New Lake Superior School Board members sworn in
The Lake Superior School District School Board held its annual organizational meeting Tuesday, Jan. 8, at Two Harbors High School. Members were selected to serve on other boards and committees in the community and officers were selected.
Recently re-elected board member and former vice chairman Tom Burns was selected as board chairman. Board member Cyndi Ryder will serve as vice chairman.
Al Ringer will continue as treasurer and Mark LeBlanc will continue as board clerk.
New and returning board members were sworn into office. Joining the board this year are Dean Korri, Steve VanHouse and Traci Tiboni. Tom Burns retained his seat.
No red flags in audit
After the organizational meeting, the board heard results of the 2017-18 financial audit from auditor Tim Bradshaw from Wipfli, an accounting firm in Duluth. The district's basic financial statements were clear from any misstatements. There were two weaknesses in internal controls, partially due to the turnover in the business manager position.
"Basically, the bank reconciliations hadn't been done in some time time. That's something I know has been an issue here in the past, so Sarah (Girard) good luck," Bradshaw said.
One significant deficiency was in the preparation of financial statements. Wipfli prepared the district's financial statements, which meant this deficiency had to be marked.
There were no red flags in the single audit. But, there was one area of noncompliance with Minnesota statutes tested as bank balances over $250,000 need to be collateralize as they're higher than the FDIC insurance coverage amount.
"That's a tricky one because it's on the district to watch it and let the bank know when there's going to be a surplus in the account," Bradshaw said. "It was probably a month where a tax deposit came in, since those come in such large amounts. It's not uncommon either and will hopefully be cleaned up going forward."
The district general fund was reported to be healthy because it contained roughly two months of expenditures in the fund balance.
The full audit report will be posted soon at isd381.k12.mn.us/district-information/business-office.