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External audit shows repeated material weaknesses; board approves 2023–24 audit
Summary
Manning Accounting delivered an unmodified audit opinion for Grants‑Cibola County Schools but identified repeated material weaknesses in internal controls (cash reconciliations, purchase orders, fixed assets, payroll liabilities); after discussion the board approved the audit and asked administration for regular updates on corrective actions.
The Grants‑Cibola County Schools board received a detailed presentation of the district's 2023–24 audit from Manning Accounting and Consulting Services and voted to approve the audit.
Manning said the district received an unmodified (clean) opinion on the financial statements and federal programs but flagged repeated material weaknesses and significant deficiencies. “Your unrestricted net position is a negative $60,000,000,” the auditor told the board, explaining that state pension and other post‑employment benefit accounting drives much of that figure even though it is largely a reporting (paper) obligation.
The auditor identified key repeat findings in internal control: cash reconciliation processes with stale checks and unreconciled closed bank account codes; weaknesses in purchase‑order controls (including at least one instance where a purchase order was later edited from a small amount up to $258,119); incomplete fixed‑asset recording; and payroll liability and reporting issues. Manning recommended continuing the district's reconciliation improvements, cleaning up inactive funds, tightening PO permissions, and documenting corrective action timelines.
Administration acknowledged the findings and described corrective steps. Finance staff said they are deactivating unused accounts, adjusting user permissions, and intending to formalize periodic reconciliations. Board members pressed for timely remedial action and asked that administration track and report progress between audits.
After the discussion the board moved to approve the audit by Manning Accounting and Consulting Services LLC. The motion passed on a roll‑call vote; board members asked that the superintendent and finance director provide regular updates as corrective actions proceed.
