Independent auditors issue unmodified opinion on Smithfield FY25 finances; recommend accounting cleanups

Dave Hansen, audit manager for CLA, presented the FY25 audited financial statements to the Smithfield School Committee Feb. 26 and said auditors issued an unmodified opinion and found no reportable findings for the district.

Hansen said the district’s unrestricted school operating fund balance was about $2.4 million — effectively flat from the prior year — and that total governmental funds increased by roughly $400,000. He explained a $2.3 million state "on‑behalf" pension/transportation entry appears in reporting for financial‑statement disclosure but is not carried in the district’s budget, which affects the presentation of an "other" line in the budgetary comparison schedules.

Recommendations: although there were no findings, auditors made two management recommendations: ensure enterprise‑fund capital assets (such as cafeteria equipment) are allocated properly when used by multiple funds, and reconcile interfund payables/receivables monthly to avoid audit adjustments. Hansen said management made client journal entries to correct early discrepancies and the district uses actuarial information for pension/OPED valuations that auditors rely upon.

Committee questions focused on what goes into the "other" budget line, pension on‑behalf entries, and the composition of miscellaneous revenue. Hansen offered to provide more detailed schedules after the meeting.

There were no material weaknesses or control deficiencies noted; auditors said internal controls operated effectively for FY25.