Board Report October 2025

PONTIAC TOWNSHIP HIGH SCHOOL DISTRICT 90 17-053-0900-17 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2025

SECTION II - FINANCIAL STATEMENT FINDINGS

2025 - 001

1. FINDING NUMBER:

2. THIS FINDING IS:

Repeat from Prior Year?

2023

Year originally reported?

3. Criteria or specific requirement A system of internal control over financial reporting does not stop at the general ledger. A system of internal control over financial reporting includes preparation of your financial statements independent of the audit organization.

4. Condition The audit organization is preparing the District's financial statements and supplementary information in their entirety.

S. Context Not Applicable

6. Effect The financial statementsand supplementary information could be materially misstated due to self-review of financial statements prepared and audited by the same person/organization.

7. Cause District has personnel who possess suitable skill, knowledge, and experience to oversee the preparation of the financial statements, but they do not have the professional training to determine if all of the professional standards regarding financial statement presentation and disclosures applicable to financial reporting for the District are met. 8. Recommendation The District should consider having the financial statements prepared by a qualified staff member or contract with someone independent of the audit organization to prepare the financial statements. 9. Management's response The District has considered the impact of having the auditor prepare the financial statements and the SEFA, and determined, based on the basis of accounting followed, the prescribed formats in presentation, and oversight by its personnel, that this sufficiently reduces any risks of material misstatement with financial reporting matters and mitigates the cost benefits of adding personnel with further qualifications.

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