Wentzville R-IV board approves FY2025 audit despite sampling limitations; auditor reports clean opinions

The Wentzville R‑IV Board of Education voted to approve the fiscal year 2025 independent audit as presented, despite the audit firm initially failing to appear at the meeting and auditors noting the statutory limits of sample-based testing.

District staff told the board the audit firm had not been present earlier but that the audit still needed board approval to meet the Missouri Department of Elementary and Secondary Education (DESE) submission deadline. The board later heard directly from the audit firm's representative, who said, “We have 4 clean audit opinions. We had no issues with internal controls,” and that sampled testing found the district's financial statements to be representative.

Board members pressed for details after the report showed one fund had been spent in excess of appropriations. District staff said the overspend resulted from a bond defeasance that had been executed but not properly booked in the district's financial software; a board member estimated the difference at about $180,000, described in the meeting as under half a percent of the budget. Staff characterized the error as a booking/management issue rather than a reporting inaccuracy and said adjustments are made at the June budget meeting when final figures are reconciled.

Auditors explained the nature of their work and its limits: they test a statistical sample of invoices and payroll items rather than every transaction. “We test a statistical sample,” the auditor said, noting sample sizes typically run about 40 invoices for larger populations and vary by total transaction population. The auditor told the board they had previously performed additional testing at the board's request without increasing the district's audit cost, but that a full forensic audit would be required for exhaustive, transaction-by-transaction review.

Board members sought assurance the district complies with DESE audit requirements. The auditor said the work performed met DESE's guidance (including single-audit and Yellow Book considerations when applicable) and that prior issues cited in management letters — including a transportation reporting issue from a previous year — have been addressed. Staff reminded the board that if final audit documents and signed minutes are not submitted to DESE by Dec. 31, state payments may be withheld until the audit is received.

The motion to approve the FY2025 audit passed on a roll call vote; board members voting in the roll call were recorded as supportive and the item was entered as approved. Board members also discussed scheduling the auditor for an additional meeting in January to field further questions even though the audit itself had to be approved for DESE submission.

The board will submit the approved audit and required signatures to DESE; staff said signed minutes showing the board's approval can be filed after the minutes are finalized next month.