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Winthrop audit shows draft clean opinion but flags two significant control weaknesses
Summary
Auditor Jennifer Connors told the Winthrop School Board the FY25 financial statements are drafted and would carry an unmodified (clean) opinion once the town audit is complete, but the audit found two significant deficiencies in high‑school activity‑fund recordkeeping and school‑lunch bank reconciliations.
Jennifer Connors, the auditor who presented the FY25 review, told the Winthrop School Board that the district’s financial statements are currently drafted and, pending completion of the townwide audit, would receive an unmodified (clean) opinion.
Connors said federal‑grant testing of the school nutrition cluster produced no compliance findings and that overall revenues exceeded budget by about $163,000 while expenditures came in under budget by roughly $261,000 — a combination that left the general fund slightly improved in FY25. "In FY25, the general fund fund balance increased by about $29,000 over fiscal year 2024," Connors said during her presentation.
The auditor highlighted two significant deficiencies in internal control. The first involved high‑school activity‑fund procedures: Connors reported that, in a sample of 40 disbursements, 35 did not include the required approval voucher and that multiple deposit forms lacked required secondary count signatures. "Those requirements were not met," she said, noting the volume of exceptions elevated the matter to a significant deficiency.
The second finding concerned the school‑lunch checking account reconciliations: several bank reconciliations were missing the finance director’s signoff, hindering evidence that an independent review had occurred. Connors warned that, in a small staff environment, the lack of consistent secondary review amplifies segregation‑of‑duties risk.
Board members asked clarifying questions; Connors said the prior‑year material weakness related to middle‑school activity funds had been downgraded to a comment this year, reflecting progress. She recommended restoring and documenting required approvals and ensuring consistent signoffs on reconciliations.
Connors also reviewed fund‑balance metrics: over five years the total fund balance had declined by about $515,000, but the unassigned fund balance for FY25 was approximately $33,000 (about 2.25% of budget), well below the state’s 9% carry‑forward threshold.
The auditor cautioned that the financial statements remain drafts until the town audit is complete; the board received the presentation and had no substantive follow‑up votes on the audit itself at this meeting.
