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Mehlville R‑IX board accepts clean audit, approves $5.5M in favorable budget adjustments
Summary
The board accepted an unmodified audit opinion and approved November budget adjustments showing roughly $5.5 million in net favorable variances, including a $2 million positive current‑taxes change and a proposed (not yet executed) $2.1 million transfer to capital.
The Mehlville R‑IX Board of Education voted Nov. 20 to accept the district’s annual audit and approved November fiscal‑year 2026 budget adjustments that, as presented, show roughly $5.5 million in net favorable variances.
Hope Hernandez of the district’s external audit firm presented the annual audit and said the auditors issued an unmodified opinion on the financial statements and found the district in compliance with applicable Missouri laws. “We issued an unmodified opinion, which means the financial statements are presented fairly in all material respects,” Hernandez said.
CFO Marshall Crutcher outlined the November budget highlights: a $2,000,000 favorable adjustment in current taxes tied primarily to residential growth (about 2.9%), a $1,000,000 early‑childhood payment from DESE received this year that had been delayed previously, and $335,000 in federal grants offset by related expenses. On the expense side, Crutcher cited savings from collapsing nine teacher positions (about $889,000) and a favorable medical‑insurance variance of about $520,000 after renewing rates at a 4% increase rather than 10%.
Taken together, Crutcher said the net favorable variance was about $5,500,000. He noted that approximately $3,200,000 of that amount has already been reflected in the capital fund through prior tax‑rate adjustments and said a transfer of $2,100,000 from the general fund to the capital fund is a possible year‑end action if conditions remain the same; that transfer was not executed at the meeting.
Board members asked clarifying questions about timing of future adjustments (anticipated in February and at year‑end), the status of HVAC work connected to capital projects and how facility‑steering committee input will guide capital uses. The board approved the audit acceptance motion (recorded 7–0) and then approved the presented budget amendment (recorded 7–0).
What this means: The audit’s unmodified opinion is the strongest standard auditors issue and signals no material misstatements in the financial statements provided. The budget adjustments, if they hold through year‑end, could allow the district to shift additional funds to capital projects to complete remaining Prop S work.
What to watch: The CFO said additional adjustments will be considered in February and at the fiscal year close; any final transfers to capital will be reflected in subsequent board materials and audited year‑end statements.
