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Auditors report recurring capital‑asset weaknesses; district accepts 2023‑24 audit with corrective plan
Summary
External auditors presented the Lennox School District 2023‑24 annual audit, noting repeated weaknesses in capital‑asset records, untimely bank reconciliations and federal program findings; the board voted to accept the audit and pursue corrective steps.
Auditors presented the Lennox School District’s 2023‑24 annual financial audit to the board on Wednesday, citing a qualified federal awards opinion and an adverse opinion on governmental activities tied to incomplete capital‑asset records. The board accepted the audit and directed staff to move forward with corrective measures and the consultant work already under way to reconcile capital‑asset records.
“The district receives an unmodified opinion except for the governmental activities, which was an adverse opinion,” auditor Bobby of Ike Bailey told trustees, linking the exception to missing or incomplete capital‑asset documentation and a recurring finding going back to 2020.
Auditors flagged three material weaknesses: untimely bank reconciliations, several adjusting entries to financial statements identified during audit testing, and capital‑asset record gaps. For federal grant compliance the auditors issued a qualified opinion after finding weaknesses in inventory and reporting for a major program (identified as the SR program in the presentation). The state awards opinion was unmodified, though significant deficiencies were noted for site documentation (sign‑in/sign‑out) and reported classroom salary ratios.
When asked about timing, auditors said capital asset reconciliation is a multiyear effort and that bringing in a consultant is standard practice. “I wouldn’t expect it to be all wrapped up within a month or two; it’s probably six to eight months, if not longer,” Bobby said. District staff reported they have contracted support and put new monthly reconciliation checklists in place for accounting tasks.
Board discussion focused on implementation timelines and internal controls. Business staff said they have tightened month‑end protocols, applied for consultant support specific to capital‑asset identification, and implemented monthly checklists and workflow supervision to prevent future late reconciliations. Trustees asked for periodic progress reports on consultant milestones and the timing to resolve audit adjustments.
The board voted to accept the 2023‑24 audit as presented and to continue the corrective actions outlined by staff. Acceptance of the audit triggers follow‑up reporting and corrective action plans to be shared with the board and county office of education as required by state law.
