Gadsden finance staff present unaudited 2023–24 annual financial report; board weighs continuing consultant contract

Gadsden County School District finance staff presented the district's unaudited Annual Financial Report (AFR) for fiscal year 2023'24 and asked the school board to consider continuing a consultant contract to complete cleanup work and assist with next-year reporting.

Director of finance Ms. Bruner told the board that, per the AFR discussion and analysis, "the general fund unassigned fund balance was $2,800,000 or 6.7% of the total general fund revenues." She said that increase reflected, in part, the "utilization of ESSER funds" and stressed the AFR figures are a closing snapshot for 2023'24 that may change as auditors review prior-year items and as the district finishes reconciliations for 2024'25.

Why it matters: the unaudited fund-balance number determines the starting point for the district's 2024'25 budget and can change if auditors require prior-year adjustments. Ms. Bruner told the board the Auditor General's review could prompt edits and that the district has the ability to make prior-year adjustments or return funds if audit findings require it. She also said the district must complete the ESSER reconciliation and several indirect-cost filings before finishing the 2024'25 AFR; the completion deadline cited was Sept. 11 (date given in the meeting).

Key details and next steps

- Fund balance and audit timing: Ms. Bruner said the unaudited general fund unassigned balance for 2023'24 was $2.8 million (6.7% of general fund revenues) and cautioned that the Auditor General's office may request changes after a review. She told the board the auditors "anticipate it will take them 4 to 8 weeks on the long end" to complete their review and that final audited figures could differ from the current AFR submission.

- Scope of adjustments: Ms. Bruner listed typical factors that can change the closing fund balance, including outstanding purchase orders, encumbrances such as salaries, and conference expenses. She said the district can make prior-year adjustments in its financial system and would bring the Auditor General's final report to the board before making any corrective transactions that affect board-controlled processes.

- Consultant contract and staffing: the packet included a proposed renewal of the contract with consultant Kathy Sneads, who prepared the AFR and has been performing several cleanup and support tasks. Ms. Bruner said the request seeks the "exact same amount" as the current contract (the amount was discussed in the meeting packet but not specified during the public discussion). Board members were split: some argued the finance office should "bite the bullet" and do the work internally now that staff have had time to train, while others said the consultant's work was still needed for reconciliations, staff training, policy and procedure development, and to provide an added layer of technical expertise.

- Hiring an assistant director: the superintendent and several board members said the district plans to hire an assistant director of finance; they described that hire as a step toward reducing reliance on the consultant. Ms. Bruner and others said certain duties now performed by the consultant would transition to the assistant director, the budget manager or other finance staff over time, while high-complexity tasks (for example, AFR compilation and some external accounting functions) may remain outsourced or subject to periodic external review.

- Consultant'task list: the consultant's scope (identified in the contract packet as section 2.d) includes assistance with AFR preparation, account reconciliations, certain deadline-driven reports, Skyward data input (as permitted by checks and balances), balancing financial records, indirect cost planning, federal project fiscal monitoring and closeout, board financial reports, staff training, and the development of written policies and procedures. Ms. Bruner said some items already sit with district staff, others will shift as the assistant director is hired, and several items likely will remain subject to outside review for fraud-prevention and technical depth.

Board oversight and accountability

Board members asked how and when the board would see adjustments if auditors required them. Ms. Bruner said the district would present the Auditor General's final report to the board before executing prior-year corrections. Multiple board members pressed for clearer timelines and more-documented procedures for month-to-month reconciliations at school sites, improved grant drawdown processes, and a plan for training office managers so end-of-year auditing is less time-consuming in future years.

What the board decided and what remains

There was no formal recorded vote on the consultant contract or other AFR actions in the transcript segments provided. The superintendent described a plan to hire an assistant director soon and to "wean" the consultant's role toward periodic review and targeted assistance rather than ongoing data entry. Ms. Bruner said detailed monthly records exist of the consultant's work for board review. The district will finish ESSER reconciliation and submit the AFR to the Auditor General; the final audited report may change the unaudited fund-balance figure presented to the board.

Ending

The district's immediate steps are to complete the ESSER reconciliation and indirect-cost filings, continue auditors' requests, and proceed with hiring the assistant director of finance. The board will receive the Auditor General's final report before any corrective transactions or transfers driven by audit findings.