Auditor gives district an unmodified opinion; one significant deficiency remains on receivables

At the Jan. 13 meeting the board received a presentation from the district’s external auditors on the June 30, 2024 Financial and Compliance Report. The auditors issued an unmodified opinion on the financial statements and reported that, overall, the district’s financial condition shows increases in both revenues and expenditures compared with the prior year.

Sarah Bonsack, who presented the audit results, told the board the audit report begins with a transmittal letter from management and a management discussion and analysis that provides year‑to‑year comparisons. The auditors described the statistical section of the report as a 10‑year financial trend resource and recommended the management discussion and analysis for a quick overview.

Bonsack said the district’s governmental fund revenues were about $269.7 million for the year, up roughly $14 million from the prior year, and noted the district expended about $53.4 million in federal funds for the year, of which $33.0 million were ESSER funds. She reported an increase in capital outlay tied to HVAC and roof work and that the district issued $75.9 million in revenue bonds outstanding as of June 30, 2024.

On audit findings, Bonsack said the government-auditing-standards report included one significant deficiency related to insufficient segregation of duties over accounts receivable and revenue. The district is in the process of correcting that finding; auditors attributed part of the issue to timing of information and said several prior-year items have been corrected. The federal single-audit portion showed one instance of noncompliance connected to timing of indirect charges to ESSER funding; auditors indicated they will re‑test that area in the next audit.

Board members asked questions about the prevalence of such findings in districts of this size. Bonsack replied that significant deficiencies are common across districts of varying sizes and emphasized that many of the prior-year items had been corrected this year, which she described as a positive trend. Director Poston asked which outstanding item concerned the auditor the most; Bonsack said the accounts receivable and revenue segregation of duties issue was the chief remaining item and that staff had been working on remediation for multiple years.

The audit summary and the financial statements were presented for review; the finance committee scheduled follow-up meetings to continue oversight and to monitor corrective steps.