Auditor urges tabling single‑audit approval; district reports solid reserves and new compensated‑absences liability

Nathan White, a partner at Singleton Clark, reviewed Fabens ISD’s fiscal‑year financial compliance report and explained a federal timing issue that prevents final board approval of the district’s single audit tonight.

White said the district meets the single‑audit threshold when it receives and expends more than $750,000 in federal awards. He explained that the Office of Management and Budget’s compliance supplement — which guides single‑audit procedures — had not been finalized, and without that final guidance the audit cannot be certified. He recommended the board table approval and said the firm would contact district staff when the supplement is issued so the board can approve or disapprove the audit in a future meeting.

Key financial points presented by the auditor included:

• An unmodified (clean) opinion on the financial statements; no modifications to the audit opinion were required (as stated by the auditor).

• Recognition under new GASB guidance of a compensated‑absences liability. When accumulated state leave days are translated to a government‑wide liability, the auditor estimated roughly a $500,000 liability. White clarified this is reported on government‑wide statements and does not affect the district’s modified‑accrual budget basis.

• A general‑fund decrease of about $1.2 million to a balance of $13,593,192, representing roughly 6½ months of operating expenditures — a reserve level the auditor described as acceptable and consistent with prudent practice.

White also summarized single‑audit and budgetary compliance highlights: no questioned costs in Title I testing and a limited budgetary compliance issue related to reconciling older balance‑sheet accounts.

What’s next: Auditor recommended tabling the single audit approval until the OMB compliance supplement is finalized; the district will revisit approval when federal guidance is available.