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EASTPOINTE — The finances in Eastpointe Community Schools are in good shape, according to a recent audit conducted by the Michigan-based accounting and advisory firm, Yeo and Yeo.
At the district’s Feb. 24 Board of Education meeting, certified public accountant Jennifer Watkins, audit and business consulting adviser with Yeo and Yeo, gave a PowerPoint presentation on the district’s 2024 audit. The district’s fiscal year ran July 1, 2023, through June 30, 2024.
An audit is a thorough check of accounts within the school district. The auditor’s responsibility is to express opinions on the financial statements in the district based on the firm’s audit. The auditor is a third party who gives an opinion on the district’s financial statements.
“Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement,” the audit states. That could include fraud or error.
The presentation included an overall audit of the district’s entire financial picture, plus a single audit focused on federal funds that the district received. According to the presentation, the school district received an unmodified opinion, also known as a clean opinion.
“That’s the best opinion you can get, and that’s what you want to see,” Watkins said. “Basically, it means that your financial statements are free of any material misstatement.”
Recommendations from the firm were for the district to improve on use of grant codes and the overall budget transparency reporting on the district’s website.
According to the audit report, the district’s assets are at $50.1 million, which Watkins said the majority was of the general fund. Assets also include the debt service funds and the 2024 capital projects fund. Liabilities, including accounts payable and salaries, were at $16.071 million. The PowerPoint presentation listed the district’s fund balance as $33.9 million with $16 million in the general fund.
A fund balance works like a savings account and can be used for emergencies, including loss in enrollment during the school year, or for an unexpected capital project, such as a roof replacement.
Watkins’ PowerPoint presentation also highlighted the district’s 10-year trend in enrollment, which has steadily decreased over the years. In 2015, there were 3,539 students in the district, according to the presentation, and 2,193 students during the last school year.
The PowerPoint also included a 15-year foundation allowance trend analysis. The foundation allowance is the amount of per-pupil funding per district. The audit report stated in 2015 that the district received $7,592 in per-pupil funding and $9,608 in per-pupil funding in 2024.
Watkins thanked Executive Director of Business and Operations Robert Carlesso for his assistance with the audit.
“We couldn’t have gotten through the audit without you,” Watkins said. “I very much appreciate it and you will be missed.”
The 2024 audit was presented a few days before Carlesso retired. At press time, his last day with the district was Feb. 28.
“Robert has been an integral part of improving our school facilities in his time here,” Superintendent Christina Gibson said. “He was responsible for helping to lower tax rates for taxpayers, refinance our millage with the city, brought forth the sinking fund, as well as instrumental in helping to pass the 2023 bond.”
DeeAnn Irby will fill the vacancy; at last Monday’s meeting, the school board approved her position 7-0 as assistant superintendent for finance and operations. The approval was included in the consent agenda.
“I want to congratulate Robert in his retirement. I know he’s earned it,” said Vice President Robert Roscoe, who added that he looks forward to working with Irby as well.
