Independent audit: district posts unmodified opinion, net position up about $18 million

Wipfli LLP on Feb. 10 presented DeKalb CUSD 428’s FY2023–24 independent audit and annual comprehensive financial report. Scott Denzler, governmental audit partner, told the board that auditors issued an unmodified (clean) opinion on the district’s basic financial statements.

Key findings from the audit presentation - Unmodified opinion: Denzler said the firm issued an unqualified opinion, meaning the audited basic financial statements are “fairly stated in all material respects.” - Net position: The government‑wide statements show a year‑end net position of about $55,000,000, an increase of about $18,000,000 from the prior year. - Operating funds: Excluding capital‑project proceeds (debt certificates), the district reported an operating‑fund surplus of roughly $18,000,000 for the year ended June 30, 2024. - Fund balance: Operating fund balance stood at approximately 56% of annual operating expenditures at year end — characterized in the presentation as a strong starting position for the fiscal year.

Pension and funding context Denzler highlighted that while IMRF (non‑certified employee plan) is well funded (90–100% range), the TRS pension (certified staff) has long‑term funding challenges. He cited a $3.9 million liability attributable to the district and noted the state’s share for District 428 certified staff was about $339 million; he referenced statewide liabilities in the tens of billions.

Federal one‑time funding and operating pressures Auditors noted that ESSER and other one‑time pandemic federal funding have been fully spent and will not recur; that trend and broader inflationary pressure are items the board and administration should monitor for future budgeting.

Audit process and recognition Denzler recommended that readers start with the Management Discussion & Analysis and noted the district’s annual comprehensive financial report (ACFR) had received awards for excellence in financial reporting. He reiterated that the auditor’s role includes gaining an understanding of internal controls but not issuing a separate opinion on control effectiveness.

Next steps The audit materials were provided to board members; the administration will post the ACFR and file required regulatory reports. Denzler and the audit team thanked district staff for timely cooperation in producing the report.