Midland Public Schools audit returns unmodified opinion; board accepts draft report

Midland Public Schools received an unmodified (clean) audit opinion for fiscal year 2025, the districtauditor told the Board of Education, and the board voted to accept the draft report on Sept. 8 while one federal compliance supplement remains pending. "I'm happy to announce that Midland Public Schools has received an unmodified or clean audit opinion for fiscal year 2025," Allie Barnes, auditor, said during a presentation to the board. The unmodified opinion covers the district's financial statements and the separate federal single-audit review, for which Barnes also reported no federal award-related findings. "When it comes to your federal awards, we also have issued an unmodified opinion, and we have no federal award related findings either," she said. The audit presentation summarized the district's fiscal position: the general fund ended the year with about $33.6 million in cash and roughly $51.3 million in total general fund balance, a year-over-year decrease tied primarily to lower ESSER federal grant revenue. Barnes said the district ended the year with total revenues just under $110 million and total expenditures around $111.6 million, producing a roughly $1.8 million reduction in fund balance for 2025. The auditor noted the districthad no financial-statement findings, material weaknesses, or significant deficiencies and that internal-control procedures and segregation of duties were operating effectively. She also said the district should expect a final document only after the U.S. government issues its federal compliance supplement; the auditor described the current report as draft until that supplement is issued but said she did not anticipate any change to the opinion. Board members asked about cash-flow and contingency planning if state aid were delayed; Barnes said districts often look to short-term financing such as state-aid anticipation notes if cash projections show shortfalls. Board President Rausch asked for a motion to accept the draft audit; Secretary Ringgold moved and Treasurer Lauterbach supported. The board approved the motion by voice vote. The board's acceptance acknowledged the outstanding federal compliance supplement and left open further action only if the final federal guidance requires additional procedures.