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Brush School District board accepts 2023–24 audit after auditor flags controls, grant accounting issues
Summary
Auditor presented the district—inancial statements and recommended tighter monthly review, better grant drawdown practices and improved internal controls; the board approved the 2023 nd-24 audit and assurances by roll call.
Mr. Farmer, the district's external auditor, presented highlights of the Brush School District's 2023–24 financial audit and told the board that, overall, the district is in a solid financial position but needs stronger monthly controls and clearer grant accounting.
Mr. Farmer noted the district reported $73 million net in capital assets (about $105 million original cost, roughly $32.8 million in accumulated depreciation) and described that as a large asset base that requires ongoing maintenance. He said the general fund showed a high cash position (about $14 million) and that, on a conceptual income-statement view, an $878,000 surplus appeared but warned this did not mean every fund was healthy. "You have to make sure those assets are well taken care of," he said.
The auditor flagged specific accounting issues in Title programs and Head Start: unreimbursed federal expenditures (approximately $100,000) and a $26,000 Head Start misbalance. He recommended routine monthly drawdown procedures so federal programs balance to zero by year end and advised the board to require monthly reconciliations and timely receivable recognition. "If you don't request draw down funds within 120 days you can probably get it corrected, but CDE can enforce the 120-day window," he said.
Mr. Farmer also raised internal-control recommendations: tighten Student Activity fund procedures, consider moving a district-held scholarship/trust fund outside the district, reduce unnecessary journal entries, and require clearer account-coding so CDE submissions are accurate. He told members there was no evidence of fraud. "There was no evidence of any investment or fraud or anything like that," he said, while urging improvements to bookkeeping and oversight.
After discussion and questions about statutory review requirements, monthly reporting and software/reporting limitations, the board moved and seconded to approve the 2023–24 financial audit report and assurances "as presented." The motion passed on a roll-call vote.
