Board hears completed 2022–23 audit; auditors flag segregation‑of‑duties and activity‑fund controls

The finance and facilities representative reported the district’s 2022–23 audit is complete and that the financial statements received an unmodified (clean) opinion.

In the audit presentation, the auditor noted the district’s federal awards spending totaled about $2 million in 2022–23, with COVID relief funding, school nutrition and local entitlement as the largest elements. The presenter said the federal awards audit produced a qualified opinion due to a finding related to the school‑nutrition application process; that finding has been cleared and corrective actions documented.

The audit management letter included two primary comments the district plans to address: segregation of duties in a small accounting office and oversight of school activity funds. The presenter said the district has a relatively small accounting staff for an approximately $30.7 million budget and that some incompatible duties (posting deposits, writing checks, making journal entries) currently fall to the same person. To mitigate the risk, the district has a board member sign warrants weekly and will centralize bookkeeping for several activity accounts.

"Those received an unmodified or clean opinion," the presenter said of the financial statements, and explained the qualified federal finding and the steps management has taken to clear it.

Board members asked questions about the management comments and next steps; the presenter noted plans to centralize three activity accounts, tighten documentation and continue monthly oversight to reduce the risk associated with limited staffing.

No formal board action was required at the meeting; the board acknowledged the audit report and accepted staff’s plan to implement the suggested mitigations.