Anson County Schools auditor gives clean opinion but flags three material weaknesses in FY2024 audit

Anson County Schoolsauditor Nick Wicker told the school board the district received an unmodified opinion on its FY2024 financial statements but that the audit identified three material weaknesses and several bookkeeping issues.

Wicker said, "We express an unmodified opinion over your basic financial statements. That is what we commonly refer to as a clean opinion." He told the board auditors tested four major programs for single-audit purposes and reported three findings the firm classified as material weaknesses: excessive expenditures over appropriations, internal controls over capital assets, and general ledger deficiencies.

The audit showed budgetary overspending in the general fundinstructional services by $12,928 and ancillary services by $5,718. The Child Nutrition Fund operating expenditures were overexpended by $58,387. Wicker said some of the Child Nutrition overage resulted from pension and OPEB adjusting journal entries that are difficult to predict and recommended keeping a cushion on those lines.

Wicker also reported that $385,823 of governmental fund expenditures and $14,871 in the school food services fund met the capitalization threshold but were incorrectly recorded as current-period expenditures instead of capital assets. He described the general ledger finding as the result of a large number of correcting journal entries and noted turnover in a key position had likely contributed.

The auditor highlighted changes in the districtfinancial position: a $915,370 overall decrease in governmental fund balance compared with FY2023, driven by a $789,417 decline in the general fund. State revenue decreased $1,489,506 while federal revenues rose $2,423,523; total revenues increased $1,659,596 year over year. The Child Nutrition Fund net position declined $386,048, though child nutrition revenues rose $106,444.

Wicker pointed to two uncorrected misstatements in the financial statements: an overstatement of cash in account 11/1012 (which he said will be eliminated) and an understatement of commodities inventory of $1,764. He told the board auditors obtained a signed management representation letter and encountered no disagreements with management over accounting procedures.

Board action that evening included approval of two consent items: a personnel report and a sole-source purchase from Reality Works Incorporated. The board then voted to return to closed session "for matters related to personnel pursuant to North Carolina General Statute 143-318.11(a)(6)," the chair said.

The auditor concluded his presentation by offering to answer questions and thanking board members for the opportunity to serve the district.

Votes at a glance

- Consent items (personnel report; sole-source purchase from Reality Works Incorporated): motion made, seconded, approved by voice vote (counts not specified). - Motion to enter closed session under North Carolina General Statute 143-318.11(a)(6) (personnel): motion made, seconded, approved by voice vote (counts not specified).