External audit finds 'unmodified' opinion; district staff briefed on GASB-101 impact and fund balance timing

Nathan White, audit partner at Singleton Clark & Company, told the Temple ISD Board of Trustees on Nov. 10 that the auditors issued an "unmodified" opinion on the district's financial statements and found no material weaknesses or federal-award findings for the child nutrition cluster. "We believe the district's financial statements are materially free from misstatement," White said during his briefing.

The audit was presented as an informational report only; board members were asked to delay formal acceptance because the federal compliance supplement that governs single-audit procedures remains in draft. White said the supplement’s delay — tied to pending federal actions — prevents issuance of the district’s single audit at this time.

District staff walked the board through the report’s key figures and the accounting effect of recently adopted standards. White and staff explained that GASB-101 required the district to recognize accumulated state days within compensated-absence liabilities. As a result, the district’s long-term compensated-absence liability was reported at roughly $8.6 million as of July 1, 2024 and increased modestly through FY25 to about $8.8 million.

On liquidity, the auditors showed a $1,035,754 addition to the general fund balance, yielding an ending fund balance of $46,929,825. District staff cautioned that timing and outstanding project obligations affect how much of that balance is available: roughly $1.5 million of Wildcat Stadium project costs remained outstanding at June 30, of which about $1.2 million had been spent as of the report date, and those obligations were expected to reduce available fund balance when paid.

Board members asked clarifying questions about the timing and about how the numbers will affect the 2025–26 operating budget. District finance staff said the audit would be returned for formal acceptance when the federal compliance supplement and single-audit issuance are complete.

What’s next: the board received the presentation and did not approve the audit tonight; staff expects to return with the formal acceptance request after single-audit completion.