NEISD auditors issue draft unmodified opinion; single-audit delayed by federal guidance

External auditors told the Northeast Independent School District board they issued a draft unmodified opinion on the district's 2025 annual comprehensive financial report but could not finalize the single-audit federal section until the Office of Management and Budget and TEA publish a final compliance supplement.

Janet Pittman, partner for the audit firm, summarized the report and told the trustees: "We issued an unmodified opinion." Pittman said auditors found no reportable deficiencies in internal control over financial reporting and had no disagreements with management.

The presentation reviewed key financial figures: approximately $583 million net position on operations excluding pension/OPEB, with pension and OPEB (GASB 68 and 75) reducing the full‑accrual net position by about $400 million to roughly $137 million. Pittman also said the district had about $81 million in federal expenditures, triggering single-audit requirements; the auditors tested Title I as the major program this year.

Trustees asked whether the federal delay might change the opinion; auditors said TEA extended the due date (from Nov. 27 to Feb. 27) and they do not anticipate substantive changes. The board received the presentation for information; staff said the completed single-audit will be returned to the board or placed on consent once final.

The board also recognized internal financial staff for their work in preparing the report.