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Auditor: adverse opinion tied to chosen accounting basis; district financials otherwise consistent
Summary
Auditor Heather Powell told the board the audit includes an adverse opinion on the district's modified accrual reporting basis (a historical choice), the annual financial report required by ISBE was filed, federal single audits are delayed nationally, and ed‑fund expenses were under budget by about $3.3 million.
Heather Powell of Forus presented the Urbana SD 116 audit to the board, explaining the adverse opinion relates to the district's decision not to adopt a newer GASB reporting standard and the modified accrual basis used for the financial‑statement audit.
Powell said the separate annual financial report filed with the Illinois State Board of Education uses a prescribed regulatory form and received a clean opinion; the adverse opinion pertains to a different reporting framework and, she said, does not reflect a substantive deterioration in the district's finances. "That adverse opinion is really used mostly for bond purposes and our bond counsel did not have an issue with it," she said.
Powell noted the federal 'single audit' was not issued nationally because the federal compliance supplement had not been published; she said due dates for federal audits typically extend nine months after fiscal year end and agencies often issue extensions in such circumstances.
On operational numbers, Powell reported the education fund expenses were under budget by about $3.3 million and explained timing differences in local tax distributions that can temporarily depress reported fund balances. She also flagged that transportation and tort funds were showing negative balances on an accrual basis in the statements provided and explained timing and presentation differences that account for much of the appearance of decline.
Board members asked for clarification on a 'deficit annual financial report' summary line and object code 600 (payments to other districts), and Powell and staff agreed to provide a follow‑up examining the specific pages and the state's calculations.
No vote was required; the presentation was informational and staff offered to circulate detailed pages and follow‑up answers by email.
