Audit finds district's financial reports in order

September 27, 2019

Independent financial auditors have given the Stillwater Area Public School District an “unmodified” opinion on its annual audit of basic financial statements.

The 2018-2019 Comprehensive Annual Financial Report, upon which the annual audit is based, showed no deficiencies in the district’s internal control over financial reporting that was considered to be material weaknesses. The results of the auditor testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. The audit was conducted by the auditing firm Malloy, Montague, Karnowski, Radosevich & Co. (MMKR).  

School districts, charter schools, and educational cooperatives are required to have an annual independent financial audit.  The audit and the financial statements included in the audit must be based on Generally Accepted Auditing Standards, the federal Single Audit Act, and the Minnesota Legal Compliance Guide issued by the Office of the State Auditor.  Minnesota Statutes, section 123B.77, requires reporting entities to submit audited financial data to the commissioner of the Minnesota Department of Education and to the Office of the State Auditor

The district closed the books with an unassigned fund balance totaling 5.5 percent, which is above the school board’s policy to maintain at least a five percent unassigned fund balance. The unrestricted fund balance, or “rainy day fund,” equals about four weeks of operations for the district assuming level spending throughout the year. 

The complete financial report is available at stillwaterschools.org/audit.