Pearland ISD accepts clean audit; board approves budget amendments and merit-pay payouts
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Summary
Auditor Whitley Penn reported an unmodified opinion on the FY24–25 financial statements; trustees approved the audit, a FY25–26 budget amendment, and merit-pay and CTE incentive payouts, citing healthy fund balance metrics and no audit findings.
Pearland ISD trustees voted Nov. 11 to accept the annual financial-statement audit for fiscal year 2024–25 after the district’s auditor reported a clean opinion and no findings.
Patrick Simmons, audit partner with Whitley Penn, told the board the firm issued an unmodified opinion on the district’s financial statements, performed under generally accepted auditing standards and government auditing standards. "I'm happy to report an unmodified opinion on the financial statements," Simmons said. He noted the federal single-audit report will be issued separately once the Office of Management and Budget releases the 2025 compliance supplement.
Simmons highlighted key metrics in the presentation: general-fund revenues of about $221.8 million versus expenditures of about $208.6 million, a net increase in fund balance of roughly $10.9 million, and an ending fund balance near $86.3 million. He also noted instruction and related services represented about 60% of spending and that the district had an additional compensated-absences accrual of roughly $16 million due to a new accounting standard.
Board members asked questions about administrative-cost percentages and presentation slides. Trustee Stuckey moved to approve the audit and Trustee Johnson seconded; the motion carried 6–0 with Trustee Scheffler absent.
On the same agenda the board approved Budget Amendment 2 for FY25–26 to adjust general-fund and debt-service items, including upfront costs for TIA submissions that are reimbursable if approved, and then voted to approve advanced-placement merit pay and career-technology teacher incentive payouts (motions carried 6–0 with Trustee Scheffler absent for each vote).
The board was told that no material misstatements required correction and no compliance findings were identified; the auditor praised district staff for a timely and seamless process. The board will receive the federal single-audit report for approval when the OMB supplement is released.
Next steps: sign required federal single-audit documents when available and implement approved budget amendments and compensation payouts.