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External auditor gives Garfield schools a clean opinion; fund balance about $9.3M, auditor lists nine recommendations
Summary
External auditors presented the annual comprehensive financial report and an unmodified opinion, reporting an approximate $9.3 million fund balance and nine management recommendations addressing payroll certification, account transfers, reporting timeliness, purchasing documentation, food service reconciliation, meal application coding, transported student determinations, and capital inventory.
Andrew Parenti, representing the district’s external auditors, reported to the Garfield Board of Education that the auditors will issue an unmodified (clean) opinion on the district’s financial statements for the year ending June 30, 2025. In his presentation the auditor said the district ended the year with approximately $9,300,000 in fund balance, of which roughly $6,000,000 the board can use going forward after designations and amounts used to balance the current budget.
Parenti walked the board through the fund balance breakdown the auditors identified: about $705,000 in excess surplus minimum, $2,100,000 designated for subsequent year expenditures, $750,000 reserved for capital reserve, $350,000 in a maintenance reserve, $632,000 for unemployment compensation benefits, $206,000 in encumbrances, and an unassigned balance reported as approximately $3,400,000. He said $3.3 million of the balance was used to fund and balance the 2025–26 budget, leaving about $6 million at the board’s discretion.
The auditor delivered nine recommendations for improved controls and compliance. Key findings included that bimonthly payrolls were not certified by the superintendent (a state requirement for payroll certification); state aid receipts were deposited to the payroll agency account rather than the general operating account; a June transfer resolution to move undesignated general fund balance to restricted reserves was not approved within June; monthly board reports omitted the Capital East Bank account; contract awards from cooperative purchase agreements lacked supporting documentation; food service operating statements and district sales records were not reconciled; 10 students were misclassified on free and reduced price meal applications; transported student determinations (special education and nonpublic) required greater care; and the capital assets inventory omitted numerous additions.
Parenti summarized that the unmodified opinion indicates the financial statements are “fairly stated and free of material misstatement.” Board members acknowledged the report and noted corrective actions were submitted by district finance staff. The presentation concluded without any immediate vote other than formal acknowledgment and later consent votes approving grouped finance and other resolutions.
The board said it will continue implementing corrective measures and that business‑office staff raised timely corrective action responses to several audit recommendations.
