Auditor issues clean opinion; board approves FY25 audit and communications letter 7–0

The board heard a presentation from Ryan Engelstedt, partner at Burke and KTV, summarizing the audit for the fiscal year ended June 30, 2025. Engelstedt told the board the firm would issue an unmodified (clean) opinion on the district—s financial statements and described the scope of work, including internal control review and federal single-audit testing for the child nutrition and special education clusters.

Engelstedt said auditors report one recurring internal-control finding related to separation of duties, which the auditor characterized as a significant deficiency (not a material weakness) for an organization of the district's size; the report noted compensating controls such as supervisory reviews and board oversight. He also said federal single-audit procedures were substantially complete but that the federal compliance supplement had not yet been released, delaying final single-audit reporting until that supplement is issued. Minnesota legal compliance testing produced no findings.

On financial trends, the auditor reviewed enrollment declines that reduced resident average daily membership and described how open-enrollment gains moderated the drop in weighted pupil units. Engelstedt highlighted that the district ended FY25 with a stronger general-fund position than the prior years, with a larger-than-budgeted increase in fund balance driven primarily by lower-than-expected spending and timing of planned long-term facilities projects.

After brief Q&A (board members asked about the community service fund and the commonality of small deficits in that fund), the board moved to approve the audit report and communications letter; the motion passed by voice vote, with the record showing 7–0 in favor.