Board accepts audited financials but records material weakness in capital-assets workbook

The Yamhill Carlton SD 1 board voted to accept the audited financial statements for the fiscal year ending 2025 after the district—s business manager presented the audit findings and recommended corrective actions.

Melanie, the district business manager, told the board the auditors issued an "unmodified" opinion, meaning the financial statements were presented fairly under GAAP. She said the audit did identify issues that needed correction: missing public posting evidence for a mid-year budget change, incomplete documentation for a student investment account presentation, and a material weakness stemming from a circular reference in a long capital-assets Excel workbook that double-counted an amount. "But, overall, they gave us a clean audit," Melanie said.

The report noted checks issued #62655 through #62706 totaling $125,217.15 for the period ending Dec. 31, 2025, and a reported investment-pool dividend in the packet. The auditors recorded the circular-reference error as a material weakness because it produced a significant error in supporting documentation; Melanie said she corrected the formulas during the audit and the items were fixed by the time auditors completed testing, but the corrective action form must be signed and filed with the secretary of state.

Board members asked clarifying questions about the items the auditors flagged and the district—s plan to preserve clean documentation going forward. A motion to accept the audit as presented was moved, seconded and approved by voice vote. The board will sign the required corrective action documentation and submit it to the appropriate state office.