External auditors deliver clean opinion on Sheldon ISD finances; general‑fund shortfall noted
November 01, 2024 | SHELDON ISD, School Districts, Texas
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The board received the district’s annual audit presentation from the external audit team, which reported a clean (unmodified) opinion on the 2024 financial statements and no material weaknesses in internal control.
The auditors described the two phases of their work — controls and compliance testing earlier in the year, followed by substantive testing after the books closed — and said they did not identify noncompliance or questioned costs in their single‑audit testing of federal programs. The three major federal programs reviewed were the child‑nutrition cluster, the Child and Adult Care Food Program, and the ESSER (Elementary and Secondary School Emergency Relief) program.
Key figures reported by auditors (as presented to the board): total assets and deferred outflows of $632,100,000; capital assets (net of depreciation) of $424,200,000; total liabilities and deferred inflows of $596,500,000 (including bonds payable and premiums of $460,500,000); and a net position of $35,600,000 for the fiscal year.
The auditors reported general‑fund revenues of $121,000,000 and general‑fund expenditures of $123,600,000. Auditors said the district’s ending general‑fund balance as of June 30, 2024, was $42,700,000 and that the unassigned portion of the fund balance represented about 33.2% of general‑fund expenditures — above common reserve guidance. The auditors also provided schedules for the breakfast and lunch program (revenues of $9,400,000; expenditures of $9,200,000) and the debt‑service fund (revenues of $36,800,000; expenditures of $30,900,000).
The auditor noted two common audit risks that apply generally — management override of controls and improper revenue recognition — and said they did not find instances of either in their procedures. The auditors also reported no disagreements with management on accounting treatments and confirmed they will obtain a management representation letter before finalizing the report.
The board did not ask for additional audit adjustments in the excerpted discussion; the audit team thanked district staff for meeting the audit timeline and completing required confirmations with third parties.
"The district will be getting an unmodified or clean opinion on the financial statements," the auditor said during the presentation (Speaker 4).
The auditors described the two phases of their work — controls and compliance testing earlier in the year, followed by substantive testing after the books closed — and said they did not identify noncompliance or questioned costs in their single‑audit testing of federal programs. The three major federal programs reviewed were the child‑nutrition cluster, the Child and Adult Care Food Program, and the ESSER (Elementary and Secondary School Emergency Relief) program.
Key figures reported by auditors (as presented to the board): total assets and deferred outflows of $632,100,000; capital assets (net of depreciation) of $424,200,000; total liabilities and deferred inflows of $596,500,000 (including bonds payable and premiums of $460,500,000); and a net position of $35,600,000 for the fiscal year.
The auditors reported general‑fund revenues of $121,000,000 and general‑fund expenditures of $123,600,000. Auditors said the district’s ending general‑fund balance as of June 30, 2024, was $42,700,000 and that the unassigned portion of the fund balance represented about 33.2% of general‑fund expenditures — above common reserve guidance. The auditors also provided schedules for the breakfast and lunch program (revenues of $9,400,000; expenditures of $9,200,000) and the debt‑service fund (revenues of $36,800,000; expenditures of $30,900,000).
The auditor noted two common audit risks that apply generally — management override of controls and improper revenue recognition — and said they did not find instances of either in their procedures. The auditors also reported no disagreements with management on accounting treatments and confirmed they will obtain a management representation letter before finalizing the report.
The board did not ask for additional audit adjustments in the excerpted discussion; the audit team thanked district staff for meeting the audit timeline and completing required confirmations with third parties.
"The district will be getting an unmodified or clean opinion on the financial statements," the auditor said during the presentation (Speaker 4).
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