District audit returns clean opinion; auditors flag capital outlay budget practices and a staffing funding error

Independent auditors presented draft financial statements for the fiscal year ending June 30, 2025, and reported a clean (unmodified) opinion while also identifying two findings the board should address.

The auditor, Shannon Dennison, said the district received an unmodified audit opinion — the best available outcome. "So pleased to report that there is an unmodified or clean opinion for the financial statements," Dennison said, and credited finance and district staff for assembling documentation.

Dennison described fund-balance movement: the general fund increased by about $70,000 (ending near $3.4'$3.5 million), the capital outlay fund increased roughly $98,000 (ending about $696,000), and other special revenue increased about $444,000 (ending about $3.6 million). The Child Nutrition Fund began with about $1.1 million in cash and ended with roughly $978,000 after operations, with transfers from the general fund totaling about $222,000 above required minimums.

The auditors reported two significant deficiencies. First, there were budget violations in the capital outlay fund (a repeat finding); Dennison said some expenses were paid directly by the county and not recorded in the district budget, and that including those items in the district accounting will reduce apparent overages. Second, a media specialist had been paid from a state classroom teacher allotment that does not permit that classification; the district moved the employee to an allowable funding source before year end, so there was no cost to the district but controls failed to catch the classification earlier.

Board members discussed remedies. Staff and auditors recommended anticipating county-paid project expenses and filing budget amendments when projects are approved so totals align and future audits avoid repeat findings. The district said it will coordinate earlier with county finance to avoid timing mismatches.

What's next: staff will examine capital outlay accounting practices and plan to use budget amendments to reflect county-paid project costs in advance; the final audit issuance date will be updated once federal reporting documents are signed.