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Board accepts federal single audit; one compliance finding on vendor checks
Summary
The district received an unmodified opinion on its fiscal year 2024–25 federal single audit, but auditors reported a single internal-control finding: timing of checks against the federal excluded parties (suspended/debarred) vendor list for USDA child nutrition payments and recommended procedural changes, which administration says have been implemented.
The board reviewed the district's federal single audit for fiscal year 2024–25. Finance staff reported the audit was performed by LB Carlson and that the district received an unmodified opinion on financial statements and compliance — the highest-level opinion an auditor can issue.
The auditor identified one significant deficiency in internal controls over compliance related to the Department of Agriculture child nutrition cluster: the timing and documentation of checks against the federal excluded parties list for vendors paid with federal child nutrition funds. Finance staff said the district had been checking the excluded parties list semiannually (fall and spring), but auditors now expect that checks occur before issuing payments to any vendor paid with federal funds. The district told the board it has revised protocols to check list status prior to payments and that the corrective action plan has been approved by the commissioner.
The board debated procedure and public process. Board member Scar sought greater clarity on how the finding arose and the size and nature of the sample auditors used; auditors and staff said the sample was not statistically large (several high-dollar vendors were reviewed) and that the vendors in question were not debarred, but the timing of checks did not meet the auditors'new expectation.
After discussion, the board voted to accept the federal single audit. Roll-call votes were recorded as follows: Thompson Aye; Arcand Aye; Beloyed Aye; Ellison Aye; Scar No; Scribe Oji Aye. Administration said the corrective actions are already in place and the auditor indicated that, if implemented, the issue should not recur on next year's audit.
