River Falls audit receives unmodified opinion; board approves Baker Tilly as next auditor

The River Falls School District’s Finance & Facilities Committee reviewed the annual audit covering the fiscal year July 1, 2023–June 30, 2024 and reported an unmodified opinion from CliftonLarsonAllen (CLA), the auditing firm that conducted the review. Committee members said the audit returned the highest-level opinion a district can receive.

Lynette, who led the finance briefing to the committee and board, said auditors noted two main issues: routine proposed adjustments — common in school-district audits — and an unusual depreciation restatement. The depreciation matter, she said, stemmed from a software error at the auditor that produced an incorrect depreciation calculation in a prior year; auditors recommended a beginning net-position restatement for 2023–24 to correct the carryforward amount.

The audit summary also reflected timing of federal grant reimbursement. Staff told the board the district had recorded a “due from other governments” related chiefly to federal ESSER funds that were spent in advance of receipt and later reimbursed; the dollar figure discussed at the meeting was $3,061,000. Committee members explained that the timing of grant claims at year‑end can create a temporary receivable.

The committee reviewed fund-balance and debt items included in the financial statements: combined general fund reporting (district funds 10 and 27), the district’s capital project activity tied to a recent bond/note issue, and long‑term obligations that include a $28 million referendum entry on the financial statements.

After vetting audit results and references from other districts, the board approved a recommendation to engage Baker Tilly US LLP as the district’s auditor beginning with the year ending June 30, 2025. The board’s motion to engage Baker Tilly was made and seconded during the open meeting and passed without opposition.

Board members discussed why the district solicits proposals for professional services and emphasized the value of rotating auditors periodically to get fresh perspectives; district staff explained that the Wisconsin Department of Public Instruction maintains a roster of eligible auditing firms and that firms must meet DPI criteria to be eligible for school audits.

Provenance: Financial and audit discussion begins at s=3340.195 and continues through the Q&A about auditors and the Baker Tilly engagement around s=5004.42.