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North Wasco board accepts clean audit, hears $1.06M GAAP deficit and approves corrective plan
Summary
The North Wasco County SD 21 board accepted an unmodified audit for 2023–24 but learned the district shows a $1,064,334 GAAP deficit tied to an overestimated State School Fund enrollment adjustment; the board approved a corrective action plan and several budget resolutions.
The North Wasco County School District 21 board voted unanimously Jan. 23 to accept the 2023–24 audit and an accompanying corrective action plan after the district’s CFO outlined accounting adjustments and internal control findings.
CFO Randy Anderson told the board the audit was submitted Dec. 20 and carried an “unmodified (clean) opinion,” but noted a GAAP-based deficit of $1,064,334 as of June 30. Anderson attributed the shortfall primarily to an overestimate of student enrollment that created roughly a $1.4 million reduction in State School Fund revenue and to prior-period items that were not previously recorded as accounts payable. "Under Generally Accepted Accounting Principles (GAAP), the TAN is treated as debt, contributing to the reported deficit," Anderson said as he reviewed notes to the financial statements and disclosure pages in the audit.
The audit also identified significant internal control deficiencies: inconsistent documentation of journal entries, incomplete payroll testing, decentralized student body fund management, and noncompliance steps tied to a federal afterschool grant that had not invited private schools. Anderson said three of the four corrective items in the plan are already addressed and outlined steps—regular payroll audits, staff training on student funds, and revised procurement procedures—to close remaining gaps.
Board members moved through a series of budget motions tied to the audit findings. The board approved the corrective action plan and accepted the audit (motion: Director John Nelson; second: Director Dayna Wynn‑Elledge), adopted the 2025–26 budget calendar, appointed a budget committee member, and passed three resolutions (24‑25‑06, 24‑25‑07 and 24‑25‑08) including a supplemental internal‑services budget to account for increased transportation contract revenues and associated driver costs. Each motion passed unanimously. The board was reminded that the State School Fund final amounts are not expected until late March or April, creating uncertainty for next year’s budget.
Next steps include implementing Anderson’s corrective action timelines, further training for staff who manage student body funds, and revisiting budget decisions if enrollment or state funding projections change.
