Compliance Examination Report of Jennings County School Corporation for July 1, 2023 to June 30, 2025

Vault Summary

The Indiana State Board of Accounts conducted a compliance examination of Jennings County School Corporation covering July 1, 2023 to June 30, 2025. The examination, performed by private examiners Crowe LLP, revealed material noncompliance in three areas related to capital asset inventory, leases and debt schedules, and capital asset reporting. Adjustments were made to correct reporting errors. The findings require attention to improve compliance with Indiana accounting and reporting standards.

Key Facts

• The examination period was July 1, 2023 to June 30, 2025.
• Findings include incomplete physical inventory of capital assets, unreported equipment and vehicle leases in the Annual Financial Report (AFR), and a significant variance between capital asset schedules and AFR reported balances.
• Annual Financial Report adjustments increased reported annual lease payments by $478,632.
• An overstatement variance of $128,654,284 was corrected in the capital asset schedule reported in the AFR.
• The examination was conducted by Crowe LLP under Indiana State Board of Accounts guidelines.

Money Amounts

• $478,632 increase to reported annual lease payments due to unreported leases
• $128,654,284 variance representing overstatement in capital asset schedule

Watch Items

• Implementation of documented procedures for biennial physical inventory of capital assets to ensure completeness and accuracy
• Accurate and complete reporting of leases and debt schedules in the Annual Financial Report
• Reconciliation of capital asset schedules to Annual Financial Report balances to prevent material discrepancies

Documents to Request Next

• Previous compliance examination reports of Jennings County School Corporation
• Annual Financial Reports for fiscal years prior to 2024
• Policies and procedures on capital asset management for Jennings County School Corporation
• Detailed records of equipment and vehicle leases for Jennings County School Corporation during the audit period

Possible Public-Safe Article Angle

A recent compliance audit of Jennings County School Corporation identified reporting discrepancies including unreported leases and inaccuracies in capital asset records. The audit highlights the importance of accurate financial reporting and asset management for public school accountability. Adjustments were made to ensure compliance, and officials have been advised to improve procedures to avoid future errors.

Draft Notes

The Indiana State Board of Accounts completed a compliance audit of Jennings County School Corporation for fiscal years 2024 and 2025. The audit found that the school corporation did not conduct a complete physical inventory of capital assets every two years as required, resulting in incomplete asset records. Additionally, three equipment and vehicle leases were initially omitted from the Annual Financial Report, requiring adjustments that increased reported lease payments by nearly $479,000. The capital asset schedule submitted also overstated asset values by more than $128 million before corrections. These findings underscore the need for improved financial reporting and asset management procedures to ensure transparency and proper oversight of public school finances. The audit report is publicly available and was discussed with school officials in March 2026.