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Independent audit finds multiple material weaknesses and significant deficiencies; board approves audit
Summary
Auditors gave Central Consolidated Schools an unmodified opinion on its financial statements but reported multiple internal-control weaknesses (including fixed-asset depreciation errors, grant-monitoring repeat findings, conflict-of-interest vendor activity, and misposted student-activity spending). The board approved the audit and asked for corrective action timelines.
Auditors presented the Central Consolidated Schools annual financial audit and an independent internal-control report that included several material weaknesses and a number of significant deficiencies.
Byron Manning, the district's auditor, summarized the purpose of the audit and said the audit opinion on the financial statements was unmodified, the most favorable auditor conclusion. He reported a district net position in the range of roughly $126 million and noted that swings in pension and other postemployment assumptions materially affect annual changes in net position.
Chris, another member of the audit team, presented internal-control findings and described multiple errors and process lapses that require action. A material weakness (2025-2) concerned fixed-asset reporting and depreciation: auditors found a school activity bus with incorrectly recorded accumulated depreciation that required a prior-period adjustment of approximately $725,647 and left residual under-depreciation on the books. Auditors said the problem appears to stem from asset-recording and depreciation coding in the district's Visions system and recommended reconciliations and training.
A repeat significant deficiency (2025-1) related to grant reimbursements and monitoring: auditors flagged negative or unreconciled fund balances (including funds closed in 2024 that still carry payables) and inconsistent processes for tracking monthly request-for-reimbursements entries. Another significant deficiency (2025-3) involved a government-conduct violation: an internal investigation found that a former director of operations had an ownership interest in a vendor and oversaw related invoices; the district said the employee was removed and board members discussed referrals to the Public Education Department and potential attorney general pathways.
A material weakness (2025-7) was reported for budget access controls and the use of student-activity funds: the transportation department had access to student-activity balances and spent beyond available funds, creating an interfund liability (auditors reported the transportation department owed approximately $163,342 to student activity funds at year end). The district said it transferred the cost into the operational fund to restore student-activity balances.
Auditors also documented several NMSA-level findings common to districts: purchase orders issued after purchases, travel-reimbursement errors, budgetary control lapses and stale-dated checks. Auditors recommended process improvements, reconciliations, and clearer communications between departments.
During Q&A, board members asked for specifics about the fixed-asset adjustment, the status of reimbursements to a former charter and the timeline for corrective actions. Auditors pointed to the district's corrective action plans included in the audit report and recommended following the responsible-official timelines there.
After discussion the board moved to approve the audit: a roll-call vote was taken and the audit was accepted. Board members asked for follow-up checks on grant-reimbursement cleanup, asset reconciliations, and tightened budget access controls. The board did not vote on individual auditors' recommendations but approved the overall report.
