Auditors give Frankfort-Elberta Area Schools an unmodified opinion; general fund rises

Ryan Howell, the district’s external auditor, told the Frankfort-Elberta Area Schools board that the audit produced an unmodified (unqualified) opinion on the district’s 2023–24 financial statements. "That's an unmodified or unqualified opinion — that's the best opinion we can give," Howell said during his presentation.

Howell said the district recorded a net increase in its general fund balance of approximately $645,517 for the year, bringing the general fund balance to about $3,650,000. He highlighted the district’s fund-balance-to-expenditures ratio at roughly 39.3%, well above common cautionary thresholds around 20%, and said that the district is "financially in great shape." Howell attributed revenue increases primarily to a roughly 6% rise in taxable values and noted modest changes in federal and state grant funding. Expenditures increased by about $375,000, driven largely by salaries, benefits and the purchase of a plow truck.

Howell reviewed capital-project funds, noting the 2021 capital projects fund had been largely expended (a small remaining balance was closed out) and that the 2024 capital projects fund increased with bond proceeds while incurring roughly $588,000 in project expenditures. He also summarized smaller nonmajor funds: the Food Service fund showed a small decrease in fund balance and has been self-supporting in recent years; the school activity fund had an increase (about $6,770) from fundraising activity; and the community service special revenue fund showed a decrease that required an interfund transfer from the general fund.

Because federal expenditures exceeded the single-audit threshold this year, the auditors performed a single audit of federal programs. Howell said federal expenditures were reported at about $954,000 for the year and that the Child Nutrition cluster was tested with no findings. He said the district had a prior-year finding (an unfavorable budget variance in FY2022–23) that has been corrected and that no current-year findings or comments requiring corrective action were identified. Howell described the county/district records as "in great shape" and said he had no significant deficiencies to report.

The board thanked Howell and auditor staff for the presentation; the auditors noted the single-audit threshold will change for future years and that the district may have one more single audit depending on future federal-expenditure totals.

The board moved on after the presentation; no formal vote was required on the audit opinion itself.