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District Audits

When is the school district audited?

The school district is required to have an annual audit from an outside firm, per board policy DIE. The report must be submitted to DESE. Items in the district audit include:

  • General, Special Revenue, Debt Service and Capital Projects funds.

  • Fiduciary funds.

  • Proprietary funds.

  • Component units that do not issue their own financial statements.

  • Transportation records.

  • Attendance records.

  • Food service records.

  • Other programs, funds or processes as specified by the Board or required by law.

  • These items are per policy DIE-AP(1): Audit Process



When was the last district audit?

The most recent audit was presented to the Board of Education at the agenda item 8a at the December meeting. The livestream of the meeting where the audit was discussed can be viewed at the 1:30:00 mark.



Where can district financial information be found?

All audit information from previous years can be found in the board notes for November or December for the respective year. Likewise, any district financial information is public and posted on the district website. Transactions are approved monthly at board meetings.



What about audits from the State Auditor's Office?

Under Missouri law, the State Auditor's office may be called on to audit any political subdivision of the state if enough qualified voters of that political subdivision request the audit. The State Auditor’s office offers a Q&A about petition audits.


The school district is required to pay for the audit, which is costly. The payment comes from the district's incidental fund, where salaries, supplies, curriculum and instructional material, and classroom supports are also paid from. 


The last district audit requested by the State Auditor's Office was in 2012. The findings are posted on the State Auditor’s website. 

How are audits paid for? 
Per DESE, school audits are paid for out of the operations fund, where all items are paid from that it takes to operate a school district on a daily basis - staff, instructional supports, food service, transportation, etc. The district can use funds from reserves; however, the reserves are held in the incidental fund.  

Can we use bond money to pay for an audit?
No. Bond monies are paid out of the capital projects fund, which can only be used for items such as facilities and equipment, and may not be used for regular operational costs like salaries or supplies.


Local patrons supported the passage of a bond on the April 2, 2024 ballot called Paws for Progress. Under state law, the only way a school district can legally borrow money for school facilities’ improvements or construction on a full faith and credit basis is to see voter approval of a general obligation bond issue.

Has the district responded to audit requests from taxpayers?

The Mexico Ledger and KXEO requested a response from the district in February 2024. No other local organizations or individuals have reached out for information regarding district audit information.

The following response was written by the district's legal contact and provided to the media outlets in February 2024: 

“Pursuant to Board Policy, Mexico School District #59 has contracted with outside firms to conduct annual audits of the District.  The most recent audit was presented to, and approved by, the District’s Board of Education in December 2023.  All audit information is publicly available on the District’s website.  An audit conducted by the Missouri State Auditor would have significant financial implications on the District.  As District revenue is closely budgeted, the District would be required to divert funds currently intended for teacher salaries and student instructional support to pay for a state audit.  Additionally, state audits are a long and arduous process, usually taking over a year to two years to complete.   Therefore, while the District disagrees a state audit is necessary, and would strongly prefer to direct its time and resources to compensating its teachers and creating the best learning environment possible for its students, if a state audit is mandated, the District will work cooperatively with the State Auditor’s Office to complete such an audit.”


What if I have more questions?

The purpose of this information is to provide insight into the allocations of the school budget and annual, public district audits. If anyone has questions regarding the auditing process or district financials, Central Office personnel can be reached during regular business hours at or (573) 581-3773.