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Independent auditor issues clean FY25 opinion for Cedar Rapids schools; GASB 101 adds multi‑million dollar liability
Summary
External auditors from RSM told the board they will issue an unmodified FY25 opinion and reported implementation of GASB Statement No. 101 added roughly $7–8 million in accrued compensated‑absence liability; auditors noted one immaterial timing error (~$35,000) and two minor compliance items under state procedures.
Aaron from RSM presented the district’s annual comprehensive financial report for fiscal year 2025 (year ended June 30, 2025) and said the firm intends to issue an unmodified (clean) opinion on the financial statements. "We intend to issue what is called an unmodified audit opinion," Aaron said, describing that as the highest level of opinion.
RSM identified one auditing‑standard change that required retrospective implementation: GASB Statement No. 101 (compensated absences). That change expanded the types of paid time off to be accrued and added an estimated liability of about $8,000,000 in the prior year and about $7,000,000 at the end of the current fiscal year.
Auditors described a set of six accounting estimates they reviewed and deemed reasonable, reported no adjustments to financial statements resulting from audit procedures, and noted one immaterial uncorrected misstatement (a $35,000 invoice timing issue). In federal program testing (single audit) auditors tested the child nutrition cluster and pandemic-related State and Local Fiscal Recovery Funds and reported no compliance findings for the major programs tested.
The board moved to approve the FY25 audit report and approved it by voice vote.
