PHARR‑SAN JUAN‑ALAMO ISD — External auditors issued an unmodified audit opinion for the fiscal year ended Aug. 31, 2024, but also reported a significant deficiency related to expenditures exceeding appropriations, the district's auditor told the school board on Jan. 27.

The audit matters matter because an unmodified opinion indicates the district's financial statements "present fairly, in all material respects," its financial position, while the deficiency points to weaknesses in budget monitoring that the auditors recommended the district address with more timely budget amendments.

Jonathan Hall, audit partner with Carr, Riggs & Ingram, told the board the district’s governmental fund statements show a general‑fund balance of $110,070,000 at Aug. 31, 2024. For the year the general fund reported approximately $413.2 million in revenues and $421.9 million in expenditures; net results were aided by other financing sources tied to an insurance recovery and settlement. Hall said those items — and the timing of budget amendments when new expenditures are expected — led to the single significant deficiency the auditors reported.

The audit also included the required federal‑awards compliance work on major programs (the firm reported an unmodified opinion on the federal awards tested). Hall noted the district’s pension and post‑employment accounting items and the required disclosures in management’s discussion and analysis.

On the same night the board voted to approve the audit report. Trustees also approved a standard annual resolution to delegate authority to the superintendent and the assistant superintendent for finance to commit fund balance for specific needs (for example, to document available funding for federal program matching). The board approved the resolution by voice vote.

Separately, the board approved renewing the district’s investment advisory agreement with The METER Group (listed in board materials) for an annual advisory fee of $35,000. The district’s finance staff and the adviser reported the district’s portfolio at about $82 million at the end of the quarter covered in the presentation; about 44% was in local government investment pools, with the portfolio’s weighted average maturity intentionally short. The adviser advised gradually extending maturities on excess cash now that the Federal Reserve had begun cutting short‑term policy rates.

Assistant Superintendent for Finance Becky Gonzales told trustees the district will continue to monitor cash needs and move longer‑term funds into term products as appropriate. The board approved the advisory contract and the fund‑balance resolution in separate votes; auditors’ recommended corrective actions for the budget‑monitoring deficiency will be implemented by management and tracked by the finance office.

Ending: The board accepted the FY2024 audit and took steps the same night to maintain oversight of investments and fund commitments; auditors recommended earlier budget amendments when additional expenditures are anticipated, a practice the district said it will strengthen going forward.