The Lake Superior School Board received the 2018-19 audit report from Mary Reedy, an auditor from Clifton, Larson, Allen, on Tuesday, Nov. 12 at the William Kelley Schools media center in Silver Bay.
The district's financial statements were clear from any misstatements and were given a clean, unmodified opinion.
"Which is the best you can get," Reedy said.
Overall, Reedy said the district had a clean audit, with two weaknesses in internal controls and a minor compliance issue.
The internal control issues were mostly due to the district only having one business manager to review financial statements. Reedy recommended the board continue to review financial statements to act as a secondary control measure.
The compliance issue finding dealt with a contract award for field work at the Two Harbors High School. A Minnesota statute requires that all contracts must be "awarded to the lowest responsible bidder, unless there were reasonable and appropriate reasons documented in the minutes for not awarded the lowest bidder."
"We could not find that in the minutes. Sara (Girard) knew it was talked about, but it just wasn't documented," Reedy said.
Superintendent Bill Crandall clarified that the district had received two bids for work done on the THHS playing field last spring. The contract was awarded to the slightly higher bid because it allowed the field to be playable this season.
"It was a time crunch to get the field in playable condition," Crandall said. "One contractor had a process that would allow the field to be used this year; the other required a season off to reset the field."
In the future, the board will ensure this type of note makes it into the board meeting minutes.
The district general fund was reported to be healthy because it contained roughly two months of expenditures in the fund balance.