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Auditor issues clean opinion on Grand Rapids 2024–25 financials; board accepts audit
Summary
Independent auditors gave the district an unmodified (clean) opinion for fiscal 2025, reported one repeat internal-control finding (segregation of duties), and said federal single-audit work on special education showed no compliance findings; the board accepted the draft audit.
The Grand Rapids Public School District Board of Education accepted the 2024–25 audit report after a presentation from audit partner Jackie Knowles of Bergen KDB, who said the firm would issue an unmodified (clean) opinion on the district’s financial statements for the year ended June 30, 2025.
“We are providing an unmodified or a clean opinion on the district's financial statements, meaning that the financial statements are presented fairly in all material respects,” Jackie Knowles said during the meeting.
Why it matters: a clean audit means the auditors found no material misstatements in the financial statements. The audit team reported one repeat internal-control finding related to segregation of duties: the business manager has general ledger access and performs some year-end reconciliation duties. The auditors also completed required single-audit testing under federal uniform guidance for the federal special education cluster and reported an unmodified compliance opinion for that program. Minnesota legal compliance testing disclosed no findings.
Key financial figures presented: auditors and district staff said total general fund revenue fell about 1% from 2024 to 2025, largely because federal revenues declined by about $3.2 million with the end of ESSER stabilization funding. State revenues rose about $1.6 million, driven by increased state special education entitlements and several new state grants. The district reported an approximate $2.1 million increase in fund balance for 2025; however, the unassigned portion of fund balance decreased roughly $224,000 to about 9.2% of expenditures — slightly below the district policy target of 10–15%.
Other highlights: expenditures increased about $3.9 million (roughly 6.5%), driven by cost-of-living adjustments and about $2 million paid from the general fund for retiree health costs. The health insurance internal service fund’s net position rose to about $4.58 million (approximately 32.4% of expenses), approaching the district’s 35% goal.
Federal compliance supplement timing: Knowles told the board the audit reports in the board packet remain in draft because the federal compliance supplement — a document auditors use for single-audit testing — had not been released for 2025. The firm said it may need to complete additional testing when the supplement is released; if so, final copies will follow. The Minnesota Department of Education’s deadline for districts’ financial statements remains December 31, and the auditor said the firm would issue separate documents if necessary to meet both federal and state timing requirements.
Board action: Board member Dave Cohen moved to accept the audit report; the motion carried by voice vote.
Board comments: Several board members and administrators commended district business staff for managing complex funding sources. One board member said the clean opinion reinforced confidence in district financial controls and thanked Cara for leading business services.
