PRIEST RIVER — The long-awaited fiscal year 2023 audit of the West Bonner County School District is heading to the board, with a special work session on the audit set for Wednesday.

The workshop will begin at 5 p.m. at Priest River Lamanna High School. The regular WBCSD board meeting will follow at 6 p.m.

The audit, conducted by the firm CliftonLarsonAllen LLP, will be discussed during the workshop and is scheduled as an action item at the trustee meeting immediately afterward.

West Bonner has faced ongoing issues with completing its annual audits on time. The 2023 audit is now 22 months overdue, and the 2024 audit is 10 months late.

As a result, the Idaho Department of Education has withheld $177,482 in funding from the district. Earlier this year, state officials warned WBCSD that additional funds could be withheld if the audits were not submitted in a timely manner.

Superintendent Kim Spacek met with CLA officials in mid-September to push for the completion of both audits. At that meeting, an Oct. 9 deadline was set for the 2023 audit.

At the Sept. 17 board meeting, trustees expressed frustration over the continued delays and their impact on the district. That frustration prompted Spacek’s meeting with CLA representatives.

While CLA was originally slated to conduct the 2024 audit, Spacek told the board that meeting the October deadline for the 2023 audit could determine whether the district continues with that plan. Currently, CLA and WBCSD officials have discussed completing the 2024 audit by February 2026.

However, Spacek said the district is also in talks to switch to Hayden Ross, a Moscow-based firm that conducts annual audits for the Lake Pend Oreille School District, for the 2025 audit.

Hayden Ross auditors have told WBCSD they want to review the 2024 audit before making a decision.

The Idaho Department of Education previously warned the district that its 2025 audit, due in November, is critical. If the district fails to submit the audit by Nov. 10 or by the extended deadline of Feb. 5, 2026, both of its state payments will be withheld.

However, the department may consider releasing the funds if WBCSD shows substantial progress on its overdue audits and its auditor provides a written commitment to a specific completion date, Barzee said in the letter. This would help the district meet its current financial obligations,

A second letter from the department revealed that WBCSD is also out of compliance with federal audit requirements. As of Sept. 12, the district’s federal grant reimbursements have been frozen. 

Additionally, WBCSD is ineligible for any fiscal year 2026 grants until the 2023 and 2024 audits are submitted, placing further financial strain on the district.