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Independent audit delivers unmodified opinion; auditors flag segregation-of-duties concerns
Summary
IVD auditors reported an unmodified (clean) opinion on Bennington Public Schools' 2024-25 financial statements, noted three audit adjustments and required a single audit after federal spending exceeded $750,000; auditors repeated a control comment on segregation of duties and cautioned about auditors assisting with internal controls.
An independent audit summary presented Monday concluded Bennington Public Schools' 2024-25 financial statements received a clean (unmodified) opinion, but the auditors also issued repeat comments on internal-control weaknesses related to segregation of duties.
Justin Cole, substitute auditor from IVD, said the financial statements were prepared on the modified cash basis and that the firm recorded three audit adjustments during its procedures, including reclassifying certain tax revenues and transfers and reconciling county cash. "If you have a clean or an unmodified opinion, this is the best result you can get out of a financial statement audit," Cole said, describing the opinion and the adjustments.
Because the district expended more than $750,000 in federal funds during the year, it was subject to a single audit focused on compliance; Cole said the IDEA cluster was the major program and represented about 43% of total federal dollars. The auditors reported total federal dollars of about $1,600,000 for the district and noted the compliance supplement they use for testing was in draft form, which affects final reporting timing.
On internal-control matters, IVD repeated a comment about segregation of duties: a relatively small number of staff handle financial transactions from start to finish, which increases risk. The auditor noted that committee and board oversight mitigates some risk but that the condition is a recurring comment compared with prior years. The auditor also cautioned that when the district asks the auditors to assist in drafting schedules (for federal award expenditures), the auditors cannot simultaneously be part of the district's internal control processes.
Board members thanked staff for their work to prepare for the audit. Staff credited business-office efforts and said the comments were not unusual for a district of this size.
What happens next: the district will finalize single-audit reporting when federal compliance guidance and the compliance supplement are finalized and will continue to address segregation-of-duties risks through oversight and committee review.
