Mid-Prairie audit released

WELLMAN — The state of Iowa has released the results of an independent auditor’s report on the Mid-Prairie Community School District for fiscal year 2022. The report sounded no major alarms, saying the district “complied, in all material respects, with the compliance requirements … that could have a direct and material effect on each of its major federal programs.”

The report said General Fund revenues increased from about $19.1 million in fiscal year 2021 to over $19.78 million in fiscal year 2022. General Fund expenditures over the same period grew from about $18.87 million $19.52 million. The school district’s general fund balance grew by 6.52%, to $4,428,058.

“The increase in General Fund revenues was primarily due to increases in revenues from state funding and federal awards,” the report said. “The increase in total General Fund expenditures was largely due to restricted grant expenditures for operation and maintenance of plant support services.”

The report found that the district lacked “segregation of duties,” a frequently repeated issue for local governments and small schools with limited staff. In its official response to the document, Mid-Prairie said it had taken extra precautions to offset the lack of traditional oversight, but would continue to review its efforts.

“The District has implemented additional controls such as mandatory vacations for accounting staff and the engagement of an independent accounting professional who performs unannounced reviews of the current activities and processes,” the school district wrote. “Written reports are provided to the Superintendent after each review visit and added to the employee’s personnel file.”

Another finding of the report said the district understated its certified enrollment by 7.9 students, something school officials said they’d direct auditors to contact the Department of Education about.

The third finding highlighted expenditures that exceeded the schools’ certified budget. While that’s not unusual for districts when board members fail to address unplanned spending with a budget amendment, school officials said this instance was a case of one line item exceeding its certified amount, not the overall budget number.

“It is always the District Business Office intent to assure expenditures are estimated and budgeted properly,” reads the district’s response to the finding, included in the report. “It was not recognized that the estimated change was inadequate until after the deadline for filing amended budget amounts. This is under review for internal corrective action.”

Comments: Kalen.McCain@southeastiowaunion.com