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Brainerd School Board accepts 2023–24 audit; auditors issue clean opinion, note one material weakness
Summary
External auditors presented the district's 2023–24 audited financial statements, describing an unmodified (clean) opinion and one material weakness related to financial statement preparation; the board voted to accept the audit report.
The Brainerd School Board voted on Feb. 10, 2025, to accept the Brainerd Public Schools 2023–24 annual audit after a presentation from the district's external auditors. Mary Reedy, identified in the meeting as the lead auditor, told the board the auditors issued an unmodified — commonly called a "clean" — opinion on the district's financial statements but noted one material weakness related to the preparation of the financial statements.
Why it matters: An unmodified opinion indicates the auditors found the financial statements fairly presented in all material respects. The identified material weakness — the auditors drafting the financial statements on the district's behalf and limited time for management review — is a control finding the district must address to strengthen internal accounting procedures.
What auditors said and board action
Lead auditor Mary Reedy said the audit includes testing of internal controls, federal award single‑audit procedures for programs exceeding $750,000 and Minnesota legal compliance checks. "We issued an unmodified or clean opinion," Reedy said during her presentation. She noted the audit team prepared the financial statements and that the district's staff performed a detailed review; the auditors recorded that as a material weakness over financial statement preparation.
The auditors highlighted several financial metrics: the district's net change in fund balance was positive for the year; unassigned general fund balance rose and was reported at approximately 16% of expenditures (the district policy target noted in the presentation is 10%). Auditors also noted federal Education Stabilization Fund testing without findings and no Minnesota legal compliance findings.
The Board moved to accept the audit report as presented and approved the motion in a roll‑call vote. The recorded affirmative votes included John Ward, Sue (Michelle) Brecken, Stephanie Ederman, Randy Heinemann and Sarah Spear. The motion carried.
