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Auditors report unmodified opinion; board approves corrective action plan addressing prior-period adjustments
Summary
The district’s auditors delivered an unmodified audit opinion for fiscal year 2023–24, noted prior-period adjustments tied to capital and bond accounting and recommended internal-control improvements; the board approved a corrective action plan to address two single-audit findings related to prior-year restatements.
Independent auditors told the Newberg School District 29J Board of Directors on Jan. 14 that they issued an unmodified opinion for the fiscal year 2023–24 financial statements and reported two material weaknesses tied to prior-period adjustments the district staff discovered and corrected.
Audit highlights: David Bledsoe, with the audit team, said the financial statements are fairly presented (an unmodified opinion). The auditors also reported State Minimum Standards work and federal grants review; the single-audit schedule for federal awards included two material weaknesses that stemmed from prior-year reporting issues, which district staff identified and corrected before the audit was finalized.
Findings and recommendations: Auditors noted (1) prior-period adjustments involving capital additions and the capital asset register that led to restatements, and (2) bond-fund accounting where deposits exceeded state investment pool limits and required mark-to-market adjustments in the prior year’s reporting. The auditors recommended stronger segregation of duties in accounts payable and broader internal controls (e.g., two-person approval for large ACH disbursements), review of fidelity bond insurance limits and consideration of SSAE 18 reports from third-party payroll/retirement vendors.
Corrective action and vote: District staff described steps already taken to reconcile the fixed asset schedule and correct coding between funds. The board approved a corrective action plan to document those steps and submit the plan to the state as required for the two findings originating in the 2022–23 fiscal year. The motion to approve the corrective action plan passed unanimously.
Why it matters: The audit and corrective action plan affect federal grant reporting, state compliance and district internal controls. Auditors commended staff cooperation and noted improvements in financial review processes; they also cautioned that GASB pronouncements and lease-accounting guidance (GASB 87/100 implementation discussed in the audit) add complexity to financial reporting.
Ending: The board accepted the audit presentation, approved the corrective action plan and directed staff to file required documents with state authorities. Auditors and staff said they will continue reviewing policies to strengthen controls and reporting.
