Cartwright board accepts FY2025 audit package despite findings on reconciliations and open‑meeting question
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Summary
The Cartwright governing board accepted the FY2025 annual comprehensive financial report, single-audit package and Arizona USFR compliance questionnaire from Heinfeld Meach & Company despite multiple findings, including a material weakness in cash reconciliations and a USFR finding that cited possible open‑meeting-law violations that a board member disputed.
The Cartwright Elementary District governing board voted to accept the fiscal‑year 2025 Annual Comprehensive Financial Report (ACFR), single audit reporting package and the Arizona Uniform System of Financial Records (USFR) compliance questionnaire from external auditors Heinfeld Meach & Company, PC.
Dr. Etheridge, the auditors' presenter, summarized the audit timeline and scope, saying the firm conducted preliminary July 2025 fieldwork, returned in October for final procedures, issued a draft in January 2026 and finalized the single audit and USFR questionnaire in March 2026. The audit package covers three components: the ACFR (financial statements), the single audit for federal funds and the Arizona‑specific USFR questionnaire.
The audit report included several findings. The single audit identified a material weakness in internal controls over cash reconciliations with the county treasurer; reconciliations were not completed on a timely monthly basis for part of the year but were ultimately reconciled down to a 33¢ difference. Dr. Etheridge said that, if not fixed, such timing issues could lead to misstated financial statements.
The auditors also flagged an ESSER set‑aside liquidation issue because the required liquidation period closed Dec. 31, 2024, and the district did not complete closing activities by that deadline, which produced an audit finding despite the district later returning the funds. Additional USFR findings covered an incorrectly coded long‑term subscription that should have been recorded as debt under recent GASB guidance, untimely auxiliary receipts deposits, undated bank reconciliations, missing or incomplete personnel forms in sampled employee files, failure to test an IT disaster‑recovery plan annually, transportation reporting discrepancies (79 students and 36 miles off the district record) and some weaknesses in property control and stewardship item records.
The USFR questionnaire also reported a finding that the district had violated Arizona open‑meeting law during October and December 2024 board meetings; that finding, Dr. Etheridge said, reflected an outside counsel's investigative report that had been submitted to the Maricopa County Attorney's Office and the Arizona Attorney General's Office for further consideration.
Board member Garcia strongly disputed the open‑meeting finding. "That is completely 100% false. It's a lie," she said, repeating that she had not been interviewed for parts of the outside counsel's review and that the attorney‑general investigation was still pending. The board president and the auditor responded that the finding in the audit package was based on a formal, documented investigative report submitted to prosecuting authorities for review.
After discussion and questions about sample sizes, vendor testing and the scope of what auditors examine, the board approved acceptance of the audit package by roll‑call vote: Miss Hernandez — aye; Miss Garcia — aye; Governing Board President — aye. The board president said the administration has already met with affected departments, added extra staff support to finish reconciliations, and will pursue internal controls and procedures to avoid repeat findings.
The board's acceptance does not itself resolve the open‑meeting question; the outside counsel's report and any action by the county attorney or the Arizona Attorney General will determine whether further legal consequences or contract invalidations follow. The auditors' report and the district's ACFR now stand as the official FY2025 financial filings.
