By Aberdeen Insider - December 18, 2025 in NOTICE OF AUDIT
OF THE FISCAL AFFAIRS OF THE
FREDERICK AREA SCHOOL DISTRICT NO. 6-2
Notice is hereby given that the Frederick Area School District No. 6-2, Frederick, South Dakota, has been audited by Cahill Bauer & Associates, LLC for the year ended June 30, 2025. A detailed report thereon is available for public inspection, during normal business hours, at the business office of the School District, and also available at the Department of Legislative Audit in Pierre, South Dakota or on the Department of Legislative Audit website at http://www.state.sd.us/legislativeaudit/Reports/reports_all.htm.
The following findings and recommendations provide a brief description of material weaknesses in internal control that are described in more detail in the audit report.
Finding: A lack of segregation of duties over revenues and expenditures exists, which could result in errors not being found in a timely manner.
Recommendation: We recommend a high level of awareness be maintained by management to assist in preventing, detecting, or correcting matters that may arise due to this internal control weakness. Compensating controls should be implemented as necessary.
Finding: We proposed material audit adjustments that would not have been identified as a result of the School District’s existing internal controls, and therefore could have resulted in a material misstatement of the School District’s financial statements.
Recommendation: It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost and other considerations.
Finding: The School District does not have an internal control system designed to provide for the preparation of the annual financial statements being audited, including required footnotes and disclosures, in accordance with generally accepted accounting principles. As auditors, we were requested to draft the financial statements.
Recommendation: It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Finding: The School District is required to properly calculate payroll deductions based on the appropriate compensation as defined by law.
Recommendation: The School District should implement a review process for payroll that can identify errors and/or miscalculations in payroll.
CAHILL BAUER & ASSOCIATES, LLC
Published twice on December 18 and December 25, 2025, at the total approximate cost of $52.52 and may be viewed free of charge at www.sdpublicnotices.com and www.aberdeeninsider.com