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Oakland Avenue Charter School receives clean audit, one significant deficiency noted
Summary
Independent auditors issued an unmodified opinion on Oakland Avenue Charter School’s FY2025 financials but flagged one significant deficiency in segregation of duties; school posted a $151,000 favorable net variance despite a $93,000 expenditure overrun.
Pervis Gray auditors told the Town of Oakland Commission on Oct. 14 that Oakland Avenue Charter School’s fiscal year ending June 30, 2025 financial statements received an unmodified (clean) opinion.
Tiffany Mangold, audit partner with Pervis Gray, said auditors found no material weaknesses but identified one significant deficiency related to segregation of duties — a common finding for small operations where a single employee performs overlapping financial functions. Management has implemented detective controls and the auditors expect the issue to be addressed in next year’s audit.
Mangold said the school overexpended its budgeted expenditures by $93,000, but revenues offset that overspending, producing an overall favorable budget variance of about $151,000 and an ending fund balance of $1.1 million; the unassigned fund balance represented roughly 17% of total expenditures and revenues, about two months’ operating cushion. The auditors noted a $440,000 reduction in federal ESSER funding compared with the prior year, partially offset by increased state and local funding tied to enrollment.
The auditors reported no instances of noncompliance and that a prior-year finding on year-end close procedures had been resolved with assistance from an outside CPA. The auditor general’s management letter included no additional matters requiring communication to governance beyond the segregation-of-duties comment.
The Commission thanked the audit team and school management; auditors said a budget amendment for FY2025–26 would be prepared to address revenue/expenditure reallocation at the school board’s next meeting.
