Clinton — Clinton City Schools’ external auditor presented draft fiscal year 2024–25 financial statements to the board Tuesday, issuing a clean opinion while noting changes in accounting rules and pressure on the district’s child‑nutrition cash reserves.

Adam, the district’s auditor, told the board he would issue a “clean, unmodified opinion” on the statements once pending federal compliance supplements are finalized. He said the figures themselves are complete but that the federal auditing guidance for major programs remains in draft and the audit’s issuance date will be set when that guidance is finalized.

Why it matters: The audit is the independent record of the district’s finances. The auditor said the district entered the new fiscal year with notable reserves — an important consideration for capital planning, including the elementary‑school project discussed the same night — while the child‑nutrition fund is drawing on cash after recent changes to staffing and food costs.

Financial highlights presented
- General fund: total fund balance reported at about $4,415,000, a decrease of roughly $253,000 from the prior year. The auditor described the general‑fund balance as the “major number we look at in terms of the health of the district.”
- Total governmental funds: combined fund balance approximately $6,670,000.
- Child‑nutrition enterprise fund: cash and cash equivalents of about $2,100,000, a year‑over‑year decrease near $196,000. The auditor said the shift from contracted services toward hiring regular staff and rising food costs (and the end of certain pandemic‑era federal supplements) are principal drivers of the cash use.

New accounting change noted
The auditor explained a new Governmental Accounting Standards Board change (GASB 101) that requires a valuation of accrued sick‑leave liabilities; the rule affects net position reporting but does not change the underlying cash on hand. The auditor said the new standard increases reported liabilities in net‑position schedules and will be disclosed in the final audit letter.

Child‑nutrition specifics and operational context
Child‑nutrition revenues reported include federal reimbursements of about $2.4 million (declining year‑to‑year) and food‑sales receipts of roughly $112,000; the auditor said smaller districts commonly face pressure on meal‑program cash when participation and reimbursement do not keep pace with higher wages and food costs. School food staff described use of USDA commodity programs, cooperative bids and changes to distribution logistics as mitigation steps.

Compliance and control results
The auditors reported no material weaknesses or significant internal control deficiencies and no compliance findings for tested federal and state programs. The auditor described the financial statements as accurate and complete in the draft presentation and said the only likely change before issuance will be the audit date once federal supplements are finalized.

What’s next: The auditor will finalize the report after the federal compliance supplements are issued. District leaders said the audit position gives them flexibility in capital planning and reiterated that food‑service program adjustments will be part of operational planning for the coming fiscal year.