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Auditors expect clean opinion but flag tax-limit and activity-fund issues
Summary
District auditors told the Gloversville City School District board they expect to issue a clean (unmodified) opinion on the district's financial statements but reported two items: year-end dollar adjustments and noncompliance with the 4% real property tax limit; they also reported no single-audit findings for major federal programs.
Chris Healy, an audit partner with Mango Metzger Bar/MFP, told the Gloversville City School District board that the district's financial statements are in draft but that the auditors expect to issue an unmodified (clean) opinion once minor tweaks are completed.
'We will be issuing an unmodified opinion or a clean opinion,' Healy said, noting the firm uses professional judgment and risk-based procedures to obtain reasonable—though not absolute—assurance of the financial statements.
Healy identified two reportable items. First, the auditors made several year-end dollar adjustments primarily related to cutoff of reconciling items such as accounts payable, accounts receivable and revenue. Second, he said the district exceeded the statutory 4% real property tax limitation and therefore is not in compliance with that requirement.
Healy also summarized the single-audit work required for entities that expend more than $750,000 in federal awards. He said auditors tested just over $10,000,000 of roughly $13,000,000 in federal awards (major programs this year included Education Stabilization Funds and Title I) and found no compliance findings related to those programs.
On the extracurricular activity funds, Healy said the auditors will issue a qualified opinion because those funds are maintained on a cash basis with substantial cash handling that limits the auditors' ability to determine whether all receipts were deposited.
The board was told final audited statements are expected to be filed with the state by the filing deadline once minor adjustments are completed. Healy offered to answer any questions from the board following his presentation.
