Board hears FY25 audit findings and news of $219,000 retroactive forest fees

Miss Davis (Speaker 5) presented the district’s FY25 audit to the board and summarized the scope, findings and follow‑up measures.

She told the board the auditors issued an unmodified opinion but the audit contained 11 findings across several areas. The single‑audit/compliance finding of greatest operational significance involved child nutrition reporting: the audit identified over‑reported free breakfasts (reported as 2,500 free breakfasts and 143 reduced‑price breakfasts) and under‑reported free lunches (about 2,100 free lunches and 125 reduced‑price lunches). Miss Davis said the error was identified and corrected by the district’s new child nutrition director, and that corrective documentation has been submitted to grants management so the finding can be marked as corrected in next year’s audit report.

She also summarized compliance and internal control findings including journal entries prepared and approved by the same person, bank accounts with high balances, delayed deposit documentation (one deposit was recorded 13 days after receipt), travel per‑diem and mileage rate inconsistencies, payroll withholding oversights for some staff, and attendance reconciliation items. Miss Davis said staff have implemented procedures and audits at schools to address these items; she praised the procurement specialist and the finance team for improvements and noted that some historical issues likely contributed to prior, larger findings.

Separately, Miss Davis reported an unexpected and significant positive funding development: forest fees were reassessed retroactively to 2024 and the district will receive $219,000 for 2024; the 2025 amount will be announced in April and 2026 will be assessed next year. She said those forest fees are a major source of bus purchase funding and provide relief to the capital budget.

Board members asked about whether the district could be reimbursed if it proceeded with projects before state disbursement; staff said the state’s system does not allow reimbursement if the district pays the cost in advance. The FY25 audit was then approved by roll‑call vote.

The board expressed congratulations to finance and grants staff for correcting issues quickly and for the overall audit improvement compared with prior years.