Kenton County School District’s annual financial audit, the results of which were presented to the school board on Monday, found the financial procedures to be up to standard.
Kentucky school districts are required to undergo financial audits every year “to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions,” according to LBMC, the independent accounting firm that performed the audit. All audits must be performed by independent third parties.
While not foolproof, audits are a way of ensuring public institutions have good financial procedures in place and are accurately reporting on their monetary figures. Auditors can suggest policy changes, flag questionable transactions, point out record-keeping deficiencies and otherwise indicate shoddy processes with the institution they’re investigating.
An unmodified opinion from an auditor means no changes were suggested, which generally suggests the institution is in good shape as it relates to its financial procedures.
Audits do not level judgment on whether the things the school is spending money on are worthwhile.
Highlights from the audit include the following:
- Overall, district assets increased by about 10% over the preceding fiscal year, from $362 million to $401 million
- Total district liabilities decreased by about $11 million
- Total revenues decreased by about $5 million
- Total expenditures decreased by about $10 million
Read the district’s complete audit, including the fiscal year’s financial statements and reconciliations, below.