External auditor issues clean opinion; one repeat Minnesota compliance finding and federal single-audit timing noted

External auditor Craig Pope told the Red Wing Public School District board that the district received a clean opinion on its financial statements and no internal-control findings, but that a repeat Minnesota legal-compliance finding related to long-outstanding reconciling checks remains.

Pope said the compliance finding is an update of last year’s issue: outstanding reconciling checks that previously totaled more than $29,000 are now reduced to $147. "That is a very good progress made during this audit cycle," he said. He explained that clearing those items typically involves canceling the old check and reissuing payment to the vendor.

The auditor also addressed federal single-audit timing: due to a delay in final federal guidance, the district’s federal compliance audit cannot be completed tonight and will be issued after the guidance is released. Pope said the Department of Education guidance requires the financial audit be submitted by Dec. 31 and the federal compliance audit no later than March 31.

Board procedure: Because federal compliance testing remains pending, the board cannot approve a final audit tonight; members discussed scheduling a brief special meeting solely to approve the completed audit once federal guidance and the single-audit procedures are complete. The auditor confirmed staff will provide the presentation materials and supporting schedules to the district for distribution.

Financial highlights cited during the presentation included general fund revenues of roughly $40.9 million and general fund expenditures of about $37.3 million; the auditor highlighted that about 79% of the general fund is devoted to instruction and student support.

Next steps: District staff will schedule a short special meeting to approve the final audit when federal compliance materials are available; staff also agreed to share the audit presentation with board members by email.