David Leach, HFSC chief financial officer, presented the audited financial statements for the 12 months ending June 30, 2025, and summarized key budgetary trends for the board.

Leach said the standard (financial statement) portion of the audit is complete and presents fairly in all material respects; the government‑grant portion of the audit remains pending because the relevant government auditing rules have not yet been issued and auditors must await those rules before issuing the final grant‑related report.

He highlighted that about 66% of operational spending goes to personnel. Leach explained HFSC capital policy (items over $5,000 and multi-year life are capitalized) and said HFSC is using leases to acquire mass spectrometers rather than paying outright. Year‑over‑year total revenue was roughly flat as some federal/ARPA and DOJ grant dollars ended while City of Houston support increased. Leach noted the City of Houston provided an additional $2.5 million in the 2025 budget earmarked for biology work; HFSC intends to use that funding to reduce outsourcing and move work to salaried staff as hiring proceeds.

Payroll rose about 13% year over year, and outsourcing remains a significant services expense that may decline as more staff are hired. Leach told board members line‑item detail is available in the audit report and on HFSC’s website. No board vote was required for the audit presentation; questions from board members were limited to clarifying remarks and thanks for the presentation.