District 11 auditors present largely clean annual financial audit; single-audit rules still pending

Auditors told the Board of Education for District 11 on Nov. 19 that the district—s annual comprehensive financial report had no major findings and that the numbers the board has already seen will not change.

The presentation, led by Steve Sauer of audit firm Forbus and introduced by district finance leaders, highlighted three areas of emphasis: valuation of investments, useful lives of capital assets related to recent construction and renovation, and pension and other post-employment benefits (PERA). Sauer described a new accounting standard under GASB 101 that requires the district to record compensated absences (sick leave) as a liability, adding about $5,000,000 to the balance sheet.

"Not every day that an auditor gets to bring a bunch of good news," said Steve Sauer, the lead auditor, as he summarized the 2025 audit. "The short answer to that question is no," he added when asked whether the audit produced changes to the numbers the district has already reported.

Why it matters: a clean primary audit reduces the risk of immediate corrective actions, gives the district and the public confidence in internal controls and financial reporting, and frames how the district will report multi-year obligations such as sick-leave liabilities.

The auditors also flagged retainage (unbilled amounts related to contractor invoices on construction projects) as a minor discussion item and noted changes in the reporting entity tied to charter schools that were added or removed in 2025, which affect disclosures in the comprehensive report. District staff said the audit is still in draft while the auditor conducts a secondary review but that they expect no substantive changes when the final report is released.

On single audits, which look at federal program compliance, Sauer and administration explained the delay is not District 11-specific but is tied to federal rule-making after the extended government shutdown; the district expects the single-audit rules to be issued in 2026 and said the separate single-audit report will follow that guidance.

District finance staff present included Chris Baker, identified as the executive director of finance, and Jared Hoogsteen, director of financial services. Superintendent Gahl and other administrators and auditors answered board questions about the schedule for the single audit and confirmed that internal school audit schedules exist and that principals or area superintendents can request additional reviews.

The board received the presentation, asked no substantive follow-up that would change the finding of no major issues, and thanked auditors and staff. Administration said the finalized comprehensive financial report will be delivered to the board next week or shortly thereafter, with the single-audit follow-up pending federal guidance.