Poteau board acknowledges auditor exit report; no federal findings noted

The Poteau School District Board on Monday heard an auditor exit presentation from Jenkins and Kemper CPAs and approved an audit acknowledgement form authorizing the firm to finalize the district's audit file.

Caleb Carlson of Jenkins and Kemper told the board that "Poteau gets an adverse opinion on generally accepted accounting principles because as a public school, you follow a regulatory basis of accounting rather than GAAP." He also noted the district received a qualified opinion on the regulatory basis and that there were "no findings for major federal award" in the report.

Carlson walked the board through the report pages he referenced and said staff could sign an audit acknowledgement form either that night or send it later through the office manager. The board moved to approve the audit acknowledgement and recorded affirmative roll-call responses.

Board members did not ask for additional substantive clarification during the presentation; Carlson closed by offering to receive the signed form that evening or from the office manager later. The board's approval allows the auditors to complete administrative steps required to issue the audit package.

The auditor's description distinguishes between a regulatory basis of accounting (the district's chosen reporting framework) and GAAP (generally accepted accounting principles), which is why the report language includes both a qualified regulatory-basis opinion and an adverse GAAP statement. Carlson said that distinction, and the report shows no material federal-award findings.

Next steps listed on the agenda included staff preparing and submitting the signed acknowledgement to Jenkins and Kemper so the audit can be finalized.