Victoria ISD board accepts 2023–24 annual financial report; auditors give unmodified opinion

Victoria Independent School District trustees on Jan. 16 approved the district's annual comprehensive financial report for the fiscal year ended Aug. 31, 2024, following a presentation by the district's auditors. The board vote to accept the report was 7'for, 0'against.

Auditor John Manning, CPA and partner with Pattillo, Brown & Hill, told trustees the firm rendered an unmodified opinion on the district's financial statements, a designation he described in plain terms: "An unmodified opinion...is an A." Manning said the opinion meant the auditors did not identify material departures or reportable internal-control deficiencies that required modification of the audit opinion.

The audit report summarized the district's financial position at Aug. 31, 2024. Manning told trustees the district held about $67,000,000 in cash across funds and reported an unassigned general-fund balance of roughly $35,000,000. Federal revenues totaled about $40,000,000 for the year, and local revenues (which include property taxes plus fees such as activity receipts and food sales) were presented as approximately $68,000,000. Manning noted the auditors obtained independent confirmations of cash and county-collected property-tax receivables as part of their procedures.

Why it matters: an unmodified audit opinion is the highest standard auditors can give on governmental financial statements and is often used by bond raters, lenders and oversight bodies to assess fiscal stewardship. Trustees and staff discussed how the unassigned balance relates to budgeting decisions, including payroll and the district's reserves. The board's business officer and the auditors said the district's reserves place it in a stable position to absorb potential changes in state funding.

Trustee Margaret Pruitt moved to approve the annual comprehensive financial report as presented by administration; Micah Patton seconded the motion. After no further discussion, the board voted 7'to'0 to accept the report. The board instructed staff to sign and post the report; a signature page will accompany the published statements.

Context and next steps: the auditors recommended reviewing the management discussion and analysis (MD&A) and continued monitoring of federal grant compliance and reporting. Manning emphasized the degree of testing required for federal grants and payroll and thanked the district's business office for timely responses during the audit.

The approved report will be uploaded to the district website and printed in the local newspaper as required by policy.