CCSD gets ‘clean bill of health’ on finances

Audit reports revenue increases in fiscal year

The Clark County School District has received a clean opinion on its yearly financial audit, meaning an auditor thought financial statements were fairly stated.

During a joint meeting Monday, the School Board and audit advisory committee heard a presentation about an independent audit report for the fiscal year that ended June 30.

The board voted 5-0 to approve the school district’s responses to recommendations by auditor Eide Bailly LLP. Trustee Danielle Ford attended the meeting by phone, and Trustees Katie Williams and Lisa Guzman were not in attendance.

“It is wonderful to hear that we have a clean bill of health in our finances,” Trustee Evelyn Garcia Morales said.

The school district’s total revenues increased by $25.4 million — up to nearly $3.8 billion — for the fiscal year, compared with 2020. That’s about a 0.68 percent increase.

Property tax, sales tax and operating grants increased “due to an increase in home prices, taxable sales in Clark County, and federal funds related to COVID-19,” the audit report said.

There was a decrease in some areas, though, including state aid through the Distributive School Account, Student Activity Fund money, room taxes and unrestricted investment earning.

Total expenses increased by about 1.6 percent, up to $3.6 billion.

“This is attributed to the increase in federal spending as the result of additional funds related to COVID-19,” according to the report.

The district ended the fiscal year with a 2.25 percent unassigned general fund balance — the highest it has been in more than 10 years.

The audit report noted “certain deficiencies in internal control” that are considered to be a “material weakness.”

That relates to an annual financial report that did not identify certain accruals that should have been made at year’s end, according to the audit report.

During testing of the district’s delinquent personal property tax receivable, “we noted that the recorded receivable was materially lower than the amount confirmed by Clark County resulting in an understatement of the property tax receivable and unavailable revenue in the Debt Service Fund,” the report said.

Auditors also identified a “significant invoice relating to construction services” rendered before June 30 had not been accrued, according to the report.

Clark County provides a 600-page document that school district employees go through manually, and “there were some items missed,” Chief Financial Officer Jason Goudie said.

He said the district is looking into working with the county to obtain the information in a more usable format.

Goudie said the district is also looking into using electronic automation and a second review on the manual process, as well as better training for new employees.