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External auditors give Hobbs schools an unmodified opinion; board accepts audit and approves expenditures
Summary
Accounting and Financial Solutions presented the district’s fiscal 2023–24 audit; auditors issued an unmodified opinion noting a restatement under GASB 84 and two state-reporting findings. The board accepted the audit and approved routine expenditures and an individual scholarship fund transfer.
External auditors from Accounting and Financial Solutions presented Hobbs Municipal Schools’ fiscal year 2023–24 audit on Feb. 25 and delivered an unmodified (clean) opinion on the district’s financial statements.
Auditor Terry Ogle told the board the audit found the financial statements were not materially misstated and that the opinion is an unmodified opinion with no qualifications. The audit includes an emphasis of matter related to the application of GASB 84, which changed fiduciary reporting; the restatement tied largely to moving certain student-activity funds into special-revenue categories, representing a $533,000 restatement in presentation rather than a cash or spending discrepancy.
Ogle and firm partner William King (online) reviewed government-wide statements, subscription “right-of-use” assets, bond issues, pension and OPEB schedules and the schedule of federal expenditures. The auditors reported $16 million in federal expenditures for the district and said they tested multiple federal programs, including student-support and IDEA special-education programs, and reached no reportable compliance findings for those federal programs.
In state compliance matters, the auditors reported two noncompliance findings described as reporting issues. The auditors said one finding involved reporting a state cafeteria grant into the wrong fund code and the second involved missing background-check documentation in six personnel files (see HR article). District leaders said background checks were completed and that some records predated the district’s digital migration and a state vendor change.
After the audit presentation the board took two formal actions recorded in the meeting: the board voted to approve the district’s monthly expenditures, investments and a BAR (budget adjustment request), and the board took formal consideration and approval of the 2023–24 audit. A motion to release $2,035 from the Calderon Memorial Scholarship account to family trustees for private management also passed. The meeting record shows voice votes of "Aye" with motions carrying; no roll-call tallies were read into the record.
Auditors complimented district staff’s cooperation during the audit and staff said the state auditor has already accepted the audit; the board took a customary vote of acceptance as part of its transparency practice even though state law does not require local board approval after the state accepted the audit.
