FY25 Independent Audit Reveals Multiple Material Weaknesses and Financial Control Deficiencies

What happened

The board received and accepted the FY25 (year ended June 30, 2025) independent audit from Eide Bailly. While the district received a clean/unmodified opinion overall, the audit identified three material weaknesses (preparation of financial statements, material audit adjustments including a prior-period restatement, and segregation of duties), two significant deficiencies (incomplete employee I-9 forms and inadequate monitoring of purchasing card expenditures, including personal purchases made on a district credit card), a federal single-audit finding tied to the 21st Century Community Learning Centers program related to the same credit card misuse, and state compliance findings including expenditures exceeding the certified budget in instruction and support services, and one student activity account with a deficit balance.

Why it matters to families

Material weaknesses and significant deficiencies in financial controls—including confirmed personal purchases on a district credit card charged partly to a federal grant program—represent a documented operational and compliance risk. Exceeding the certified budget in instruction and support services and inadequate segregation of financial duties are the kinds of findings that can affect the district's bonding, federal funding compliance status, and fiscal oversight going forward.

The evidence

Auditor Jamie Fay (Eide Bailly) told the board: 'we did have three material weaknesses... preparation of financial statements, material audit adjustments and segregation of duties'; also 'there were some personal purchases made on a district credit card' and 'for the 21st century we did have one finding... it has to do with that same finding on the prior page of the personal expenditures that were made on a credit card that was through that program'; and 'the expenditures were over what was budgeted for which we just have to report that was for instruction and support services.'

The source