PRIEST RIVER — Slowly, but surely, the West Bonner County School District is chipping away at completing overdue state financial reports and audits.

The district announced this week that the 2023 and 2024 fiscal year audits were completed and submitted to the Idaho Department of Education.

"While significant work remains — including completing the FY2025 audit and bringing subsequent financial reporting current — the completion of these audits represents an important step forward for the district," West Bonner Superintendent Kim Spacek said in a press release.

The news follows ongoing issues faced by the district in completing its audits, with the 2023 audit almost two years overdue and the 2024 audit almost a year overdue.

"The district continues to work with its financial professionals and state partners to address outstanding requirements and complete the remaining audits and financial reporting obligations," Spacek said.

The delays in reporting and completing the required audits prompted the Idaho Department of Education to withhold funding and warn West Bonner that additional funds could be withheld if the issue was not resolved. In addition, failure to submit the FY2023 and FY2024 audits made the district ineligible for FY2026 grants until the overdue audits were submitted.

"The district recognizes that completing the audits does not, by itself, resolve all of the financial management and internal-control issues identified through the audit process," Spacek said.

However, with the two audits completed, West Bonner officials said the district also remains on track with required monthly financial reporting, including treasurer’s reports that provide information regarding revenues, expenditures and budget-to-actual activity.

However, West Bonner officials said that regular financial reporting is just one piece of the overall management system they are working to implement. The audit findings demonstrate that additional improvements are necessary in internal controls, financial reporting and governmental accounting, Spacek said.

"The district will continue working to address these findings and improve the systems and processes necessary to provide accurate, timely and transparent financial information to the board of trustees, staff, families and community," he said.

The FY2024 audit identified one material weakness and three significant deficiencies in internal controls. In addition, the audit noted previously identified issues, demonstrating that additional work is needed to ensure that financial reporting processes, internal controls and governmental accounting practices are consistently and accurately implemented, district officials said.

"The district is committed to using these findings as a roadmap for continued improvement," Spacek said. "District leadership and financial staff are working to strengthen financial procedures, improve reporting processes, address audit findings and build the capacity necessary to meet ongoing state and federal financial reporting requirements."

Among the district's immediate priorities are the completion of the FY2025 audit and remaining state reporting requirements, elimination of its audit and financial reporting backlog and addressing internal control deficiencies identified in the FY2024 audit.

Other priorities include providing accurate and timely financial information, keeping the community and board up to date on the district's financial condition and maintaining open communication regarding the district's ongoing financial needs.

Continued community support remains key as the district continues to move forward, Spacek said.

Voters approved a two-year, $4.7 million supplemental levy in May 2025. The levy provides approximately 20% of the district’s general fund revenue and is an important component of West Bonner's ability to maintain educational programs and operations.

While pleased by the district's progress in completing the audits and the hard work it represents, West Bonner officials said significant work remains to address financial reporting obligations and internal control concerns.

"The district will continue to approach this work with a commitment to transparency and accountability," Spacek said. "Completing FY2023 and FY2024 is an important step, but the work continues. The district’s focus now is on completing FY2025, moving into FY2026 reporting, strengthening its financial systems and maintaining the trust of the students, families, staff and community it serves."