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Auditor: Greenwood 51's financial statements and federal compliance receive unmodified opinions; fund balance used for planned projects
Summary
An independent auditor reported unmodified (clean) opinions on Greenwood 51's financial statements and federal compliance work, said the district managed a planned decline in fund balance tied to capital projects and ESSER funding roll-off, and estimated a fund balance around $4 million (roughly 40% of annual expenditures).
Ken Martin of Martin Smith and Company told the Greenwood 51 school board that auditors issued unmodified opinions on both the district's financial statements and its federal compliance testing, a finding he described as the best possible audit outcome.
"I'm pleased to tell the board that first of all we think you've got a strong system in place," Martin said, adding auditors found no internal-control weaknesses and no federal compliance deficiencies. He described a routine audit process that included detailed testing of revenues, expenses and internal controls and noted the firm followed Generally Accepted Audit Standards and Federal Uniform Guidance for federal programs.
Martin reported the district's total revenue for the year ending June 30, 2024, was about $13.2 million, down roughly $3.2 million from the prior year. He attributed the decline chiefly to ESSER federal funds rolling off. The district intentionally used portions of its accumulated fund balance for capital and other projects: a planned decline of about $550,000 in one year and roughly $450,000 the next. After those investments he estimated the fund balance would remain around $4 million, approximately 40% of annual expenditures.
Martin said auditors consider a fund-balance cushion between roughly 24% and 40% of annual expenditures healthy; Greenwood 51's position, he said, "sets you up" for future needs while reflecting previously planned spending.
Board members thanked the finance team for the work behind the positive report. The audit presentation and related discussion were part of the board packet and required no formal board action beyond receipt of the report.
What this means for residents: the independent audit found no financial-reporting or federal-compliance problems, noted a decline in revenue tied to expiring federal ESSER funds, and described the district as budgeting and using reserves in a planned way to fund capital projects.
