THE FINAL RECEIPT: MANCHESTER COMMUNITY SCHOOLS

Well, dear readers, I said I would give Manchester's audits one final look before closing the ledger. I'm glad I did. Manchester Community Schools' 2022-23 audit was clean. No material weaknesses were reported.

But the district's newest audit tells a different story.

The June 30, 2025 audit reports:

A MATERIAL WEAKNESS IN INTERNAL CONTROLS OVER FINANCIAL REPORTING.

The finding involved several year-end accounting adjustments that the auditor said were material to the financial statements.

Among them was a particularly large one:

💰 $4.55 MILLION

The auditor reported that checks had been backdated in the current year, causing cash and accounts payable in the 2024 Bond Capital Projects Fund to be understated by approximately $4.55 million.

And the auditor identified the underlying condition rather plainly:

"lack of management oversight."

Now, an important distinction.

I am NOT suggesting the phrase "backdated checks" means misconduct. The auditor identified this as an accounting and internal-control problem, and that is exactly how I am reporting it.

Management agreed with the finding and said new year-end closing procedures, processes and system controls are being implemented, with remediation expected by June 30, 2026.

That is the receipt.

No embellishment required.

And with that, I think Lady Budgetdown can close Manchester's ledger for the day. 🪶

Source: Manchester Community Schools, Audited Financial Statements, year ended June 30, 2025 — Finding 2025-001
With receipts and respect.

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