Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Bethany Public Schools audit finds regulatory presentation, strong carryover; board approves audit
Summary
The district's new auditors presented the 2023–24 audit, noting regulatory‑basis presentation (not GAAP), a robust general-fund carryover of about $6 million, an unmodified federal-program opinion, and management-letter items including activity-fund deposit timing, Davis‑Bacon documentation, and annuity-investment questions. The board approved the audit by roll call.
Chris, the district's external auditor, presented the 2023–24 audit and told the board the district’s financial statements were presented fairly on the state’s regulatory basis but not on generally accepted accounting principles (GAAP). He said the audit included three reports — an independent auditors’ opinion, an internal-control/compliance report, and a federal‑award compliance report — and that the federal program report received an unmodified opinion, the highest available.
The auditor flagged a large general‑fund carryover of roughly $6,042,000 and described it as “outstanding,” while cautioning that districts can face penalties if carryover exceeds statutory thresholds; those penalties have been waived in recent years, he said. He also highlighted that about 55% of the district’s federal expenditures during the year were COVID‑related and that the federal reimbursements timing affects year‑end carryover figures.
The auditor walked the board through management‑letter observations including a recommendation that cash from activity accounts be deposited daily (state law allows weekly deposits under $100 but daily deposits are safer), more thorough travel documentation, stronger controls around activity‑fund cash handling, and better payroll documentation for contractors when federal construction funds are used.
On Davis‑Bacon payroll documentation, the auditor said the district had obtained contractor affidavits asserting prevailing‑wage compliance but that, ideally, weekly contractor payroll records would have been collected during performance. He told the board, “In a perfect world, you should have gotten payroll records every week and then that extra checking to make sure they did.” He recommended discussing compliance steps with legal counsel and noted the state appeared to be accepting current affidavits.
The auditor also raised a question about certain annuity investments held through a private provider; he advised the district to consult its attorney to confirm whether those instruments comply with the narrow investment options allowed for school districts.
After discussion, Speaker 8 moved to approve the 2023–24 audit and Speaker 9 seconded. The board conducted a roll‑call vote and recorded affirmative votes from Jaggers, Homer, Ballstead and Pettit; the motion carried.
What happens next: staff said they will follow up on the management‑letter recommendations (activity‑fund deposit practices, travel documentation, contractor payroll evidence and legal review of investments) and incorporate any corrective steps into financial procedures and future audits.
Sources: Presentation and discussion by the auditors as recorded in the board meeting transcript. Vote recorded during the meeting.
