External auditor gives district clean opinion but flags controls, recommends FY25 amendment after fraud and large fund transfers

An external audit of Proviso Township High School District 209 found the district’s FY24 financial statements materially reliable but identified several internal-control weaknesses and recommended administrative actions, including an amended FY25 budget and stronger reconciliation procedures.

The auditor, identified in the meeting as Dr. Hill, told the Board on March 11 that the firm issued an unmodified (clean) opinion on the district’s audited financial statements, the Illinois State Board of Education annual financial report and the schedule of expenditures of federal awards. “An unmodified audit opinion is the highest level of assurance that you can receive from your external auditor,” Dr. Hill said.

The audit highlighted three substantive issues for board attention. First, auditors noted a significant transfer of $50,000,000 into the capital projects fund during FY24. That transfer remediated a previously reported deficit of about $13,800,000 in the capital projects fund but also materially changed fund positions.

Second, the audit documented a wire-fraud incident during the year. Dr. Hill said the district and its banks, and the district’s insurers, recovered some funds; an insurance claim resulted in a recovery of roughly $1,900,000 that was paid back to the district in February. Because some insurance proceeds were not…