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Oak Grove audit shows clean opinions but warns reserve ratio fell to about 12.6%
Summary
The districtaudit presented by Westbrook & Company gave unmodified opinions on financial statements and federal awards but highlighted a drop in reserves (about 21% in 2022 to 12.6% now) and an operating funds deficit of roughly $628,000; auditors said the federal single-audit remains a draft while compliance supplements are pending.
Brad Steele of Westbrook & Company told the Oak Grove R-VI school board that auditors issued unmodified opinions on the district—s financial statements and federal awards but could not complete the federal single-audit until the U.S. government issues its annual compliance supplement. "The draft doesn't have hardly any changes," Steele said, adding that none of the dollar figures in the audit are expected to change.
The audit showed the district's reserve ratio fell from about 21% in 2022 to 12.6% in the most recent report and the operating funds (general and special revenue) ran a combined deficit of roughly $628,000. "You've got 4 funds," Steele explained while reviewing the balance-sheet structure, noting that capital projects, debt service and special revenue funds carry legal restrictions on how money can be spent.
Board members pressed for public explanation of the charts showing local revenues and spending, and a trustee asked what a healthy reserve ratio would be. Steele said his firm typically likes to see reserves at or above 20% and that some districts set targets between 18% and 25%.
Administrators told the board they had used federal COVID-era funds in prior years and had placed — then failed — a tax-levy initiative in April; the district later secured a transfer in November that partially eased cash pressures. The superintendent noted curriculum investments and one-time pandemic dollars helped create temporary reserve spikes. "We dumped it all into our general fund," a board member said of federal COVID funds.
Auditors reported no material weaknesses or significant deficiencies in internal control and no findings in major federal programs tested (Title I and the Special Education cluster). Steele recommended the board continue to monitor reserves and financial controls as the district moves past one-time federal funding and implements its remaining capital projects.
The draft audit will come back to the board for approval once the federal compliance supplement is released and the single-audit work is finalized.
