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Adams 12 auditors issue unmodified opinion; single-audit finds no federal problems
Summary
CLA auditors told the board they issued an unmodified (clean) opinion on Adams 12's FY2024 financial statements and found no findings in the federal single audit, including testing of IDEA and an Emergency Connectivity Fund program used for Chromebooks.
John Paul Lechavaglia, the engagement leader from CLA (CliftonLarsonAllen), told the Adams 12 Five Star Schools board that auditors issued an unmodified opinion on the district's fiscal 2024 financial statements after completing standard audit procedures.
The audit partner said the firm's work provides reasonable — not absolute — assurance that the financial statements are free of material misstatement. "We did issue what is referred to as an unmodified opinion," Lechavaglia said, adding that the district's records were "well organized" and that no material weaknesses or significant deficiencies were identified.
Why this matters: an unmodified opinion indicates auditors did not find material misstatements after adjustments and review. That helps bond-rating analysts, creditors, and residents rely on the district's published statements when assessing fiscal health.
Lechavaglia said the firm also completed the federally required single audit for entities receiving more than $1 million in federal awards. "The district received approximately $48,700,000 in federal awards for fiscal year 2024," he said, and auditors tested the special-education (IDEA) cluster and the Emergency Connectivity Fund program (used mainly to buy Chromebooks). "We did not have any findings as part of the single audit," he told the board.
The auditor noted the FY2024 implementation of a new auditing standard that expanded procedures related to information systems. As a result, CLA made several IT-related "best practice" recommendations about cybersecurity policies, backup testing, and disaster-recovery procedures, but said none rose to the level of a material weakness or a single-audit finding.
Lechavaglia stressed the limited scope of the auditor's judgment: the audit reviews financial presentation and compliance for tested federal programs but is not a fraud examination. "We do review to see if there's any potential misstatements due to fraud, but that's not a significant focus of the audit," he said.
CLA also described its internal quality controls for the engagement, including in-team reviews, a firm-level independent inspection, and an external peer review every three years. Board members asked whether implementing the IT recommendations would require significant new spending; staff said the recommendations mainly involve documenting and testing existing procedures and are not expected to materially change the budget.
Next steps: CLA will deliver the formal governance letter and the audit report to the board; staff will consider the IT recommendations and incorporate appropriate follow-up in their work plans.
