Centennial audit: clean opinion but school-level student-activity reconciliations flagged for improvement

Polly Rogers, the district's external audit firm, reported a clean audit opinion for Centennial School District's 2024 financial statements at the Feb. 12 board meeting.

Brian Thompson, the auditor presenting on Zoom, told the board the audit followed Generally Accepted Accounting Principles and auditing standards and that the firm issued no management letter because there were no significant deficiencies warranting one. Director Sotherton summarized the report, saying the district's net financial position improved by about $1.9 million compared with the prior year, though the net position remains negative when long-term liabilities such as OPEB and pension liabilities are included.

Both the auditors and district staff said school-level student activity accounts warrant closer attention. Sotherton noted that turnover among school principals and secretaries had caused delays in timely bank reconciliations and documentation for field-trip collections, activity fees and other student collections. He described the matter as an operational opportunity for improved practice rather than a material finding; Polly Rogers echoed that other districts sometimes show weaker documentation but commended the district's overall financial practices.

Board members asked whether auditors typically meet with the board without administration present; the auditors said they do not typically hold closed conversations with board members and emphasized transparency. The administration said it will continue monthly work with school secretaries to obtain reconciled bank statements and trial balances and to support timely documentation.

What the board heard: a clean independent opinion on the district's audited financial statements for 2024 and administrative follow-up to strengthen school-level internal controls on student activity funds.