Auditors give Amherst Central School District a clean opinion, flag excess school-lunch reserve

Charles Trotzee, an audit director who presented the annual audit to the Amherst Central School District board, said the district's financial statements for the year ended June 30, 2025, are in draft form but that auditors plan to issue an unmodified (clean) opinion once federal and state compliance supplements are final. "The opinion that you're receiving is an unmodified opinion," Trotzee said, adding auditors found no significant deficiencies in internal control.

Trotzee told the board the district's single-audit opinion for federal spending is delayed because the federal compliance supplement has not yet been released, a timing issue affecting many districts. He said the district receives federal funds above the threshold that triggers a single audit and that auditors examined the child-nutrition program for compliance and eligibility.

The audit communication included a management comment about an "excess fund balance" in the child-nutrition (school-lunch) fund. Trotzee said the fund's net position exceeds the six-month working-average threshold referenced by state guidance and that districts commonly provide a plan to spend the excess down on one-time uses such as equipment. "We always recommend to spend it on one-time use," he said.

Auditors also described two restatements in the draft statements: a change in the valuation of compensated absences to align with government accounting standards, and a policy change to limit receivable look-backs to five years, which resulted in write-offs of older receivables dating back to 2011. The auditors reported no findings in their review of extra-classroom activity (ECA) funds.

Trotzee showed a five-year trend the board that reflected about $4.4 million of net fund-balance growth over the period, largely driven by one-time revenues (insurance rebates, stop-loss reimbursements and a wagering-related grant). He said the district established new restricted reserves (including liability and insurance reserves) and that assigned fund balance rose to roughly $1.9 million while the district's on-site/unassigned fund balance was being maintained in line with the statutory guidance cited in the presentation.

The audit presentation closed with the auditors reiterating that, aside from timing and the two restatements, there were no material changes from the prior year and that the financial statements could be relied upon by outside users. "A clean audit all around," Trotzee summarized.

Next steps: the board will receive the final, issued audit once the federal and state compliance supplements are available and the district completes any planned follow-up on the management letter recommendation for the child-nutrition fund.