Leetonia schools hit for audit not in GAAP format
LEETONIA- The Leetonia Exempted Village School District audit released Tuesday showed a non-compliance in the financial statement level, but was clean otherwise.
According to the state Auditor’s Office report, the district failed to file its financial report according to generally accepted accounting principles (GAAP) as required of all school districts.
In the audit report, an Official’s Response to the non-compliance finding states that the district prepares its financial statements in accordance with standards for government entities and does not restate its yearly finances according to GAAP at the end of each fiscal year since it requires the restating of existing information in addition to information that has “little value to the district.” The response also notes that since the lack of GAAP statements has had no impact on the district’s dealing with bond underwriters, banks or vendors, the district administration has decided it is in the “best interest of the district’s tax payers not to spend scarce resources of time and money on the, argumentatively, useless year end conversion of its financial statements to a GAAP format.”
School Treasurer Jennifer Coldsnow said the district, which has been fined $750 for the non-compliance, does not use GAAP for its financial report due to the cost of transition from the current system. She said school administration is evaluating other less expensive options for the financial report that will meet the compliance requirement.
There were no other significant findings in the audit, Coldsnow said.
“Overall it came out really well and we’re happy with the results,” she said.
Kevin Howell can be reached at firstname.lastname@example.org