Raytown C-2 audit: independent auditors give district a clean opinion, urge tighter controls

An independent audit manager told the Raytown Quality School District board on Dec. 8 that the district's financial statements for the year ending June 30, 2025, were presented "fairly in all material respects." Sandra Barrera of KPM CPAs and Advisors delivered the firm's audit findings and recommendations.

Barrera reported the district held about $66.2 million in cash and investments across funds, with roughly $45.9 million unassigned and a fund-balance equal to about 36.24% of operating expenditures (about 4.3 months of reserves). She told board members that the district's year-over-year net decrease of $21.2 million largely reflected $23.5 million of facility acquisition and construction spending financed with previously issued bond proceeds.

The presentation noted the federal single-audit reporting package was delayed because the federal compliance supplement was released late; Barrera said the audit team will complete federal testing and deliver the single-audit reporting package for board approval in January. Jackie Vernon, the district's executive director of business operations, had earlier told the board the incomplete federal supplement means the board must still finalize the federal portion in January but is required by state statute to approve the nonfederal portion in December.

Barrera highlighted several recommendations for district management:

- Prepare for GASB Statement 103 financial reporting changes, which will alter the next year's presentation; - Strengthen ongoing cybersecurity monitoring and internal-controls awareness to reduce fraud risk; - Formalize written policies and prior board approval for stipends and extra-duty pay, including signed agreements and time-and-effort documentation when federal funds are used; and - Reassess and monitor the new student information system (SIS) to ensure calendar and attendance hours reported to the state match the SIS records and to address any vendor issues promptly.

Barrera also walked the board through condensed financial schedules during her slide presentation, noting local receipts and property-tax changes and pointing to $3 million in bond proceeds remaining unspent as of June 30. She described common industry pressure as districts shift away from one-time federal aid and reminded the board that Raytown's reserve level remains above many minimum recommendations.

The board recorded a motion and vote following the presentation; the chair announced the motion passed. The audit manager said she would return with the single-audit reporting package and any federal-compliance findings after the January review.

The audit presentation and the district's discussion emphasize short-term budget impacts from capital spending and the upcoming federal single-audit steps for full compliance.