News Photo by Reagan Voetberg Hinks Elementary students and staff presented their good news to the Alpena Public Schools board in a rendition of the book “Twas the Night Before Christmas” on Monday night.

ALPENA — Chelsea McConnell, CPA at Straley, Lamp, and Kraenzlein P.C., presented the Alpena Public Schools board of education with the fiscal year 2025 audit at their regular board meeting on Monday night. The district was issued an unmodified opinion, which is the highest level of opinion that can be issued in an audit.

“We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Alpena Public Schools,” the audit stated. “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the school district, as of June 30, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”

Significant risk areas in the audit included management override of control; revenue recognition and reporting with compliance and grants; and internal service funds. The management override and revenue recognition categories are high risk because fraud could exist in those areas. Internal services funds are high risk because of the complexities and materiality of those funds, McConnell said.

More audit evidence has to be collected in significant risk areas than in other lower risk areas before an opinion is issued.

Management override of control is when senior management deliberately bypasses or overrides a company’s internal control policies and procedures.

Revenue recognition and reporting is the accounting process of identifying when to record earned revenue.

The internal service fund accounts for services it provides to the school district’s other funds. The school district’s self-funded health insurance, prescription drug program, and self-funded dental and vision plans are accounted for in this fund.

There were no deviations in the high risk areas found in the course of the audit, McConnell reported.

There were also no internal control deficiencies to report. Internal control is a company’s system of policies, procedures, and checks to ensure reliable financial reporting.

Assets increased by about $8.8 million, McConnell said.

Liabilities decreased by about $16.8 million which was primarily due to a significant decrease in the pension liability, she said.

Revenue increased by about 1% and expenses decreased by about 5% from the previous fiscal year, McConnell said.

She said that the budget for fiscal year 2025 was very reasonable, with actual revenue in the general fund exceeding the budgeted amount by about $851,000, or 1.5% of the total actual revenue.

“We don’t have any findings, we don’t have any question costs…everything was very clean with the single audit,” McConnell said.

The board members present voted unanimously to approve the 2025 financial audit update. Board Member Sarah Costain was not in attendance.

IN OTHER BUSINESS

*The board approved the motion to request a distribution of $40,000 from the Granum Family Alpena Board of Education Fund for the Alpena High School field upgrade loan.

*The board approved the AHS and Thunder Bay Junior High proposed new courses.

*The Board approved Strategic Plan goals in personnel and stewardship.

*Hinks Elementary students and staff presented good news to the board about all they have been learning in class with a Christmas themed presentation.

*The board discussed a wish list of projects that need to be done at schools in the district, including a weight room at AHS, playground equipment, and AHS auditorium renovations.

*Superintendent Dave Rabbideau received an “effective” rating by all board members in a roll call vote in his annual superintendent evaluation. That is the highest rating he can receive.