WBCSD receives clean audit

PRIEST RIVER — West Bonner County School District received a clean audit at its Oct. 26 board meeting.

The audit was done by DeCoria, Blair & Teague, P.S. out of Spokane.

“In our opinion, West Bonner County School District No. 83 complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021,” company officials said in the audit.

However, the audit of WBCSD’s financial statements revealed two significant deficiencies in internal control over financial reporting. The auditors said that the significant deficiencies in internal control over financial reporting were not considered to be a material weakness.

The auditors said that the overall size and experience of the district’s business finance department makes it difficult to allow for a complete segregation of duties for an effective system of internal control over financial reporting. Although the district’s management continues to implement various procedures to improve segregation of duties related to most of the day-to-day operations.

However, the auditors found that WBCSD has a limited number of staff with sufficient understanding of the accounting principles necessary to provide adequate oversight and review of the various financial reporting requirements in accordance with accounting principles generally accepted in the United States of America.

The finding of not enough separation of duties at the district office came up again, said Superintendent Paul Anselmo. WBCSD gets this finding regularly since the staff is not large enough to segregate duties of control of financial reports. Many small school districts receive this finding, he said.

The auditor from DeCoria, Blair & Teague, P.S. said that it would be fiscally irresponsible” for the district to hire two to three additional employees in order to segregate duties over financial reporting.

In addition the auditors recommended that month-end, quarter-end and year-end closing procedures, as applicable, continue to be evaluated for potential opportunities to improve segregation of duties, as well as oversight and review procedures. The auditors also suggest that WBCSD consider consulting with external accounting sources for unusual or overly complex accounting issues, as deemed necessary, or to assist in oversight and review procedures of more complex and unusual accounting matters.

During the fiscal year 2019-2020, in accordance with GASB Statement No.54 and per guidance by Idaho State Department of Education, WBCSD was required to establish two new governmental special revenue funds to track and record proceeds and specific revenue sources which are restricted to expenditure of specified purposes.

The auditors said that these amounts were properly reflected in the district’s accounting records but were not properly classified within separate special revenue funds.

Anslemo said that all funds were accounted for and allocated correctly, but this was more of a minor accounting discrepancy where the fund was not coded in the exact same spot.

“It was a good clean audit and everything was where it was supposed to be,” said Anselmo.

WBCSD is audited every year. The superintendent said that he prefers to be audited annually in order to provide transparency to taxpayers and because the district wants to make sure they are following all accounting law.

“It is always a relief to have an audit and receive a clean audit, because then we [district] know that we are on track,” said Anslemo.