RHR Smith Company Issues 2024 Audit Report Highlighting $1.9M Surplus for District

The MSAD 52 Board of Directors convened on July 21, 2025, to discuss key financial matters, including the annual audit report presented by RHR Smith and Company. The meeting began with technical difficulties regarding audio and visual connections, which were resolved shortly after the start.

The auditors, Sam Oganoff and another representative, provided an overview of the audit findings. They reported that the district received an unmodified opinion, the highest rating possible, indicating no major disagreements or concerns with management. The auditors highlighted several areas for improvement, including cash handling processes and general ledger reconciliations, noting that some recommendations from the previous year had not been fully implemented due to staff turnover.

The financial statements revealed that total assets for the district amounted to $34.8 million, with a notable increase in cash reserves to $9.9 million. Liabilities decreased to $13.7 million, while the net position rose by approximately $121,000, bringing the total net position to $21.2 million. The unrestricted portion of this net position was reported at $2.39 million.

The auditors detailed the revenue and expenditure trends, noting that total revenues increased by 10% to $42.6 million, primarily due to program payments. However, expenditures also rose by $2.7 million, largely attributed to special education costs. The district reported a surplus of $1.9 million for the fiscal year, which provides financial flexibility for future budgets.

Discussion among board members included inquiries about the typicality of the surplus and expenditure trends. The auditors indicated that the surplus was not uncommon, as many districts are currently experiencing similar financial situations due to the winding down of federal funding.

The meeting concluded with an invitation for further questions, emphasizing the importance of the audit findings and the financial health of the district moving forward. The board plans to address the recommendations made by the auditors in future meetings to ensure continued fiscal responsibility.