Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance Audit topic
No spam. Unsubscribe anytime.
Auditors give Waterloo district a clean opinion but flag material adjustment as fund balance falls $22 million
Summary
External auditors issued an unmodified opinion on Waterloo Community School District’s 2023–24 financial statements but reported a material audit adjustment and state checklist findings; the district’s general fund balance declined from roughly $35.5 million to $13.7 million and the board approved filings requesting additional state authority.
Auditors presented the Waterloo Community School District’s 2023–24 comprehensive annual financial report (CAFR) at the Dec. 9 board meeting and issued an unmodified (clean) opinion on the district’s financial statements while reporting a material audit adjustment and two state checklist findings.
Dustin, senior manager with Bergen/KDV (the external auditors), told the board the audit yielded a clean opinion but noted one material audit adjustment — characterized as a material weakness — and two findings from state checklist testing: one related to a function that was over budget and one related to enrollment reporting (a variance of about 79 students on the state side). “We do give an unmodified opinion on your financial statements,” he said, while also explaining the identified adjustments and findings.
CFO Jeff summarized the district’s year-end results: total general fund revenues were about $147.4 million while expenditures reached roughly $169 million, producing an approximate shortfall of $21.7 million and reducing the district’s reported fund balance from $35.5 million to $13.7 million. Jeff noted the district has a strategic plan to address the trend and explained that some revenue reductions reflected the end of federal ESSER funds and that transportation and special education costs rose.
The board accepted the audited financial statements and the CAFR was placed on file. The board also moved and approved several state-budget-review-committee (SBRC) modified supplemental requests to obtain additional authority (not immediate cash): an increased-enrollment request of $631,000, an open-enrollment-out not previously counted request of $390,500, and a request for limited English proficient instruction beyond five years for $581,500. Jeff clarified these requests expand local authority and do not by themselves raise taxes.
Auditors reported changes in key operating metrics: district regular program cost per pupil rose modestly; federal revenues fell significantly with ESSER funds reduced; and the unassigned fund balance ended the year at around $8.2 million (approximately 0.5 months of expenditures or ~5%). Dustin cautioned that one individual function exceeded its budget, which triggered a state compliance finding and a material audit adjustment during testing.
Board members asked questions about long-term planning and the timing of a potential cash-reserve levy; officials said the board would consider funding options during the spring tax and levy decisions if additional local funding is needed. The board accepted the auditor’s report and staff said they would continue work on corrective items detailed in the audit findings.
