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Auditor issues clean opinion for West Salem, flags material adjustments and segregation-of-duties finding
Summary
Johnson Buck and Company issued an unmodified audit opinion for West Salem for the year ended June 30, 2025, while noting findings including material audit adjustments related to borrowing entries and a segregation-of-duties recommendation; the single-audit for federal funds was also issued.
Johnson Buck and Company presented the 2024–25 audit to the West Salem School Board and issued an unmodified (clean) opinion for the year ended June 30, 2025, while also reporting several audit findings the firm recommends the district address.
"We issued our unmodified opinion," auditor Kim Hollerman said, noting the scope included all funds and activities of the district. Hollerman said the auditor also prepared and submitted the single-audit report covering roughly $1,400,000 in federal funds and did not identify compliance findings there.
In the financial audit, the firm reported findings tied to material audit adjustments—largely related to entries associated with recent borrowing—and an internal-control recommendation concerning segregation of duties. Hollerman characterized the adjustments as likely a one‑off effect of the recent financing and said the segregation-of-duties finding is common in districts of this size where staff roles are concentrated.
Hollerman summarized key financial results: the general fund recorded approximately $30,100,000 in revenues and $31,200,000 in expenditures, with other financing sources of about $1,500,000 and an ending general fund balance of roughly $4,100,000. Across all funds, total revenues were about $36,500,000 and total expenditures about $41,600,000, leaving an ending fund balance of about $29,000,000 (including restricted balances).
The audit report included a long-term obligations table showing a beginning general-obligation debt balance near $20,600,000, increases of $32,300,000 related to recent borrowing, payments of about $11,400,000, and an ending balance of about $41,500,000 (with approximately $2,100,000 due in 2025–26). The auditors also presented debt‑limit calculations indicating substantial borrowing capacity remained under statutory limits.
Board members asked about the audit procedures; Hollerman described a risk‑based approach with testing focused on higher‑risk areas (cash, payroll, payables, debt and revenue recognition) and said auditors used analytics and sample testing rather than tracing every receipt. She advised the board that implementing recommended segregation adjustments could remove the internal-control finding in future audits.
No board action was required; the audit was presented for information and follow-up.
