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Montgomery ISD board accepts near‑final 2025 audit; finding corrected before issuance
Summary
The Montgomery ISD board received a near‑final financial audit and approved acceptance of the draft. Auditor Patillo, Brown & Hill said a federal guidance document must be finalized before issuing the signed opinion but that a clean opinion is expected; the board approved the near‑final draft and will sign the final certificate once released.
The Montgomery Independent School District Board of Trustees on Nov. 18 accepted a near‑final draft of the district’s fiscal year 2025 financial audit and instructed staff to return a finalized opinion once required federal guidance is issued.
Kent Willis, a partner at Patillo, Brown & Hill, told trustees the audit team is waiting on a federal document that provides guidance for portions of local government audits. "Until that thing is released... we can't issue the audit," Willis said, adding, "We fully expect to issue a clean opinion." He told the board that he did not anticipate changes to numbers or procedures once the federal guidance is finalized.
Willis reported that the firm found no exceptions in federal grant testing and said the single‑audit work produced no reportable issues. He identified one significant deficiency related to an out‑of‑period revenue recognition: roughly $1,225,000 in existing debt allotment funding was recorded in the wrong fiscal year. Willis said district finance staff discovered and corrected the error and implemented corrective controls. "As an auditor, I'd still have to report a finding even though it was corrected by your staff," Willis said, and he commended staff for timely transparency.
On the financial highlights, Willis said the district recorded about $102 million in general fund revenue and roughly $98.8 million in expenditures for the year, producing an increase in fund balance of about $3.4 million and an ending general fund balance near $22.3 million — about 2.7 months of operating reserves, which he noted is within TEA’s guidance for a healthy reserve level.
Board member Robb moved to approve the near‑final draft for the year ending June 30, 2025; the board approved the motion by voice vote. Willis told trustees the board will be asked to sign the board certificate and accept the final audit once the federal guidance is issued and the auditor signs and dates the opinion.
The district’s next step is to allow Patillo, Brown & Hill to finalize and date the opinion after the federal guidance is released and then return formal documents to the board for final acceptance and the required board certificate signing.
