Wall School District 51-5 accepts FY23 audit showing unmodified opinion and modest fund growth
March 07, 2024 | Wall School District 51-5, School Districts, South Dakota
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Jessica, an auditor with ELO who presented on Zoom, told the Wall School District 51-5 board that the FY23 financial statements received an unmodified opinion. "We have an unmodified opinion on the financial statements, which is the best opinion you can get," she said, and summarized two recurring findings: a lack of segregation of duties and issues with preparation of financial statements.
Jessica walked the board through the management discussion and analysis and noted the district implemented GASB Statement 96 (subscriptions) with no material effect on the statements. She pointed to line items showing a $115,000 transfer to capital projects for the district's CTE building and reported total governmental fund expenditures of about $4,290,000 against revenues of about $4,500,000, producing a net increase of roughly $253,000.
Amy, the district business manager, confirmed the $115,000 transfer is funding for the CTE project and said the transfer was funded from existing resources; "No new debt and, yes, existing funds," she said. The auditor advised the board to review capitalization thresholds annually and to remain aware of internal-control findings even when small organizations lack resources to fully segregate duties.
Board members asked clarifying questions about fund balances and notes for subscriptions; Jessica pointed the board to the management discussion and the schedule of findings. The board then moved and approved acceptance of the FY23 audit by voice vote.
The auditors cautioned the board that if the district spends more than $750,000 in federal funds in a future year the district would require a single audit, which may increase audit fees. The presentation closed with the board approving the audit and expressing appreciation for the auditors' work.
The board's next fiscal steps noted in the meeting record include annual review of capitalization thresholds and continued monitoring of the two recurring internal-control findings.
Jessica walked the board through the management discussion and analysis and noted the district implemented GASB Statement 96 (subscriptions) with no material effect on the statements. She pointed to line items showing a $115,000 transfer to capital projects for the district's CTE building and reported total governmental fund expenditures of about $4,290,000 against revenues of about $4,500,000, producing a net increase of roughly $253,000.
Amy, the district business manager, confirmed the $115,000 transfer is funding for the CTE project and said the transfer was funded from existing resources; "No new debt and, yes, existing funds," she said. The auditor advised the board to review capitalization thresholds annually and to remain aware of internal-control findings even when small organizations lack resources to fully segregate duties.
Board members asked clarifying questions about fund balances and notes for subscriptions; Jessica pointed the board to the management discussion and the schedule of findings. The board then moved and approved acceptance of the FY23 audit by voice vote.
The auditors cautioned the board that if the district spends more than $750,000 in federal funds in a future year the district would require a single audit, which may increase audit fees. The presentation closed with the board approving the audit and expressing appreciation for the auditors' work.
The board's next fiscal steps noted in the meeting record include annual review of capitalization thresholds and continued monitoring of the two recurring internal-control findings.
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