The Show Low Unified School District governing board unanimously accepted the district's 2024 audit after a presentation from the district's external auditor, Karen Smith, who said the report included an "unmodified opinion." The board accepted the audit by roll call at the meeting.

Smith, who presented the audit remotely, told the board the district's 2024 financial statement audit produced an unmodified opinion, and that the single-audit (federal programs) returned no findings. She said the district's Uniform System of Financial Records (USFR) compliance questionnaire contained a small number of deficiencies but far fewer than in prior years, reflecting corrective actions taken by district staff.

The audit presentation outlined three documents attached to the agenda: the annual financial report (including financial statements and notes), the single-audit (federal programs) report and the USFR compliance questionnaire. Smith said field work began in October and the 2024 audit was issued in December, several months earlier than the prior year. She explained that an unmodified opinion means auditors were able to opine on the financial statements without requiring a modified or disclaimed opinion.

Smith identified common compliance areas tested by the USFR questionnaire, including procurement, payroll, capital assets, attendance and conflict-of-interest procedures. She said prior-year issues, including a credit-card misuse matter that was prosecuted by the Navajo County Attorney's Office, were corrected by the time of audit issuance. Remaining findings included a small number of documentation or process issues (examples cited: one purchase where a required quote was not obtained, minor payroll and fingerprint-clearance items, and IT security awareness training).

Superintendent Dr. Michael Farnsworth credited district staff for corrective action and stronger internal controls. Smith reminded the board that state statute requires the governing board to accept the audit and that the acceptance must be recorded by roll call.

The board then conducted a roll-call acceptance. Board member Paul Wyatt and Board President John Larson were recorded as voting in the affirmative; the clerk announced the acceptance as unanimous.

The auditor said the district's major federal programs for the 2024 audit included ESSER and Title I; she noted that ESSER was winding down and that major programs tested may shift in future audits. Smith said the single-audit requirement applies when federal expenditures meet the OMB threshold and that the threshold will change for the next fiscal year.

Next steps described by the auditor included the district's ongoing work to maintain procedures, prepare for the FY25 audit cycle (fieldwork likely in October) and continued attention to the few remaining compliance items.

Ending: The board recorded acceptance of the 2024 audit and moved on to the rest of its agenda. The district will continue corrective steps and expects to bring the FY25 audit to the board in the coming year.