State Auditors Say Williston Schools Left Millions In Transactions Unverified

An independent audit of Williston Basin Public School District No. 7 for fiscal years 2023 and 2024 identified widespread material weaknesses in financial controls, recordkeeping and oversight, according to a report released July 7 by the North Dakota state auditor.

Auditors issued a disclaimer of opinion on the district’s financial statements, citing an inability to obtain sufficient evidence to support balances and transactions. The report found bank reconciliations were not completed for much of fiscal year 2023, and a June 2023 reconciliation showed an unreconciled difference of $771,625. Audit adjustments later expanded that gap to $6,027,957 between district records and bank statements.

The audit also flagged unsupported opening balance adjustments that reduced the general fund by $1,877,494, along with significant issues tied to journal entries. In 2023, $6,391,503 worth of entries lacked evidence of independent review, while in 2024, $5,353,372 in similar entries showed the same issue. Upon forther rewview additional entries totaling $1,957,488, with projected misstatements estimated at $3,047,933.

Auditors also found documentation gaps tied to the Title I program. Of 60 transactions tested, 47 did not include supporting records, resulting in $318,881 in known questioned costs. Based on that sample, auditors projected questioned costs could reach $1,279,591 out of total Title I spending of $1,491,469.

The report points to breakdowns in internal controls, including missing documentation, lack of reconciliations and insufficient oversight of financial activity. Auditors recommended the district complete timely bank reconciliations, maintain support for all transactions and require independent review of accounting entries before they are posted.

District officials submitted a corrective action plan in response to the findings.

Get our free mobile app

To read the full report, click Here.