SAU and Timberlane Audits Have Same Adverse Opinion

Linked below are the just released 2014 SAU 55 audit as well as Timberlane’s 2014 audit.


From SAU 55’s 2014 audit:

Basis for Adverse Opinion on Governmental Activities
As discussed in Note 9 to the financial statements, management has not recorded the long-term costs of retirement health care costs and obligations for other postemployment benefits in the governmental activities. Accounting principles generally accepted in the United States of America require that those costs be recorded, which would increase the liabilities, decrease the net position and increase the expenses of the governmental activities. The amount by which this departure would affect the liabilities, net position, and expenses on the governmental activities is not readily determinable.
Adverse Opinion
In our opinion, because of the significance of the matters described in the “Basis for Adverse Opinion on Governmental Activities” paragraph, the financial statements referred to above do not present fairly the financial position of the government-wide financial statements of the School Administrative Unit No. 55, as of June 30, 2014, or the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.


This is exactly the same issue behind Timberlane’s adverse opinion, as well.  I have asked repeatedly for the auditor to be present at a TRSB meeting to explain the significance of these statements but the SB chairman will not do so. Today I sent an email out to a few Hampstead SB members asking them to request of the SAU chairman that the auditor be present at our next SAU meeting. I’m not a betting person but I’m willing to wager they will have no better success than I. Taxpayers should be asking why board members who have an obligation to protect your money and see that it is justly spent and fairly accounted for are restricted from talking to the auditor privately and thwarted from questioning her in public.

SAU 2014 – AUDITORS REPORT- FINAL.pdf (1)

2014 Timberlane – AUDITORS REPORT.pdf (2)

P.S. Yesterday I placed an official Right to Know request with the SAU to see the multi-year lease contract for the photocopiers mentioned in Timberlane’s audit. I had requested to see this contract two months ago. As my faithful readers know, RSA requires multi-year contracts to be approved by voters unless they contain a non-appropriation clause.

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2 Comments

Filed under Sandown Issues

2 responses to “SAU and Timberlane Audits Have Same Adverse Opinion

  1. Curt Springer

    Donna,
    Have you looked at any other district of SAU auditor reports to see if this is noted? I just tried poking around SAU 16 which covers Exeter and adjacent towns and couldn’t find any auditor’s report, doesn’t mean it wasn’t there.

    This might be something that puts other districts out of conformance with GAAP as well, I really don’t know.

    It does seem to me that you ought to be able to have the auditor explain this to the school board or joint SAU board. The problem isn’t just with the chair as of course the majority could force an invitation if the chair didn’t want to do it.

    • Yes, I know that the larger districts do not have this deficiency. It is not uncommon with the small districts. For a regional district, however, this has more importance IMHO.

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