Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Auditor gives Frederic School District an unmodified opinion; board hears funding and reserve details
Summary
The district's independent auditor reported an unmodified opinion on the financial statements and reviewed fund balances, federal and state aid totals, long-term debt and recommendations about internal controls; the board voted to accept the audit.
Brandon of 2 Rivers Accounting told the Frederic School District board that the independent auditor's report contained an unmodified opinion on the district's financial statements, meaning the statements were presented in accordance with generally accepted accounting principles.
The auditor summarized key figures and compliance findings, noting no compliance findings on major federal programs and a general fund unassigned balance equal to 16.7% of general fund expenditures. Brandon said the district ended the year with general fund revenues of $8,263,005.69 and expenditures of $8,000,001.98, and pointed to cash and investments of roughly $672,000 and taxes receivable of about $1.3 million.
"You received an unmodified opinion on your financial statements, which is the highest level of financial reporting you can receive," Brandon said, explaining the auditor's role and the meaning of the opinion.
The presentation covered special revenue funds, the food service fund and a transfer of roughly $93,006 into food services for the year; the auditor noted that many districts have required transfers post-COVID. On long-term obligations, Brandon noted outstanding referendum-related bonds and other long-term liabilities and observed that the district was using only about 6.1% of its general-obligation debt limit, a sign of relatively low debt burden.
Board members asked questions about single-audit thresholds and federal funding. The auditor said the federal single-audit threshold has risen to $1,000,000 and, with current funding levels, Frederic School District was likely to fall below that threshold going forward unless it receives significant new federal grants.
After the presentation, a board member moved to accept the audit report and the board approved the motion by voice vote.
What this means: an unmodified opinion and no federal compliance findings are routine but important signals for local taxpayers and lenders. The board heard that the district's reserve ratio (unassigned fund balance to expenditures) is below the 25%–33% range often cited as best practice, at about 16.7 percent, which trustees and staff noted as a point to monitor when planning future budgets.
The board will incorporate the auditor's findings and recommendations into budgeting and internal-control follow-up work; the report will be available with the district's official meeting materials.
