Auditors issue unmodified opinion on Wayzata Public Schools FY24 financial statements; note new GASB capital-asset rule

Malloy, Montague and the district’s audit team presented the management report and issued an unmodified opinion on Wayzata Public Schools’ basic financial statements for the year ended June 30, 2024. In their written report, the auditors stated, “We have issued unmodified opinions on the District’s basic financial statements,” and said they found no material weaknesses in internal control over financial reporting.

The report also described a change in accounting for certain groups of similar capital assets under new Governmental Accounting Standards Board guidance. Auditors said that implementation of the new capital-asset guidance led to a restatement that “increased beginning net position in the government-wide Statement of Activities by $3,579,312 in the current year.” The audit further reported no instances of noncompliance required to be reported under Government Auditing Standards and that federal-award schedules were fairly stated.

School administrators and the audit team reviewed the audit’s other findings and follow-ups. The report noted that a material weakness reported in the prior-year audit (related to proposed audit adjustments from contracts payable) had been corrected. The auditors summarized forthcoming GASB standards (Nos. 101–103) and the likely areas that will require attention, including compensated absences and certain risk disclosures.

What happens next: Management told the Board it would continue working with auditors to implement the new GASB capital-asset rules and maintain internal controls. There was no formal vote recorded in the transcript on the audit acceptance during the excerpt provided.