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Independent auditor gives RSU 40 a clean opinion; district fund balance remains above state guidance
Summary
Wipfli partner Christian Smith presented an unmodified (clean) opinion for the fiscal year ended June 30, 2024, reporting revenues above budget by about $66,000 and expenditures under budget by about $950,000; the district ended the year with roughly $4.1 million in fund balance, with unassigned funds near state guidance levels.
An independent audit firm told the RSU 40/MSAD 40 Board that the district’s 2024 financial statements received an unmodified (clean) opinion and the firm reported no internal control weaknesses that required board notification.
Christian Smith, a partner at Wipfli, said revenues for the year ended June 30, 2024, were about $66,000 higher than budget and expenditures about $950,000 below budget, producing an increase in fund balance. He reported the district ended the year with approximately $4,100,000 in fund balance, of which roughly $880,000 is assigned for specific purposes (including $600,000 budgeted for the 2024–25 year) and about $3,200,000 is unassigned.
Smith told the board that the State of Maine allows districts to carry an unassigned fund balance up to 9% of annual budget currently, that the district’s unassigned balance was about 8.82% at year end, and that the state’s carryover allowance is scheduled to drop to 5% for a future year (with pending legislation possibly restoring 9%). He cautioned that the district’s results for the fiscal year ending June 30, 2025, could change those percentages depending on budgeted use of fund balance.
Wipfli also performed the required single‑audit procedures for federal grant programs; the auditor said they tested about $1.5 million in federal funds (local entitlement and coronavirus relief funds) and reported no findings for compliance or reporting.
Board members thanked the auditor and district business staff. Business manager Karen (last name in packet) noted the approved FY‑26 budget and that the budget vote passed with about 59% support while turnout varied across towns; she gave the district’s registered-voter tally as 10,924 and noted 1,949 people voted on the $40 million budget.
The audit presentation did not include a board vote; the auditor’s communications were accepted and the board moved on to other agenda items. The district plans to work with the state if fund-balance levels require a multiyear plan to spend down balances in response to state guidance.
