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Audit flags three material weaknesses in Kohler School District financial controls
Summary
The district’s 2024–25 audit returned a clean opinion but identified four findings, including three material weaknesses tied to audit adjustments, delayed bank deposits and revenues, and untimely monthly reconciliations; auditors have notified DPI and will work with the district on corrective steps.
The Kohler School District received a clean audit opinion for the 2024–25 school year, but auditors reported multiple problems in the district’s financial controls that the board acknowledged during its finance committee report.
Tara (board member) summarized the finance committee briefing, saying auditor Dave Haman presented four findings: a recurring significant deficiency in internal control caused by a small business office, a material weakness related to 104 audit adjustments (several exceeding the $80,000 materiality threshold), a material weakness over timely bank deposits and revenue recognition, and a material weakness for untimely monthly bank reconciliations. The audit firm has filed its report with the Department of Public Instruction (DPI) and may request updates on corrective efforts.
"We learned we had 104 audit adjustments," Tara said during the finance committee report, and the board heard that several adjustments exceeded the $80,000 threshold that triggers a material-weakness finding.
Board members described the recurring significant deficiency as driven largely by limited staffing in the district business office: the audit firm completes much of the district’s paperwork, which the presenter said makes that finding common among small districts. The material weaknesses for deposits, revenue recording and reconciliations were described as more unusual and prompted the auditor to work closely with the business office and an external consultant to address processes.
Superintendent Mike noted the district will continue working with auditors and a business-office consultant to address the findings for the 2025–26 school year. The audit report will be posted on the district website.
Board members did not take formal corrective-action votes at the meeting; the finance committee and auditors will follow up with recommended changes and reporting to DPI. The board said it looks to superintendent leadership and the business office consultant to implement process changes and report progress at future meetings.
