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Board accepts FY25 audit; auditors note a six-figure reimbursement coding error tied to school-facilities funds
Summary
The board accepted the FY25 audited financials and single audit; auditors reported no federal noncompliance findings but noted a local-funds reporting issue where reimbursements for school-facilities projects were coded between funds 691 and 695 incorrectly, requiring corrective entries and strengthened controls.
The Saddle Mountain Unified School District Governing Board voted March 11 to accept the FY25 audit reports after staff summarized audit findings and corrective steps.
Ms. King, the district's executive director overseeing the audit work, told the board the auditors issued three reports: the audited financial statements (ACFR), a single audit of federal funds and the USFR compliance questionnaire. "Saddle Mountain did not have any audit findings in regards to non-compliance with the federal uniform grant guidance," she said, but the auditors did identify one reportable finding related to local funds: coding and reimbursement entries for school-facilities projects were placed in incorrect funds (691 versus 695) and some reimbursements had not flowed back to the original account. Because the misallocation exceeded $500,000, it had to be reported in the single audit.
Ms. King described steps already taken or planned to address the issue: correcting journal entries where appropriate, increased chart-of-accounts training for staff who enter requisitions, improved deposit procedures (including a scanner to reduce delayed deposits), and tighter review of credit-card and vendor invoicing practices. She said many smaller compliance items identified in the USFR questionnaire — for example, conflict-of-interest forms and coding updates for specific software accounts — have already been addressed this year.
Board members pressed on operational impacts and recovery timing for reimbursable SFB projects. Ms. King explained that SFB reimbursements for construction can lag by months and even years: "We sent all of the invoices for the 900 building and now we're just waiting for that final reimbursement on the 695," she said, noting the cash-flow mismatch is expected but manageable within grant accounting rules.
After discussion the board voted to accept the FY25 audit reports. Ms. King also confirmed staff will provide additional documentation and follow-up to the board about corrected entries and timeline for reimbursements.
