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Auditor presents annual financial audit; board approves report
Summary
The Freedom Public Schools board approved the district's annual financial audit presented by SMB CTA. The auditor reported an unqualified state opinion, an adverse federal opinion tied to accounting presentation, no reportable conditions, and noted control risks in the activity fund.
An auditor from SMB CTA presented Freedom Public Schools' annual financial audit and the board voted to approve the report.
The auditor said the district reports its financial statements on the state-required regulatory basis (a modified cash basis). He told the board the opinion for the state of Oklahoma is unqualified, while the opinion for federal reporting is adverse because the statements are not presented using U.S. generally accepted accounting principles. The auditor also said, "No reportable conditions were noted." The auditor flagged the activity fund as the highest internal-control risk and reviewed the district's federal program expenditures and the pace of spending restricted federal funds.
The auditor summarized key figures from the report: $532,000 in assets, $6,500 in warrants payable, and an increase to the fund balance of about $323,000 for the year. He described revenue and expenditure figures shown on the report and said the district is spending down some restricted federal funds as it secures approvals for permitted uses. He noted long-term debt had been paid off, citing a previously financed HVAC at about $110,000 as retired.
Board members moved to accept the audit report. Board members Robert Babcock, Amanda Schroeder and Shane Morris were recorded voting yes on the motion; the transcript indicates the motion passed. The auditor said he would finalize and deliver the documents following the meeting.
Why it matters: Approval of the annual audit closes the district's formal fiscal review for the year and signals to state and federal oversight entities that an external review has been completed. The auditor's identification of an adverse federal opinion reflects a difference in accounting presentation (regulatory/modified cash basis versus U.S. GAAP) rather than a finding of fiscal misstatement, and the report's lack of reportable conditions indicates auditors did not identify material internal-control weaknesses in the areas they reviewed.
The board did not ask for additional follow-up in the meeting; the auditor said he would send finalized materials to the district.
