In a recent meeting, the Board of Education received a comprehensive audit report for the P-12 School District, presented by independent auditors from Plant Moran. The audit, which covers the fiscal year ending June 30, 2024, was submitted to the state on November 1 and revealed a clean opinion on the district's financial statements, indicating strong financial health.

The audit highlighted that the district's total assets amounted to approximately $93 million, primarily consisting of $29 million in cash and $55 million in receivables, with a significant portion due from the State of Michigan. On the liabilities side, total liabilities were reported at around $60 million, mainly due to payroll-related obligations.

The district's fund balance, which serves as a financial reserve, decreased by 8.6% from the previous year, totaling about $32 million. This decline is notable as it reflects a reduction in the district's financial cushion, which is essential for managing unexpected expenses and revenue fluctuations.

Revenue for the year was stable, with a slight increase of 1%, totaling approximately $269 million. State funding constituted the largest portion at $211 million, accounting for 78% of total revenue. Expenditures remained consistent with the previous year at about $266 million, with instructional costs making up the majority of spending.

The report also emphasized the importance of maintaining an adequate fund balance, which currently stands at 12.3% of expenditures, significantly below the state average of 21.8%. This disparity raises concerns about the district's financial resilience and its ability to navigate future fiscal challenges.

Overall, the audit results underscore the need for the district to strategically manage its finances to ensure stability and sustainability in the coming years.