Auditor gives Chisago Lakes a clean FY2025 opinion; general fund balance rises to about 7%

John Stachel, supervisor with audit firm Abdo, presented the fiscal-year 2025 financial-statement audit and told the board the district received an unmodified (clean) opinion: “we did issue the district unmodified opinion, or you might think of that as a clean audit opinion.”

Stachel said the audit was performed in accordance with generally accepted government auditing standards and included testing of internal controls and Minnesota legal compliance; he reported the auditors found no instances of legal noncompliance in the areas they tested. Because the district’s federal expenditures exceed the single-audit threshold, Abdo also performed single-audit procedures and reported a modified outcome for the child nutrition cluster tests.

Key performance indicators in the presentation included an enrollment decline of roughly 49 students from FY24 to FY25 and a general-fund unassigned balance that increased to about 7.06% of expenditures, which Stachel noted lies within the board’s 7–10% policy range. The auditor also summarized that actual activity for FY25 increased the general fund balance by about $3,300,000 compared with a budgeted net decrease of $1,100,000, driven by slightly higher state revenues and some underspending in programs including special education.

The presentation included a regional and statewide comparison of revenues and expenditures per pupil and an overview of outstanding general-obligation bonds (about $53,000,000 outstanding) with projected principal and interest payments; interest obligations were summarized at roughly $12,000,000 for the referenced period.

Board members thanked business-office staff for the work that contributed to the audit results, and several asked follow-up questions about how comparables were selected and how district spending levels relate to outcomes. The auditor cautioned that district-to-district comparisons can be influenced by differences in tax bases and program offerings.

Action taken later in the meeting: the board moved, seconded and recorded a voice vote of 'aye' to approve the audit report (motion and second at open session; roll call recorded elsewhere in the meeting for other items).