threshold

External auditors presented the Hazel Park School District’s fiscal-year 2024 audit and an accompanying single-audit report and recommended several control and reporting improvements while issuing an unqualified opinion on the financial statements.

Amber Sutter, engagement partner for the district’s auditors, told the board the auditors issued an unqualified (clean) opinion on the June 30, 2024 financial statements. The auditors also reported a material weakness in internal control over financial reporting, driven by late or incomplete schedules, material adjusting entries and repeat issues from the prior year. A single-audit finding noted a significant deficiency on Title I: the district failed to meet a 1% parental-involvement spending requirement for that grant.

Key figures presented by auditors and staff: - Total governmental net deficit: approximately $39,000,000 (auditors attributed most of this to pension liabilities). - Net pension liability…