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Interim CFO says 2024 reconciliations mostly complete; board approves warrants sale and adds treasurer as signer
Summary
Kim Michael Lee, interim CFO from FGMK, reported that most 2024 reconciliations are finished and that bank reconciliations are current through September 2025; the board discussed reporting relationships and audit language and unanimously approved sale of up to $3 million in anticipatory warrants and authorized board treasurer Kurt Pratt as a bank signer.
At the March 3 special meeting the board received an update from interim CFO Kim Michael Lee of FGMK, who said her initial work has produced rapid progress on reconciliations and that the district will institute month-end close procedures beginning March 1.
Michael Lee told the board that much of 2024 reconciliation work has been completed and that the general bank reconciliation is current through September 2025; she said the 2024 audit fieldwork has been rescheduled to the first week of April to allow reconciliations to be finished in advance. "A lot of items on 2024 that were marked incomplete have been completed as of yesterday," she said, and added that implementing a month-end close and a checklist of assigned responsibilities will address prior control gaps.
Directors pressed for more detail about the nature of the deficiencies, and Michael Lee characterized the current books as "unbalanced, unreconciled, and we don't have financials to present" for the affected periods while the reconciliations are completed and reviewed.
Reporting relationship debate: Public commenter Angie Rogers had urged that the interim CFO report solely to the board rather than jointly to the superintendent to preserve independence and public trust. Directors discussed that question at length; some agreed that the interim CFO should be an independent voice to the board, while others noted legal and practical constraints and counsel's advice to wait for auditors and investigators to complete certain procedures before publishing definitive findings.
Votes at the meeting: - The board approved a resolution directing the sale of anticipatory warrants not to exceed $3 million (taxable series 2026). Online voting was used and the motion carried with all directors voting in favor. - The board also authorized Kurt Pratt, board treasurer, to be an authorized signer on the district's GreenState Credit Union accounts; that motion carried unanimously.
Why it matters: Progress on reconciliations and an agreed cadence of reporting are necessary to inform sound budget choices and the district's ability to manage cash flow and debt. Directors said they want periodic, frequent updates on reconciliation progress and an end-of-engagement consolidated report identifying deficiencies and corrective actions.
Next steps: Michael Lee said she would keep the reconciliation tracking document live and update the board weekly. Directors requested a consolidated report at the end of the engagement and follow-up on whether the auditor's office will perform additional procedures requested by the board.
