The ISD 191 Board received the independent auditor’s report for fiscal year 2025 on Oct. 23, and the external auditors delivered a clean assessment of the district’s financial statements while flagging revenue volatility related to one-time federal funds.

Nancy Sheltonberg, CPA, presenting on behalf of Bergen KTV, told the board: “We’re issuing an unmodified opinion on the financial statements,” describing that as the cleanest audit outcome. She said the audit work found no internal-control findings and no noncompliance in the areas required by government-auditing standards and Minnesota statute.

Sheltonberg said the district’s revenue picture reflected the expected drop in ‘‘other’’ revenues after ESSER and other COVID-related federal funds wound down; she told the board that the largest year-over-year decline in 2025 was roughly $8.3 million in the federal/other category. At the same time, she said state sources (the general education formula allowance) increased modestly and local property tax levies rose slightly.

Tyler Denny, the district’s director of finance, joined auditors to review budget-to-actual performance. Denny said expenditures were under budget and that the general fund’s unassigned fund balance increased, in part because some budgeted positions remained open or were filled later in the year and because restricted funds were spent first. Sheltonberg noted the district’s unassigned fund balance rose to approximately $41.7 million, about 26.2% of expenditures at year end (figures presented by auditors).

Auditors also reviewed special revenue funds: food service saw both revenue and expenditure increases (noting higher food costs and equipment purchases), and the community service fund showed revenues exceeding expenditures consistently, with proper segregation of required accounts. Sheltonberg described upcoming audit work tied to federal uniform guidance (OMB compliance supplement) and new GASB standards and said the firm will finalize federal compliance reporting once the 2025 OMB supplement is released.

Board members asked about scoping and audit risk. Sheltonberg summarized her team’s approach (risk assessment, internal-control review, standard rotations of unpredictable tests) and said the small variance in total expenditures compared favorably to peer audits. Director Mickelson and others praised the finance team’s work on producing reliable budget-to-actual results.

No board action was required on the audit itself; the board accepted the report and auditors said they found no written findings for the year.