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District auditor briefs Timberlane board on risks, fund balance and reporting issues
Summary
Auditor Mike Campo presented the annual audit to the Timberlane board, citing control risks (journal entries, management override, QuickBooks use), noting a grants‑timing issue of about $210,000, and recommending a 10–15% fund balance target and monthly budget-to-actual reviews.
Mike Campo, partner at Plaza & Sanderson, delivered the district’s annual audit presentation and governance letter to the Timberlane Regional School District board.
Campo explained the auditor’s role as an independent opinion and identified recurring audit risks he tests for: improper revenue recognition, management‑override of controls (especially unsupported journal entries), and risks introduced when districts use general accounting packages such as QuickBooks. "We look at your receipts for the subsequent period, at least two months," Campo said, describing procedures auditors use to test revenue timing.
The auditor reported the district’s financial statements were "fairly presented in all material respects for all opinion units" while highlighting items the governance letter raised for attention. He cited a grants‑fund timing variance that caused roughly $210,000 of tax dollars to be raised and returned the following year and urged stronger documentation and segregation of duties for journal entries to reduce risk.
On reserves, Campo noted GFOA guidance of roughly 10–15% as a reasonable fund‑balance target and recommended the board monitor budget‑to‑actual results monthly, identifying payroll, benefits and facilities as functions prone to material variances. He also discussed the district’s $16 million use of fund balance in the prior year and advised the board to consider multi‑year stability for the tax rate.
The presentation concluded with an invitation for follow‑up: the auditor offered to provide more detailed reports and attend additional meetings to answer public and board questions.
