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Auditors give Hoover City Schools a clean FY24 opinion; district outlines multi-year capital plan
Summary
External auditors presented an unmodified (clean) opinion on the district's FY2024 financial statements, highlighted large increases in capital grant activity and capital spending, and staff presented an updated FY25 multiyear capital plan projecting reserves through FY33.
External auditors presenting to the Hoover City Board of Education delivered an unmodified (clean) opinion on the fiscal year 2024 audit and highlighted several material year-over-year changes, while district staff outlined a multi-year capital plan that maintains healthy reserves through planned investments.
Representatives from Carr, Riggs & Ingram (Andrew Waits and Grant Schumpert) told the board the district received a clean audit opinion for FY2024. The auditors said an "agreed-upon procedures" review had also been performed at selected schools to test compliance with local policies governing cash disbursements, receipts and fundraising, and that the district's single-audit work (federal programs over the $750,000 threshold) produced clean results for special education and the child nutrition program.
Auditors reported a sharp increase in capital grants and contributions, noting capital grants rose from about $4.2 million in the prior year to just over $19 million in 2024; auditors attributed roughly $12 million of that increase to a state grant for construction of the building where the meeting was held. Property-tax revenue increased about 11.5% year over year to just over $106 million, auditors said. The district reported capital outlay expenditures of approximately $33 million in FY24 (up from about $7 million in the prior year) and a positive change in the general fund balance of nearly $17 million for the year.
Following the audit presentation, outgoing CSFO Michelle McKay presented the current FY25 capital plan (the version in the board packet originally approved May 14, 2024) with updates reflecting a $2 million reduction in projected capital projects and a multiyear forecast. Under the plan, the district expects to add $6,274,071 to reserves in FY26 and to end FY26 with 9.13 months of reserves. Projections in the packet extend to FY33 and show the district maintaining roughly six months of reserves even after planned investments, including a potential new elementary school in FY32-FY33 funded from reserves.
Board members thanked staff for the work on capital projects and acknowledged the volume of completed improvements over recent years. The board indicated it would vote on the capital plan in a subsequent meeting.
Auditors and staff invited questions and said they would provide follow-up documentation; no substantive audit exceptions were reported in the public presentation.
