Auditor gives Sweet Home district a clean opinion; notes a few adjustments and extra-classroom findings

Bonadio Group auditor Randy (Auditor, Bonadio Group) told the Sweet Home Central School District Board of Education on Tuesday that the firm issued an unmodified opinion on the district’s audited financial statements for the year ended June 30.

The auditor summarized required communications with the board and highlighted several audit adjustments and two “sensitive disclosures” tied to actuarial estimates: the district’s net pension liability and its other post-employment benefits (OPEB) obligation. Randy said the audit went well and that no disagreements with management prevented issuance of the opinion.

The audit presentation noted a number of accounting reclassifications and minor adjustments the district recorded during the audit, including a $219,000 receivable related to BOCES, corrections to reserves in the general fund, and the reclassification of certain extracurricular activities from custodial/fiduciary accounts into the general fund.

Superintendent Mike Genestri and staff members Don Feldman and Nicole were present for the presentation and took questions from board members. Don Feldman confirmed the extra-classroom (student activity) balance totaled about $136,000 at year end and that two small Glendale accounts had roughly $1,600 combined.

Randy pointed to three accounting estimates audited as part of the engagement: depreciation (useful lives of capital assets), the district’s share of the state pension liability, and the OPEB liability. A board member asked for the OPEB number; staff located the note and reported a total estimated OPEB obligation of about $7,600,000 as of June 30.

On the district’s fund balance, the auditor showed the calculation that the general fund reserve was 3.4 percent of the budget, below the 4 percent level cited in New York State Education Law guidance. Randy said the district was within acceptable practice but noted the difference for the board’s planning.

The Bonadio presentation included a packet of exhibits and a required-communications letter that described the audit scope, listed adjustments, and said Bonadio found no material weaknesses or significant deficiencies. The firm also provided a short management letter for the extracurricular funds, with two routine findings: (1) some disbursement forms did not always show the “available funds / amount spent / ending funds” calculation; (2) guidance on whether elementary-level extra-classroom activity accounts are advisable, because state guidance focuses on schools above sixth grade.

Randy told the board the management letter items were routine and that the district’s controls around extracurricular accounts were tighter than the firm often observes. He said the audit team will provide electronic copies of the management-letter materials and that board members should contact him with follow-up questions.

The board did not vote to accept the statements during the meeting; staff said the board will vote next week and then submit the audited statements to the State Education Department as required. The meeting adjourned after the presentation.

By the numbers cited in the presentation: OPEB obligation (note): about $7,600,000; extra-classroom balance (year end): about $136,000; fund-balance calculation shown at 3.4 percent versus the 4 percent guidance noted in state materials.