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Independent auditors give Parkrose a clean opinion, note one federal-award noncompliance
Summary
Polly Rogers & Company issued an unmodified (clean) opinion on Parkrose SD 3's June 30, 2024 financial statements but reported an exception under state minimum standards and one federal-award noncompliance related to an ESSER indirect-cost calculation reversed with a $17,000 adjustment.
An independent audit presented to the Parkrose School District 3 board found the district’s 2023–24 financial statements fairly stated but identified a single federal-award noncompliance and one state-minimum-standards exception.
Tara Kim, partner at Polly Rogers and Company, told the board the firm issued an unmodified opinion—industry terminology for a clean audit—on the district’s financial statements. She said the audit found an exception under Oregon minimum standards (noted in the report) and one instance of federal-award noncompliance related to ESSER indirect-cost calculations.
During questions, district finance staff explained the ESSER finding: when preparing an estimate, staff applied an indirect-cost amount based on a year-end total instead of actual allowable costs for the grant period. The journal entry was overstated; the district reversed the entry and adjusted the grant by about $17,000. Finance staff said corrective-action steps were prepared and submitted to the state.
“Tara summarized it very well,” one board member said during the discussion. Audit staff also told the board they encountered no difficulties performing the work and had no disagreements with district management. The auditors thanked district finance staff for cooperating and for timely submissions.
Board members asked about the audit process and follow-up; audit staff described remote testing procedures, sampling of transactions, and year-end balance testing used to form the opinion. The auditors emphasized that the work is done to gather sufficient evidence that would stand up to professional standards.
The board did not take separate action on the audit at the meeting; finance staff said they would continue working with auditors and the cabinet on fund-balance and corrective measures.
The report will be posted with the district’s financial materials and is available to the board and the public; the staff said it is about 100 pages.
