External auditor gives Odessa R‑VII an unmodified opinion, flags segregation‑of‑duties finding

An external auditor reported to the Odessa R‑VII School Board that the district’s audited financial statements received an unmodified opinion and that the record reflects $1.9 million in federal expenditures requiring additional testing under uniform guidance.

The auditor told trustees, "We gave an unmodified opinion," and explained that an unmodified opinion means the financial statements are presented fairly and without exception as of the audit date. The auditor also said the district’s federal expenditures of $1.9 million increased the scope of testing, noting that next year the federal threshold for additional testing will rise from $750,000 to $1 million.

The auditor identified one recurring control finding: segregation of duties. "We do have a finding which is a lack of segregation of duties," the auditor said, adding that this is common in many school audits where a small finance staff performs multiple roles.

Board discussion did not show a formal vote on the audit during the recorded transcript; the auditor characterized the district’s fund balance and liquidity as healthy, reporting that as of June 30 the district had used about 47% of its expenditures, a proportion auditors described as stronger than typical benchmarks.

The board did not record additional action on the report in the transcript. The auditor encouraged continued attention to internal controls and noted the district will continue to be subject to federal compliance testing tied to the federal expenditure level.

Next procedural steps, including whether the board will formally accept the audit in a subsequent vote, were not recorded in the transcript.