Auditors give Hoover schools a clean FY2024 opinion; district outlines multi-year capital plan

External auditors Carr, Riggs & Ingram presented an unmodified (clean) opinion on the Hoover City Schools fiscal year 2024 financial statements and reported clean single-audit results for federal programs reviewed.

Andrew Waits and Grant Shepherd told the board that the FY2024 audit included an "unmodified opinion," and highlighted significant year-over-year changes: capital grants and contributions rose to just over $19 million, an increase of roughly 344 percent from the prior year, driven in part by a state grant for a new building. Capital outlay expenditures were about $33 million in FY2024 compared with roughly $7 million the prior year. The general fund's change in fund balance for the year was reported as nearly $17 million in a positive direction.

The auditors also reported clean single-audit opinions for federal programs tested, including special education and child nutrition programs that exceeded the federal single-audit threshold.

Following the audit presentation, Chief School Financial Officer Michelle McCabe presented a revised FY2025 capital plan that reduces projected capital projects by just over $2 million based on updated projected fund balances. The multi-year plan assumes a 2 percent annual pay raise in projections and prioritizes completion of deferred replacement projects including roofing and mechanical systems, and ongoing investments in technology and maintenance.

Projected reserve levels in the plan: FY2026 ending reserves of 9.13 months, FY2027 8.78 months, FY2028 8.23 months, FY2030 7.72 months, and a projected reserve of about six months in FY2033. The presentation noted a plan to add $6,274,071 to reserves in FY2026 and outlined a phased approach to construction and maintenance projects, with some projects funded from reserves.

Melinda Buck, the board's newly appointed CSFO (beginning July 1), later presented a local tax receipt analysis showing continued year-over-year growth in property and auto tax receipts. The report showed property and auto tax receipts performing at 98 percent of budget, totaling $100,308,832.32; total local tax receipts for fiscal-year-to-date were reported at $101,278,753.77.

Board members asked no substantive questions after the audit presentation; auditors and staff said they were available for follow-up. The clean opinion and the capital-plan presentation together give the board and the public a detailed picture of the district's recent capital spending and projected reserves going forward.