Auditors from Whitley Penn presented the district’s fiscal-year 2024–25 annual financial statement audit Nov. 11 and issued an unmodified opinion with no findings. Patrick Simmons, audit partner, told trustees the audit complied with generally accepted auditing standards and government auditing standards and noted no material misstatements.

Simmons highlighted several fiscal metrics: instruction and related services comprised about 60% of expenditures (a healthy level), general administration remained near 3%, and the district reported revenues of roughly $221,000,222 versus expenditures of about $208.6 million for the fiscal year. The net change in the fund balance was an increase of approximately $10.9 million, producing an ending fund balance near $86.3 million. He also said a new accounting standard for compensated absences added roughly $16 million in liability related to leave accruals.

Simmons explained the federal single-audit report was not yet issuable because the Office of Management and Budget had not released the 2025 compliance supplement; once available, the district will complete the single-audit procedures and return the report for board approval.

Trustees asked clarifying questions about the 60% instructional percentage and administrative costs; Simmons confirmed Pearland ISD’s ratios compare favorably with peers. The board voted to accept the audit and accompanying communications.

Action: The board approved the annual financial statement audit (motion carried 6–0, one trustee absent). The district will complete and approve the federal single-audit report once OMB releases the compliance supplement.