SH SD151 2024 fiscal year audit unverifiable with township treasurer behind on bookkeeping

An independent auditor was unable to verify parts of South Holland School District 151’s financial reports from this year due to a lag in recordkeeping from the township treasurer. 

The Thornton Township Trustees of Schools is responsible for managing district investments, as well as accountable payable. The township treasurer’s office is about three years behind in its recordkeeping, which has prevented districts from receiving full insight of their finances. Michael Sheahan is its current treasurer.

The District 151 board didn’t reach quorum and could not conduct official business at its meeting in April. But members who were present — president Patrice Burton, vice president Loretta Wells, and member Corean Davis — elected to hear the independent auditor’s report to bring for an approval vote at a following meeting.

Baker Tilly auditor Michael Malatt presented the fiscal year 2024 financial audit. He was unable to issue a “clean,” or fully confident, audit of the district’s finances last year because of a lack of clarity on beginning and end-of-year numbers from the township treasurer, he said.

“It’s a domino effect,” Malatt said. “You are at the behest of them getting their house in order and being able to issue that audit report.”

The township treasurer services several south suburban districts, including West Harvey-Dixmoor School District 147, Thornton Township High Schools District 205, and Harvey School District 152 also received unverified reports for its 2022 and 2023 fiscal year audits due to the treasurer’s failure to reconcile books.

Over the past year, the school districts have appointed their superintendents to liaise with the township treasurer, which is now convening more regularly beyond its quarterly schedule as school officials work to bring stability to the troubled office.

“Right now, we can’t get a clean bill because [the Trustees of Schools] don’t have a clean bill,” board member Patrice Burton said. 

Since 2021, independent auditors have given “qualified” opinions on the district 151’s finances, meaning a lack of validation in their findings. According to an audit from 2022, “…the bank reconciliation procedures were not performed by the Thornton Township School Treasurer’s Office and we were unable to obtain sufficient appropriate audit evidence about the carrying amount of the District’s investments.” 

Despite the lack of total verification, Malatt said the district had a “strong financial year.” Its overall fund balance decreased by $1.3 million from paying off debt, including a debt issuance in advance. 

According to Superintendent Teresa Hill, the board has wanted to cut ties with the Thornton Township Trustees of Schools as early as 2017. 

Discussions about cutting ties went into overdrive in February, where Hill suggested separating from the township and hiring staff to keep the district’s bookkeeping in-house.

In March, the SH SD151 board voted to officially withdraw from Thornton Township Trustees of Schools after undergoing years of financial reporting challenges at the hands of the Thornton Township Trustees of Schools, but the vote failed. Ernest Clark, Assistant Superintendent and Chief School Business Official, was appointed district treasurer that same night.

All finances currently being managed by the township treasurer will be transferred to the district as a result of the withdrawal. Clark’s appointment as treasurer will go into effect July 1.