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External auditors issue clean opinion on MCPS FY25 financial statements; single‑audit on track
Summary
SB and Company reported an unmodified opinion on Montgomery County Public Schools’ FY25 financial statements, found no material weaknesses or fraud, and said the federally required single audit is on track to be completed by the Dec. 31 deadline.
SB and Company issued an unmodified (clean) opinion on Montgomery County Public Schools’ FY25 financial statements and the district’s annual comprehensive financial report, the firm told the school system’s Fiscal Management Committee on Dec. 2. Chris Lehman, engagement partner for SB and Company, said auditors found no material weaknesses in internal control and no instances of fraud during their audit of the year ending June 30, 2025.
The audit covered the ACFR, which includes basic financial statements, management’s discussion and analysis, supplemental schedules and component‑unit reporting for the educational foundation. Lehman described a risk‑based approach that tested treasury reconciliations, estimates such as pension and OPEB actuarial inputs, the expenditure cycle, payroll controls and IT access. He told the committee the firm had no disagreements with management on accounting matters and completed the financial‑statement audit about three months after year‑end.
Why it matters: an unmodified opinion is the standard assurance that the financial statements fairly present the district’s financial position under US generally accepted accounting principles and GASB guidance. Lehman added the firm is required to be independent in appearance and fact, and that SB and Company conducts preliminary fieldwork and several weeks of substantive testing each audit season.
CFO Yvonne Alfonso Windsor and staff framed the audit as a tool for transparency and process improvement. They noted the ACFR must be filed under state law and that the district posts the report on its website. The committee was also told the single audit — the federal grant compliance testing required for school systems — remains in progress and is on track to meet Maryland’s Dec. 31 deadline.
Next steps: staff will post the ACFR and related documents for public access and continue routine engagement with the auditors and actuaries. The committee agreed not to ask additional questions at the time and moved on to other agenda items.
