R-II district gets positive audit, ‘no deficiencies’

By: Derrick Forsythe, Correspondent
Posted 1/19/21

The Wright City R-II School District continued its streak of positive feedback on its annual audit, as evidenced by the latest report heard by the school board during its monthly meeting on Dec. 17.

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R-II district gets positive audit, ‘no deficiencies’

Posted

The Wright City R-II School District continued its streak of positive feedback on its annual audit, as evidenced by the latest report heard by the school board during its monthly meeting on Dec. 17.

R-II received an unmodified opinion for financial operations for the fiscal year ending June 30, 2020. This year’s audit was conducted for the first time by KPM CPA and Advisors.

“I’m happy to say the district received an unmodified opinion, and no deficiencies were identified,” said R-II Chief Financial Officer Konee Box. “An unmodified opinion indicates the auditors are satisfied with the district’s financial reporting and believe the operations are in good compliance with governance principles and applicable laws. This is the type of opinion districts strive to receive.”

While the audit yielded no critical feedback, KPM did provide insight concerning the security of the district’s fund management. 

“One recommendation made was that the district should frequently evaluate its cyber security risks and take steps to limit those threats,” explained Box. “That is a precaution that is given to all districts whose audit was performed by that auditing firm.”

Box said the results align with the district board’s goals and are validation that the proper practices are in place when it comes to handling funds.

“One of the board’s objectives relating to governance is that the district maintains district financial solvency by maintaining a clean audit and sound financial practices,” said Box. 

The auditor’s presentation to the board was conducted virtually for the first time due to COVID-19.  The auditors also included in the report that COVID-19 has been identified as a significant uncertainty that could impact future operations because the detrimental impact of the virus is not yet fully determinable, but will likely be significant for both the district and overall economy.

Additionally, the audit report included information regarding the district’s two partial debt advance prepayments on a pair of bonds during the fiscal year ending June 30, 2020. This resulted in a savings of $310,812 for the district.

“I just want to say it takes a lot of hard work, effort, time and dedication from a lot of people within the district for the district to receive a clean audit each year,” added Box. “This includes every administrator, assistant, processing coordinator and anyone else involved with the procedures and compliances of the district’s finances.”

In alignment with its practices to maintain a fresh perspective and follow board policy, R-II continues to open the auditing process to new potential auditing firms by going out for bid. KPM is among four different firms to conduct audits during Box’s 22 years as CFO.

“Each of them bring a different outlook,” said Box. “Though they generally look at the same stuff, you’ll find different auditors will be looking more detailed into certain things. It’s a good thing to change up.”

The auditing process typically begins around July with a field visit to the district and must be concluded by Dec. 31.

“It’s a long and thorough process that involves a lot of people and preparation,” said Box.

Wright City School District

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