Bethany Public Schools board accepts audit noting regulatory basis reporting, healthy carryover

Jeff Hewitt of Bledsoe, Hewitt & Gullickson, CPAs, told the Bethany Public Schools Board the district's financial statements are prepared on the State Department of Education's regulatory basis, not on generally accepted accounting principles, producing both a qualified opinion and an adverse opinion relative to GAAP. "The general fixed asset account group is not shown on the balance sheet," Hewitt said, calling that omission the basis for the qualification.

The presentation said the district's general fund showed expenditures about $1.7 million higher than revenues for the year and a general-fund balance that fell from roughly 6 million to about 4.3 million. Hewitt and business staff explained that federal revenues and prior COVID-era carryovers affect the calculation used to determine whether the district exceeds the state's penalty threshold.

In subsequent remarks, district business staff clarified the practical implications: COVID carryover funds elevated the available balance and the district does not count federal funds when reporting carryover for the State Department calculation. The business office reported an encumbrance level of about $17.4 million against an $18.4 million budget and projected a more typical carryover in the 3.2–3.3 million range if spending is disciplined and federal COVID funds are not available.

Board members asked questions about internal controls and the management letter; Hewitt said the audit identified no significant deficiencies and that remaining findings were routine purchase-order or activity-level suggestions. After discussion a board member moved to approve the audit for fiscal 2024–25; the motion was seconded and carried on roll-call vote.

The board also reviewed related financial reports during the same meeting and was advised staff will provide the audit acknowledgement paperwork for the record.