Sheboygan Area School District gets unmodified audit opinion; auditors cite repeat findings on transportation records and vendor checks

Auditors from CLA told the Sheboygan Area School District Committee of the Whole that the district’s 2023-24 financial statements received an unmodified opinion, but the audit reported repeat findings on pupil transportation records and required federal vendor suspension and debarment checks.

The auditors’ unmodified opinion means, in their view, the statements are complete and presented in accordance with professional standards. Brian, an auditor with CLA, said, “That is the highest level of assurance that you can receive.” The audit also included two repeat compliance findings and a repeat internal-control disclosure related to preparation of the financial statements.

Why this matters: the district’s financial statements show the district receives substantial federal and state aid—auditors said roughly $17,000,000 in federal funds and about $105,000,000 in state funds are included in the statements—and those programs are subject to compliance testing. CLA told the board that the programs auditors tested represented about $10,000,000 (roughly 58%) of federal funds tested and about $95,700,000 (about 90–91%) of state funds.

On compliance findings, the audit listed two repeat items. The first compliance finding flagged by CLA concerned suspension and debarment checks for vendors. Brian explained the rule auditors tested: when a district…