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Board hears 2024 audit: district uses state-required modified cash basis; auditors flag activity-fund controls
Summary
Auditors from PSAB CPAs presented the Cherokee Public Schools 2024 financial audit, noting the district uses the staterequired modified cash basis (not GAAP) and identifying recurring control weaknesses in school activity funds. The board approved the audit.
Auditors from PSAB CPAs presented Cherokee Public Schoolsdistrictfinancial audit for fiscal year 2024 and the board voted to approve the audit as presented.
Auditor Jay, representing PSAB CPAs, told the board the districtreceived a regulatory-basis financial statement opinion rather than a full GAAP presentation because the district uses the state-required modified cash basis. "We show it in a modified cash basis which is required by the state of Oklahoma," Jay said, adding that the presentation differs from generally accepted accounting principles for items such as long-term fixed assets and depreciation.
The auditors also described the federal single-audit threshold that determines the level of federal compliance work. Jay said the district spent $715,000 in federal awards during the year, below the $750,000 threshold that would trigger the more extensive uniform guidance single-audit procedures. "If you'd spent over 750,000, we would have had 3 letters," Jay said.
Board members were shown summary financials: general-fund revenues of about $4.5 million and expenditures of about $4.47 million for the year, resulting in an overall increase reported by the auditors of roughly $81,000 and an ending general-fund unassigned balance of about $1.5 million and a total fund balance reported at about $1.8 million. The auditors reviewed special revenue and trust/agency activity, noting building fund, child nutrition, and activity-account balances. The child nutrition fund was shown with an operating decrease and an ending balance reported by the auditors of about $54,000 after adjustments for prior-year encumbrances.
The audit report included the auditorsinternal-control letter and discussion of recurring weaknesses in activity accounts. Jay described typical problems he encountered across schools: sponsor turnover, late deposits, and inconsistent recordkeeping for activity-account receipts and deposits. He urged adherence to procedures requiring timely deposits and clear documentation so funds can be traced and accounted for.
The board voted to approve the 2024 audit as presented. The auditors recommended stronger controls over activity funds and standard, timely procedures for receipts and deposits.
The presentation also included a review of long-term debt schedules and retirement contributions. Bond principal amounts and lease-purchase obligations were summarized in the auditorsnotes to the financial statements; the audit package includes those schedules and additional notes to the financial statements for board review.
Board action: the board approved the audit (motion and second recorded; vote recorded in the meeting minutes).
