Winthrop auditor reports clean opinion expected, two significant deficiencies in activity and lunch controls

Jennifer Connors, the district's external auditor, presented the fiscal year 2025 audit to the Winthrop School Board and described a mostly positive set of findings alongside a pair of internal-control deficiencies.

Connors said the financial statements are drafted and "would have an unmodified opinion on them," but noted the statements cannot be issued until the town audit is complete. She told the board the district has "no material weaknesses" but that the audit identified two significant deficiencies: one involving high school activity-fund disbursement and deposit procedures, and another concerning school lunch bank reconciliations.

On the activity fund, Connors said auditors tested 40 disbursements and found that 35 lacked the required approval voucher; among cash-receipt tests, several deposit forms lacked required signatures and secondary count verification. About the school-lunch checking account, she said some bank reconciliations were not signed by the finance director, raising segregation-of-duties concerns because the department is small.

Connors also reviewed fund-balance trends: over five fiscal years the general fund has decreased by about $515,000, but "in FY25, the general fund fund balance increased by about $29,000" compared with FY24, leaving an unassigned fund balance of roughly $303,000 (about 2.25% of the budget). She noted revenues exceeded budget by approximately $163,000 and expenditures were under budget by about $261,000.

Board members did not seek additional immediate actions beyond following the auditor's recommendations; the presentation closed with an acknowledgement of progress on last year's prior material-weakness finding, which had been downgraded to an other comment this year.

The board retained the draft audit for inclusion in annual reporting when the town audit is finalized.