External audit: Richland 2 receives unmodified opinion; general fund strength noted
Loading...
Summary
External auditors gave Richland School District 2 an unmodified (clean) opinion for FY25, reporting an increase in unassigned fund balance to $122.9 million (about 27% of expenditures), rising revenues and capital spending; auditors noted two financial-statement reporting items and recommended attention to pupil activity procedures.
External auditor Andrew Coleman of Greenfinicolor presented the Richland School District 2 audit to the board on Dec. 9 and reported an unmodified (clean) opinion for the district's FY25 financial statements.
Coleman told trustees the district's unassigned general fund balance increased by about $3.1 million to $122.9 million, representing roughly 27% of FY25 expenditures — above the Government Finance Officers Association's 16.7% guideline. General fund revenues were about $354.6 million (an approximate 7% increase year over year); expenditures were roughly $380.6 million (about a 9% increase), with most growth in instruction. Debt service showed an overage of roughly $1.1 million tied to front‑end recognition of subscription/lease accounting.
Coleman also reviewed other fund activity: a $900,000 decrease in the food service fund (appropriate because SDE guidance encourages spending down high fund balances), $48.6 million decrease in capital projects fund largely due to ongoing projects and about $62.8 million expended in capital in the year, and long‑term debt of $543.8 million (a $52.1 million decrease from prior year after scheduled principal payments). The auditors identified two financial‑statement items to report — a prior period adjustment restating certain balances and capital asset additions that were capitalized this year — and said procedures for pupil activities would appear as a comment in the management letter.
Coleman emphasized the audit provides "reasonable assurance" that financial statements are materially correct and is not designed to detect all fraud. The auditors submitted draft work for the district's Dec. 1 deadline after federal single‑audit guidance and SDE single‑audit instructions were issued late in the season. Trustees voiced appreciation for the finance team's work; no findings affecting the audit opinion were announced.
