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District audit returns unmodified opinion, flags limited segregation of duties
Summary
An external audit presented an unmodified opinion on Saint Croix Central School District’s financial statements but noted a recurring finding about limited segregation of duties; auditors said program testing found no findings and highlighted large capital project spending and recent principal prepayments.
Sarah Cobbs of CliftonLarsonAllen LLP told the Saint Croix Central School District board that the firm issued an unmodified opinion on the district’s financial statements, the firm’s highest level of assurance.
Cobbs said the audit identified a repeating management-level finding: limited segregation of duties in accounting operations, attributed to the district’s limited staff resources and lack of an on‑site CPA. She described this as a common control risk in small districts and recommended compensating controls such as additional review procedures.
The auditors also said the district required a single audit this year because federal‑aid related expenditures exceeded the threshold that triggers additional program testing. Cobbs reported that program testing found no findings for the federal and state programs selected for testing.
On the district’s finances, Cobbs summarized key items: receivables tied to building‑usage fees and state/federal aid, modest prepaid expenses, and restricted fund balances that represent grant proceeds not yet spent. The unassigned general‑fund balance was presented at about 16.9 percent of general‑fund expenditures, near the district’s stated policy range.
Revenue rose year‑over‑year by roughly $3.8 million, the auditor said, driven in part by higher property‑tax receipts and grant activity; expenses increased by about 3.7 percent. The presentation noted several finance purchase agreements (including buses and a lighting project) and that roughly $382,000 had been prepaid toward future debt service to reduce future interest costs.
Cobbs reviewed long‑term obligations and benefits liabilities, including the Wisconsin Retirement System pension and OPEB/supplemental pension liabilities computed by outside actuaries (Foster and Foster were named). She also summarized capital‑project activity: more than $20 million of capital expenditures were recorded in the capital projects fund this year and the district remains under its debt capacity.
Board members asked clarifying questions about fund balances, debt capacity and controls. Cobbs said staff prepared good working papers and that auditors typically spend a few days on site and follow up if more evidence is needed. The audit presentation was followed by routine acceptance of the treasurer’s report and other business.
