Board accepts auditor's unmodified opinion; student activity fund compliance noted

The Alexandria Public School District board accepted the annual audit after auditors from AMBEL presented an unmodified opinion and several findings that the district will address.

Tom Willinger, a governmental services partner with AMBEL, introduced Kelsey Larson, the audit manager, who reviewed audit responsibilities and results. Larson said the auditors issued an unmodified opinion that the district's financial statements were presented fairly. She noted the district spent more than $750,000 in federal grant dollars this year, which required a single audit; auditors tested two programs and found no instances of noncompliance in those samples.

Larson summarized recurring findings: auditors prepared the financial statements for the district's review; the district continues to show "limited segregation of duties" because of a small finance staff; and there were year‑end audit adjustments. The Minnesota legal compliance finding centered on student activity funds: UFARS Chapter 14 requires a purpose summary for each student activity that must be renewed annually and signed, and the board must receive a yearly summary of receipts, disbursements and balances. Larson said those purpose summaries or signatures were missing in some cases.

Board members and auditors discussed mitigation steps, including compensating controls such as finance committee review and second reviews of transactions. Superintendent Rick Sandstead noted the district has had several leadership transitions, including principals and a finance director, and said the district has posted the finance director position and expects to interview in the winter.

A motion to accept the audit as presented was moved and seconded; the board voted in favor and the motion carried. The board and auditors agreed to follow up on student activity fund documentation and to consider controls that do not require adding multiple new staff positions.