External audit: Fairport CSD receives unqualified opinion, no material weaknesses

The Fairport Central School District received an unqualified opinion on its basic financial statements for the fiscal year ending June 30, 2025, and the auditor reported no material weaknesses or significant deficiencies, the district’s external auditor told the Board of Education on Oct. 20.

Tom Zuber, the district’s external auditor, presented the audit results and said the opinion reflects the results of a multi‑year budget process and the district’s reserve-management practices. "I am pleased to report we did issue an unqualified opinion, no material weaknesses or significant deficiencies," Zuber said. He noted the district continues to face challenges including state-aid uncertainty, inflation and employee-benefit pressures, but said the district has developed capital and other reserves that support fiscal stability.

Zuber told the board the district is appropriating reserves and fund balance to support the 2025–26 budget; he said about $10.6 million in reserves/fund balance was included to support that budget, roughly $2 million more than the prior year. "You have to generate budgetary surpluses equal to that number just to break even," he said, advising prudence in future budgeting.

The board subsequently voted to accept the basic financial statements for the year ended June 30, 2025, and to accept the auditor’s communication on internal controls. Both items were approved unanimously.

Why it matters: An unqualified opinion is the standard auditors seek and indicates the financial statements fairly present the district’s financial position under generally accepted accounting principles. The lack of material weaknesses or significant deficiencies suggests the district’s internal controls are functioning effectively, though the auditor flagged a few minor procedural items and recommended continued monitoring of reserves and budget planning.

Details: Zuber noted the district’s school-lunch program should see improved participation and financial results in the current year because all students are receiving free meals, which typically increases participation. He also noted the district has several reserves (employee-retirement contribution reserves, capital reserves) that help smooth tax impacts for capital work and recommended continued attention to long-term fiscal planning.

Next steps: District staff said they will continue monitoring fund balances and reserves and will report back to the board as part of budget development. The board accepted the audit and the communicating internal-control matters letter at the meeting by unanimous vote.