Henryetta Public Schools received a positive financial review during a recent school board meeting, as auditors presented the district’s independent audit for the 2024-2025 fiscal year, citing strong fund balances, clean compliance results and no material findings.

The audit was presented by phone by Chris Wilson, a certified public accountant contracted by the district. Wilson noted that the audit’s completion was delayed due to late federal guidance that affected school districts nationwide — Federal delay impacted audit timeline

According to Wilson, the federal government released its required compliance supplement nearly seven months late, preventing auditors from issuing final reports until the guidance was published. This delay affected school audits across Oklahoma, forc- ing districts and auditors into a condensed review period late in the year.

Despite the delay, Wilson said the audit process for Henryetta Public Schools was smooth, citing strong cooperation and communication from district staff.

— Clean audit results across all major areas The audit included three primary components: the financial statements audit, a governmental compliance audit and a federal programs audit.

For financial reporting, Henryetta Public Schools received a qualified opinion under the regulatory accounting system required by the Oklahoma State Department of Education. Wilson explained that this qualification is standard for most Oklahoma school districts and relates to the absence of fixed-asset depreciation values on balance sheets – an accepted statewide practice.

Importantly, auditors reported:

• No material weaknesses • No significant deficiencies • No major compliance violations Wilson described the audit as “really outstanding,” emphasizing that no issues rose to the level of formal findings.

— Federal programs receive highest rating Henryetta Public Schools also received an unmodified opinion, the highest rating possible, for its federal programs audit. The largest federal program reviewed was Child Nutrition, which accounted for more than 40 percent of the district’s total federal expenditures during the year.

Auditors reported no findings related to federal funding or program compliance.

— Strong General Fund Balance Reported The audit showed the district in a solid financial position:

• Total General Fund revenue: $10.4 million

• Total General Fund expenditures: $9.3 million • Year-end General Fund balance: approximately $1.9 million The carryover balance represents roughly 19 percent of annual general fund revenue, which Wilson described as exceptionally strong. He noted that while districts must monitor balances to avoid potential state aid penalties, Henryetta remained well within acceptable limits.

— Special Revenue, Building Funds remain stable

Henryetta’s Special Revenue Fund, which includes building and child nutrition funds, ended the year with just over $1 million in carryover:

• Approximately $800,000 in building funds

• Approximately $200,000 in child nutrition funds Auditors noted that these balances have fluctuated modestly over time based on planned projects and expenditures, reflecting deliberate financial management rather than excess accumulation.

— Activity Fund issues explained The audit also reviewed the district’s Activity Fund, which had a yearend balance of approximately $293,000, consistent with previous years.

Two small negative balances and a reconciling item were noted in the report. Wilson explained these were the result of clerical coding issues related to state reporting software (OCAS), not missing funds. The discrepancies have since been corrected for future reporting periods.

— Routine management recommendations issued Auditors issued a brief management letter with standard best-practice reminders, including:

• Improved documentation for travel reimbursements, such as listing all individuals included in meal or lodging expenses

• Ensuring non-kickback affidavits are obtained for vendor invoices exceeding $25,000, as required by state law Wilson emphasized that these recommendations are common across school audits and do not indicate financial misconduct or risk. — Auditor praises district staff Wilson concluded by commending Henryetta Public Schools staff for proactively contacting auditors when questions arise, particularly in regulatory gray areas.

“That tells us you’re trying to do things the right way,” he said, adding that open communication helps prevent future compliance issues.

The school board received the audit presentation without objection. District administrators indicated auditors remain available should board members or staff have follow-up questions.