Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
ISD622 accepts 2024 audit: clean opinion amid six internal‑control weaknesses and missed filings
Summary
The school board accepted LB Carlson’s FY2024 audit showing a clean (unmodified) opinion but identifying six material weaknesses — including segregation of duties, untimely reconciliations and journal‑entry controls — and noting missed state and federal submission deadlines; auditors recommended corrective actions.
Jackie Heegelt, partner in charge at LB Carlson, told the ISD622 school board on Nov. 18 that auditors issued an unmodified (clean) opinion on the district’s basic financial statements for the year ended June 30, 2024, but found six material weaknesses in internal control and reported late submissions to state and federal systems.
"We issued an unmodified or a clean opinion on that basic financial statement," Heegelt said during the board meeting, and then outlined control weaknesses she said auditors had flagged: insufficient segregation of duties in finance, untimely or inaccurate reconciliations (cash, investments, payroll liabilities), material audit adjustments that would have materially misstated the financials without correction, inadequate controls over journal entries and budget‑entry processes, and missed regulatory reporting deadlines to state and federal systems.
The audit presentation showed the district ended FY2024 with about $40 million in general fund cash and a total general fund balance of roughly $41.4 million, with an unassigned fund balance equal to about 12.5% of expenditures — above the district’s 8–10% policy target. Auditors also reported increases in state general education and special‑education revenue and noted the district spent down most COVID‑era federal funds by Sept. 30, 2024.
Board members pressed auditors and finance staff about causes and follow‑up. Auditors said turnover in the finance office contributed to some control gaps and that corrective action plans must be filed with the Minnesota Department of Education and included with federal single‑audit submissions. The auditors said findings will be followed up in the next year’s audit.
The board moved to accept the audit report as presented by LB Carlson and approved the motion by voice vote. The minutes record a voice approval; no roll‑call tally was provided.
The district and auditors said a corrective action plan will be implemented and monitored; auditors will test progress in subsequent engagements.
