District audit issues unmodified opinion; auditors say booster clubs fall outside scope

The district's external auditors, RS Abrams, reported an unmodified opinion on the Sewanhaka Central High School District's financial statements for the year, telling the board the audit found no material weaknesses in internal control.

"We issued an unmodified opinion," the auditor said, adding the audit reflected implementation of Governmental Accounting Standards Board Statement No. 101 on compensated absences. The auditor said the district's unassigned fund balance stood at 3.98 percent of next year's budget and noted the district was "right in line" with the 4 percent informal threshold cited in the financial discussion.

Board members asked for clarification about extracurricular and student activity accounts after noting some club accounts appeared absent from the audit schedules. The auditor said the firm receives the district's accounting data and that school-based accounts ordinarily appear in the computerized system if they are district-chartered student activity accounts.

When a board member asked whether booster-club funds are audited by the district, the auditor replied that booster organizations are separate nonprofit entities and are not part of the district audit: "The Booster Club is a separate organization that we do not audit. . . . They're considered a 501(c)(3)."

The auditor thanked district business office staff by name for timely cooperation and said there were "no recommendations to improve the district's internal controls" arising from the engagement.

Board members did not take separate action on the audit report at the meeting; the presentation proceeded to routine business.