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School board reviews first‑quarter finances as audit for FY24 runs behind schedule
Summary
East Otero School District No. R1 trustees received a first‑quarter financial update showing year‑to‑date activity near 25% of budget, roughly 82.5 days cash on hand, and discussed a delayed FY24 single audit that staff expect will require an extension to March 31.
The East Otero School District No. R1 board heard a detailed financial briefing on first‑quarter results, and staff warned the board that the district's FY24 single audit is running behind schedule and may need an extension to March 31.
The finance presenter identified in the transcript as "Kiego" told trustees the balance sheet and consolidated cash‑flow snapshot (July–September) show the district is tracking at roughly 25% of the adopted budget for the year and that revenues are low at the start of the year because property taxes have not yet been received. "We did just receive this yesterday — some Title funds we've been waiting $300,000 for," the presenter said, adding that those funds will increase next month's revenues while requiring associated grant expenditures.
Why it matters: trustees, staff and auditors use the audit and these quarterly reports to confirm revenues and fund balances that underlie budget decisions, grant compliance and vendor payments. Delays in the FY24 audit can complicate closing entries and the timing of final balances brought into FY25.
Board members asked specific questions about fund accounting. The presenter described the balance sheet as broken out by fund (salaries, benefits and 0300–0900 purchase services) and said the beginning fund balance figures were "un‑audited" and may change when the audit is complete. She reported roughly 82.5 days cash on hand across CDs, Colorado Trust and operating accounts after reducing TABOR‑mandated amounts.
Trustees also pressed on a $50,000 audit entry listed as "cash with treasurer." The presenter explained that the $50,000 is an audit entry from fiscal year 2024 related to deferred property tax revenue and that staff were holding the amount until auditors complete their review.
Auditor timeline: Kim, a district staff member working with the auditors, said the single audit for FY24 is delayed because the audit firm is prioritizing districts already on schedule; she does not expect the district to meet a December deadline and said an extension to March 31 was discussed. "I honestly don't think we'll hit it," she said, describing that the district has answered questions on its side and is waiting for remaining items from the auditor. Staff said once FY24 is closed the FY25 audit should go more quickly because the retrospective cleanup will be finished.
Controls and operations: presenters emphasized payroll liabilities and vendor obligations are current (Colorado Department of Revenue and IRS accounts up to date) and described steps to tighten accounts‑payable controls (weekly open‑AP reports) and to integrate student activity accounts (Fund 23) into the main financial software.
What happens next: trustees voted to approve the September financial report as presented. Staff will continue working with the auditors, finalize the October student count and update the board when audit timing or material adjustments become available.
