Auditors find missing documentation on free/reduced meal forms; district to face single-audit finding

Auditors who reviewed the Saint Croix School District’s 2024–25 records reported on July 23 that the district’s annual audit was generally favorable but that the district will receive a finding related to free and reduced meal applications.

District staff told the board auditors made one adjusting journal entry to move Medicaid revenue from fund 10 to fund 27. Staff also said the auditors flagged that the back of free and reduced meal applications did not include the required certification entries showing eligibility determinations and signatures. Because the district receives more than $750,000 in federal aid, staff said it is subject to a single audit and the auditors selected the food service program for that review.

District staff said the finding is procedural rather than indicative of missing benefits; the district has assigned a new staff member to manage meal applications and will arrange training with Baldwin-Woodville School District staff and with the auditors. Staff said auditors went through required procedures with the new staff member during the review so she understands what documentation to record on future applications.

Staff also told the board they expect a state food-service audit by the Department of Public Instruction (DPI) at some point during the 2025–26 school year; sometimes DPI contracts an outside agency to perform the review. The board approved the finance report as presented.

Separately, the board received a summary of bank-account balances as of June 30, 2025, including an overall total account balance the district reported at $3,142,195.41 and a referendum balance of $60,707.48. The finance report was approved by vote.

District staff said they will correct procedures, document training and follow up with the auditors and DPI as needed. The board did not take additional action beyond accepting the audit overview and the finance report.