Newburg schools received good news Tuesday night — a mostly positive report on last year’s financial audit.

“It was a clean audit opinion,” Auditor Ken Shultz, of Schultz, Durham & Rapp, P.C., said.

The report was an approval of the district’s financial health with Schultz citing a few positive signs.

For instance, the district’s operating fund balance expenditure ratio, is on the rebound after several years of continued decline.

Reaching up to more than 14 percent after decreasing to 5 percent in 2007, Schultz encouraged board members about the positive aspect of the increase.

“DESE (Department of Elementary and Secondary Education) considers a healthy school district to be at 17 percent ratio or higher, you’re not there but you are better than you were at five percent,” Schultz said.

Another positive sign is the district’s ending fund balance, which is up to $1.3 million, the best finish in eight years, according to Schultz.

There was, however, a significant deficiency reported in the audit that Schultz did not discuss during the meeting.

The audit report showed that an “adequate segregation of duties” is not present, because the district’s bookkeeper is responsible for all areas of the accounting cycle.

The report qualifies the deficiency by stating the budget constraints and size of the district limits “the application of adequate segregation of duties,” adding the deficiency is not a material weakness.