Nolte, Cornman & Johnson P.C., of Newton, has released an audit report on the Hartley-Melvin-Sanborn Community School District.

According to the report, the district’s revenues totaled $11,486,078 for the year ended June 30, 2020, which represents a 7.80 percent increase from the prior year. Expenses for district operations for the same period totaled $8,592,114, a 7.48 percent decrease from FY19.

The report states the increase in total revenues is mainly due to increases in revenues from property tax and charges for service. The decrease in total expenses occurred mainly in the instruction function.

Five audit findings are detailed in the audit report. The findings address such issues as lack of segregation of duties, reliable financial statements, certified budget, certified enrollment and board policies. Nolte, Cornman & Johnson provided the district with recommendations to address each of the findings.

Three of the findings are repeated from the prior year.

“The Board of Education has a fiduciary responsibility to provide oversight of the district’s operations and financial transactions. Oversight is typically defined as the ‘watchful and responsible care’ a governing body exercises in its fiduciary capacity,” the report stated.

A copy of the audit report is available in the district secretary’s office, the Office of the Auditor of State and on the Auditor of State’s website at https://auditor.iowa.gov/audit-report.