Auditor issues clean opinion for Pueblo School District 60; cash down as construction continues

Tom Sesterre, lead auditor with Halting and Company, told the Pueblo School District 60 Board of Education at its Feb. 11 special meeting that the district received an unmodified (clean) opinion on the financial statements for the year ended June 30, 2024.

Sesterren said the audit found the district’s overall financial condition “is good” and that there were no reportable internal‑control findings or federal‑grant compliance exceptions in the single‑audit areas reviewed.

The clean opinion matters because it confirms the district’s published financial statements can be relied on for budgeting, bond disclosures and state reporting. The auditor also flagged several large but explainable changes that affect the district’s near‑term fund balances and long‑term obligations.

Sesterre told the board that cash and investment balances fell by about $25 million during the year as capital construction projects continued. Other assets were down about $11.6 million because grant receivables declined as timing differences resolved. Capital assets increased roughly $23 million as projects were completed and capitalized, while long‑term liabilities rose about $52 million—driven primarily by a roughly $63 million increase in the district’s share of PERA (Public Employees’ Retirement Association) liabilities. Outstanding debt (bonds and leases) fell about $9.1 million in line with scheduled debt service, the auditor said.

On the governmental side, net position increased about $16 million, Sesterre said, attributing the change to the amortization of pension liabilities and growth in fund balances. He noted the general fund’s unassigned balance would cover about 92 days of expenditures at year‑end, compared with about 95 days the prior year.

Grant activity rose during the year, the auditor said, with roughly $13.7 million of COVID‑related grant revenue reflected in 2024; the auditor warned that such grant levels are often temporary and can reverse in later years. The building fund balance dropped by about $22 million as capital work advanced; the capital reserve fund increased about $5.8 million because revenues rose while some spending was deferred.

Sesterre described the audit field work timeline: on‑site control testing in July, targeted field work in October, and completion before the end of the calendar year—allowing timely state filings. He thanked district finance staff by name for preparation and timeliness.

Board members asked whether charter‑school audit timing affects the district’s audit. Sesterre said charter audits are component‑unit work and that late charter audits can delay the district’s submissions and, in past years, led to a disclaimer on the district’s pipeline submission. He said the chief practical consequence of a late filing can be earlier enforcement steps by the state, including potential withholding of property‑tax receipts.

The auditor said the district had no federal‑award compliance findings in the single‑audit areas his team reviewed, which included ESSER, Child Nutrition, special education grants and Title II (Quality Teachers). He closed the presentation by inviting board questions.

The board thanked the audit team and moved on to the next scheduled reports.