November 18, 2024 at 5:30 PM - School Board Work Session

Description:  A review and comment (R&C) is required for school facility projects with costs in excess of $500,000 per site if the district has a capital loan outstanding or $2 million per school site.
Voter-approved elections, regardless of project purpose require an R&C if project costs per site exceed $2 million. 
The commissioner has, by statute, 60 days in which to provide a school facility project with a positive, negative or unfavorable review and comment. Given the 20-day publication deadline prior to a bond referendum and additional lead time that may be necessary for local publication, review and comment submissions should be received by the Minnesota Department of Education (MDE) at least 90 days prior to a planned bond referendum. It has been long-standing policy that the timeline for commissioner approval halts if required components of the review and comment document are missing.  

Description:  School districts, charter schools, and educational cooperatives are required to have an annual independent financial audit, The purpose of an annual school district audit is to ensure that a school district's financial records and operations are accurate and in compliance with state and federal laws: 

• Verify financial data

Audits confirm that a district's financial statements, documents, and reports are accurate and fairly presented. 

• Identify areas for improvement

Audits can help identify areas where a district can improve its operations and fiscal management. 

• Protect taxpayer dollars

Audits can help ensure that a district's budget is well managed and that taxpayer dollars are protected. 

• Comply with laws

Audits ensure that a district is in compliance with state and federal laws. 
In Minnesota, school districts must undergo at least 25 annual audits as required by Minnesota Statutes. 


The following are included in the annual audit:
Report on financial statements. • List of school board members for the reporting year. • Management’s discussion and analysis (prepared by the finance officials of the LEA). • Report on entity's internal control structure. • Report on entity's compliance with laws and regulations. • Corrective action plan for all written findings. • Corrective action plan should contain the following elements for each finding: 1. An explanation of any disagreement with the finding. 2. Corrective actions planned in response to the finding. 3. The official responsible for ensuring completion of the corrective action.  4. Anticipated completion date. • UFARS Fiscal Compliance Table. • Single audit reports, if applicable. • Management letter (if no management letter was issued to the district, a separate and additional memorandum stating that fact is to be included with the audit submission).