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A recent state audit of the Solen Public School District has identified 19 different areas of concern. In the 84-page audit report, some of the concerns included:

Finding 1 (page 42)
Documentation (known as “support” in audit terms) for financial statements were not kept. The audit team found that in both the general and building fund a total of $762,381 in opening balance adjustments had no support.

Finding 3 (page 44)
It’s important that entities perform bank reconciliations on a regular basis. This process matches the balances in accounting records to balances in the bank. Bank reconciliations are important to help prevent and detect fraud. In 2021, there were errors totaling $167,869, and in 2020 there were errors totaling $211,869.

Finding 7 (page 48)
The District did not provide a detailed budget that supports the approved mill levy. Budget preparation is important, as tax levies are calculated from the budgets that school districts develop.

Finding 9 (page 50)
Documentation was not kept for many of the purchases the audit team reviewed. During an audit, auditors select a random selection for review called a sample. In the sample, 45 checks were reviewed. Nine checks had no documentation for a total of $8,139 in purchases.

The audit also found the board of directors did not approve expenses totaling over $2,000,000. Additionally, the audit also found the information submitted to the Department of Public Instruction, which is used to calculate state funding for the District, was not accurate.

The business manager and superintendent who were in leadership roles during the audit period (July 1, 2019, until June 30, 2021) are no longer with the District. To read the full audit report, visit: https://ndsao.link/SolenPSD

“We appreciate the cooperation of the staff during this audit,” said State Auditor Joshua Gallion. “By improving the internal control framework, there will be greater transparency and accountability to address these issues to better serve their community.”

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