District 11 auditors report no major findings; GASB 101 adds $5 million sick‑leave liability
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Summary
Auditors presented a largely clean annual audit for Colorado Springs School District No. 11, reporting no major findings in the draft comprehensive financial report. They said a new GASB 101 requirement will add about $5,000,000 in compensated‑absence liabilities; the federal single‑audit remains pending federal guidance.
The Board of Education for Colorado Springs School District No. 11 received a largely favorable report from its external auditors at a Nov. 19 special meeting, with the lead auditor saying the primary draft shows no changes to the numbers the district previously reported.
"The short answer to that question is no," Steve Sauer, the primary lead auditor for Forbus, said when asked whether the audit had produced changes to previously reported figures. Sauer said the audit team found no major findings and expects the finalized report to be released within a week or two after secondary review.
Sauer highlighted three routine areas of emphasis for school‑district audits: the valuation of investments, the useful lives assigned to capital assets, and pension and other post‑employment benefits tied to PERA. He also said a change in accounting standards — GASB 101 — required that compensated absences (sick leave) be recorded as a liability this year, “which added about a $5,000,000 liability to the government‑wide balance sheet.”
The auditor described retainage (unbilled amounts related to contractor invoices) as a minor discussion topic tied to ongoing construction projects, and he noted that budget‑to‑actual changes in the general fund were driven principally by higher salaries and instruction costs in 2025 that were nonetheless below budgeted amounts.
Superintendent Doctor Comfort introduced two new finance leaders attending the presentation, Chris Baker (executive director of finance) and Jared Hoogsteen (director of financial services), and thanked the audit team for the work. Comfort and Sauer both said the district’s single‑audit report, which is program‑specific, remains on hold until the federal government completes guidance tied to the recent extended government shutdown; auditors estimated that guidance might arrive in 2026.
Board members asked procedural questions about school‑level internal audits; Doctor Comfort said the district maintains a schedule of internal audits and that principals or area superintendents can request audits at any time.
The presentation concluded with thanks from the board and no requests for staff follow‑up beyond the normal finalization of the report.
What happens next: the district expects the finalized comprehensive financial report to be posted after the auditing firm completes its secondary review and the federal single‑audit guidance is issued.