Independent auditors give Clark County School District a clean opinion, identify $109M understatement and $2.3M timing error
November 03, 2025 | CLARK COUNTY SCHOOL DISTRICT, School Districts, Nevada
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An independent audit of the Clark County School District for the year ending June 30, 2025, produced an unmodified (clean) opinion, the district’s chief financial officer said Thursday. Justin Dayhoff, CCSD chief financial officer, introduced partner Kurt Schlicher of Eide Bailly, who summarized the results and flagged two internal control matters that the district corrected in the financial statements.
Kurt Schlicher said auditors issued an "unmodified opinion," meaning the financial statements are materially accurate within reasonable assurance. He described an "emphasis of matter" noting the district changed its accounting policy for prepaid items this year.
The auditors reported two matters that they considered important to communicate beyond management. Finding 2025‑001 was classified as a material weakness after auditors identified that construction‑in‑progress balances were understated by about $109,000,000; management agreed and made an adjustment to the financial statements. Finding 2025‑002 was reported as a significant deficiency after auditors determined roughly $2,300,000 of payroll stipend payments tied to hard‑to‑fill positions were recorded in July 2025 rather than accrued to June 2025, affecting grant revenue recognition; the district recorded the accruals and revised controls.
Dayhoff told trustees the construction variance stemmed from an accounting system patch and a secondary ad‑hoc report that was not reconciled to SAP posting results. "We have added both the control and the compliance and reasonability check to make sure that that does not happen again," Dayhoff said.
Auditors also reviewed fund‑level metrics. On a government‑wide basis, the district ended the year with a net position of about $1.7 billion and reported a year‑over‑year increase in net position of approximately $253 million. The general fund’s ending fund balance was $498 million, with $147 million unassigned — roughly 4 percent of annual expenditures, auditors noted, describing it as a policy decision on desired flexibility.
Audit committee members and trustees questioned testing methods, grant timing and the district’s plan for monitoring corrective actions. Kurt Schlicher described ratio and sampling procedures that led to the $109 million variance discovery; Dayhoff outlined implemented changes including a 21‑day review of reimbursement requests and more frequent reconciliations. The district is also pursuing an enterprise resource planning RFP to modernize its accounting platform.
The Audit Advisory Committee moved to accept the auditor narrative and recommendations; the board then approved the committee’s recommendation. Trustee Anna Binder moved to approve the independent auditor’s narrative report of recommendations and district responses; the board voted 6–0 to accept the report.
The auditors noted the federal single‑audit procedures remain delayed because the Office of Management and Budget’s compliance supplement had not been released at the time of the presentation; auditors estimated the single audit will take an additional four to eight weeks after release and that the district will return to the board within 30 days of completion to present those results.
Next steps listed by staff include monitoring corrective action implementation, continuing enhanced close‑year procedures and returning to the board with single‑audit results when federal guidance is available.
Kurt Schlicher said auditors issued an "unmodified opinion," meaning the financial statements are materially accurate within reasonable assurance. He described an "emphasis of matter" noting the district changed its accounting policy for prepaid items this year.
The auditors reported two matters that they considered important to communicate beyond management. Finding 2025‑001 was classified as a material weakness after auditors identified that construction‑in‑progress balances were understated by about $109,000,000; management agreed and made an adjustment to the financial statements. Finding 2025‑002 was reported as a significant deficiency after auditors determined roughly $2,300,000 of payroll stipend payments tied to hard‑to‑fill positions were recorded in July 2025 rather than accrued to June 2025, affecting grant revenue recognition; the district recorded the accruals and revised controls.
Dayhoff told trustees the construction variance stemmed from an accounting system patch and a secondary ad‑hoc report that was not reconciled to SAP posting results. "We have added both the control and the compliance and reasonability check to make sure that that does not happen again," Dayhoff said.
Auditors also reviewed fund‑level metrics. On a government‑wide basis, the district ended the year with a net position of about $1.7 billion and reported a year‑over‑year increase in net position of approximately $253 million. The general fund’s ending fund balance was $498 million, with $147 million unassigned — roughly 4 percent of annual expenditures, auditors noted, describing it as a policy decision on desired flexibility.
Audit committee members and trustees questioned testing methods, grant timing and the district’s plan for monitoring corrective actions. Kurt Schlicher described ratio and sampling procedures that led to the $109 million variance discovery; Dayhoff outlined implemented changes including a 21‑day review of reimbursement requests and more frequent reconciliations. The district is also pursuing an enterprise resource planning RFP to modernize its accounting platform.
The Audit Advisory Committee moved to accept the auditor narrative and recommendations; the board then approved the committee’s recommendation. Trustee Anna Binder moved to approve the independent auditor’s narrative report of recommendations and district responses; the board voted 6–0 to accept the report.
The auditors noted the federal single‑audit procedures remain delayed because the Office of Management and Budget’s compliance supplement had not been released at the time of the presentation; auditors estimated the single audit will take an additional four to eight weeks after release and that the district will return to the board within 30 days of completion to present those results.
Next steps listed by staff include monitoring corrective action implementation, continuing enhanced close‑year procedures and returning to the board with single‑audit results when federal guidance is available.
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