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Fridley auditors issue clean opinion; board hears controls and fund-balance concerns
Summary
Independent auditors gave Fridley Public School District an unmodified opinion on its 2024 financial statements but reported a lack of segregation of duties and a $2.3 million decline in the general fund balance; the board approved the audit report.
An independent audit firm presented the Fridley Public School District’s fiscal 2024 audit and issued an unmodified opinion, indicating that the district’s financial statements “present fairly in all material respects,” the auditor told the school board.
The auditor warned the board about one internal-control finding: limited staff in the finance office has led to overlapping duties, increasing the risk that errors or irregularities could go undetected. “We recommend that you remain aware of the situation and be diligent in the reviews that you are doing,” the auditor said, noting monthly budget-to-actual reviews and approval lists as key compensating procedures.
The audit report also covered compliance testing. The auditor said there were no instances of noncompliance under government auditing standards, no findings under Minnesota legal-compliance tests, and an unmodified opinion for major federal programs, including education stabilization and special education.
The presentation included trend charts showing student counts (resident ADM) and pupil-unit changes used to compute state aids. The auditor reported a $2.3 million decrease in the general fund balance for fiscal 2024. Revenues were about $138,000 under budget overall; expenditures exceeded budget by roughly $1.3 million. The auditor called out higher-than-expected transportation costs, unbudgeted technology purchases (partly offset by other financing sources), and project work completed ahead of schedule.
Superintendent Lewis and board members thanked the audit team for their work. After the presentation the board moved and approved the audit report by voice vote.
The board was also given several fund-level details: state sources constituted about 76% of general fund revenue; general fund expenditures rose about 3.4% year over year; special education staffing costs increased by about $1.6 million; and the district’s unrestricted fund balance stood at about 6% of annual expenditures, slightly below the district policy target of 7%–10%. The auditor noted COVID-era grant timing and carryovers as factors affecting revenues and expenditures.
Board members did not debate new corrective actions on the record beyond the auditor’s recommendation to strengthen compensating review procedures and to monitor the community service fund, which showed a continuing deficit for a restricted program.
The board formally approved the audit results later in the meeting.
