Audit uncovers reporting errors in District 158
An annual audit of Huntley Unit District 158's finances has revealed numerous reporting errors that may have hurt the district when negotiating a new contract with its teachers.
The district overstated by more than $1.5 million how much money it had on hand at the end of the 2006-07 school, according to a draft report of the audit.
The errors occurred on District 158's annual financial statement, a snapshot of the district's finances that it submits to the state and federal governments each year.
School board members said the errors may have negatively affected the district during the recently concluded teacher contract talks. The district's fund balance at the end of the 2006-07 school year became an issue during negotiations.
"Had those numbers been correct, it would have made negotiating on the teacher's contract easier," board member Larry Snow said.
The draft report also shows the district had $10 million of construction in progress at the end of last year relating to the Marlowe Middle School addition - although construction was over by the start of last year, school board members said.
"We don't have any construction in progress," board Vice President Tony Quagliano said. "We're done."
The errors came on top of repeated issues District 158 has had getting its audits completed on time and accurately.
"It's a little disconcerting, but it's mitigated by the fact that they got last year's audit out as fast as they did," Quagliano said.
Officials praised the district's auditor, Evans, Marshall and Pease of Rolling Meadows, when the it was able to submit the district's audit on time last year, despite difficulties caused by the previous auditor's delay.
But things didn't go as well this year. The auditor missed an October deadline for submitting the district's financial statement to the state because it initially overstated the district's revenue.
Paul Thurman, senior partner at Evans, Marshall and Pease, declined to comment.
"I'm hesitant to discuss the audit without the permission of the client," Thurman said.
The auditor is working with the district to correct the issues and will return to the school board with a final report, board members said.
The draft report presented this month shows the district reported it had about $640,000 more in registration fees and about $600,000 more in property taxes than it actually had at the end of the 2006-07 school year.
Both items should have been counted on the district's 2007-08 balance sheet instead of the previous year's.
The report also shows the district overpaid the state's teachers' retirement system by $143,400 and overstated the balance in district insurance funds by about $146,000.