Auditor gives Addison SD 4 a clean opinion, flags lower education and transportation balances and enrollment decline

Don Shaw, an auditor with Lauderbach and Amon, presented Addison School District 4’s fiscal year 2024 financial report to the board on March 19, 2025, delivering a “clean, unmodified opinion” on the district’s financial statements.

The audit showed mixed results across funds: the district’s combined general fund had an operating increase of about $4.3 million, but the education fund alone decreased by $1.8 million in the year covered by the audit. The transportation fund dropped by about $855,000 and was left with an ending fund balance Shaw described as “a hundred and $30,000 which I would consider pretty low for a district your size.”

The audit package included the management discussion and analysis, budget-to-actual schedules, long-term debt and capital asset schedules, and notes explaining significant balances and adjustments. Shaw also pointed trustees to the budgetary information that begins on page 65 of the annual financial report for fund-by-fund performance against budget.

Board members and staff connected the fiscal results to enrollment declines. Doctor Ivanelli told trustees that “from 2018 we’ve lost approximately 500 students,” and that longer trends — roughly 1,000 fewer students compared with about five years earlier, he said — lower enrollment drives down revenue while fixed costs such as salary growth remain. Ivanelli urged trustees to review per‑pupil trends rather than absolute dollar totals to put the numbers in context.

Trustees asked about internal controls and information technology. Shaw said he had identified areas for the district to review regarding IT controls and offered to provide the detailed findings to district business staff (Melissa) after the meeting. Shaw noted that some judgmental items, such as actuarial figures for retirement liabilities, come from third‑party actuaries and are reconciled in the notes and schedules.

Why it matters: the audit provides the board a formal, independent snapshot of the district’s finances as the board prepares the budget for 2025–26. The combination of enrollment loss and rising operational costs — particularly transportation — was highlighted repeatedly as a pressure point.

Shaw said the district’s annual financial report and auditor’s opinion will be posted on the district’s website. The board reviewed the document during the meeting and the audit was placed on the consent/approval portion of the agenda later in the session.