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District auditor issues clean opinion but flags nutrition point‑of‑sale reconciliation
Summary
External auditor Mia reported a clean (unmodified) opinion on Linn‑Mar Community School District’s fiscal 2025 financial statements, no compliance findings, and no material weaknesses, but identified a significant deficiency related to reconciling the nutrition program point‑of‑sale system.
The Linn‑Mar Community School District received a clean audit for fiscal year 2025, the district was told Monday, though auditors flagged a single significant deficiency tied to the school nutrition point‑of‑sale reconciliation.
“We have the unmodified opinion over the financial statements,” auditor Mia told the board, describing that as “a clean opinion, the highest level of an auditor opinion that you can receive.” The audit covered the district’s financial statements, internal controls under government auditing standards and a federal single audit of significant federal grants.
The auditor reported there were no compliance findings and no material weaknesses in internal control. The federal single audit included testing of the child nutrition program, which accounted for $1.5 million of the district’s $3.4 million in federal grant expenditures; the auditor reported an unmodified opinion on compliance for that program.
The audit team issued several deliverables: the annual comprehensive financial report, a board communication letter summarizing management’s representations, and a control‑deficiency letter containing suggestions. The control‑deficiency letter identified a significant deficiency involving reconciling the nutrition fund point‑of‑sale system, a matter the board and finance committee said they will address with staff.
Board members asked whether the deficiency would be corrected. The board’s finance representative said the issue will be discussed further in the finance committee and that committee members received the full audit booklet for review.
The auditor also noted a new accounting standard effective for fiscal 2025 that changed how compensated absences (vacation and sick leave) are recorded. The audit included a state‑required Part Four review that flagged items related to certified enrollment and supplementary weighting; those were described as non‑material.
Next steps: finance staff will take the signaled deficiency to the finance committee for corrective action and follow up with the auditor as the committee implements reconciliation protocols.
