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District auditor says clean opinion likely but federal testing delay holds up final report
Summary
The district's external auditor told the board a final audit can't be issued until the federal compliance supplement is released, but staff testing shows no material noncompliance and an unmodified (clean) opinion is planned; the auditor flagged a single procurement procedure recommendation.
Jeff Schroeder, the district's external auditor, told the Board of Education that auditors have completed fieldwork but cannot issue the final federal compliance report until the Office of Management and Budget issues the annual compliance supplement.
Schroeder said auditors used last year’s supplement provisionally and "we are planning to issue an unmodified opinion on the financial statement," and that the firm found no reportable instances of noncompliance in the areas already tested. He told the board the delay is external: "the federal government is responsible every year for issuing the compliance supplement ... and this year it is still not issued." (Jeff Schroeder, auditor)
The presentation laid out several finance highlights: an overall fund balance decrease of $7,300,000 tied to planned capital spending; a combined general/teachers fund balance ratio of 47%, which Schroeder said compares favorably with Governmental Financial Officers Association guidance; and federal expenditures of $1,901,633 for the year, with the child‑nutrition cluster selected as a major program for testing.
Schroeder described one recommendation tied to procurement documentation: where the district’s manual requires sealed bids for purchases over $50,000, auditors found instances where the documentation needed clarification. He framed the item as procedural and fixable through clearer policy language and record keeping: "the recommendation was just to make sure what we're actually doing ... is in accordance with what our policy manual says." (Jeff Schroeder, auditor)
Board members asked about practical implications for operations. Schroeder said the firm will recheck the supplement against the work already performed and, if new tests are required, the audit team will perform them and reissue reports as needed. The board did not take formal action other than to acknowledge the update; Schroeder said staff will be notified if further testing becomes necessary.
Next steps: the audit firm will monitor the OMB release, finalize any additional testing if required and then issue the signed reports; district staff will consider a minor procurement‑policy clarification to address the bid‑documentation item raised by auditors.
