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Auditors give Hartland schools a clean opinion; federal award audit pending OMB guidance
Summary
External auditors told the Hartland board they issued an unmodified (clean) opinion on the district's FY2025 financial statements, reported a strong general fund balance (~31.2% of expenditures), but noted the federal award part of the single audit remains open pending the 2025 OMB compliance supplement; auditors also flagged that the food‑service fund balance exceeded MDE limits and management is working on corrective steps.
Maynard Kastarian auditors presented the district’s FY2025 financial audit to the Hartland board on Nov. 17, saying the financial statements received an unmodified (clean) opinion and that district business office staff were cooperative during a first‑year audit engagement.
Key numbers: The auditors summarized the governmental fund balance sheet as of June 30, 2025, reporting an approximate total general fund balance of $21.5 million and an unassigned general fund balance of roughly $19.9 million (about 31.2% of current year expenditures). Auditors compared prior year percentages and county averages to show the district’s position was above the previous year and above Livingston County averages reported for earlier years.
Federal award audit: The auditors said the financial statement portion is finalized, but the federal award (single audit) component is not yet final because the federal OMB compliance supplement for 2025 has not been released. They said testing was performed against last year’s supplement and a draft of the 2025 supplement and that they do not anticipate major changes, but the federal‑award report will be finalized only after the supplement is released.
Food service fund: Auditors noted the cafeteria (food service) fund balance exceeded the Michigan Department of Education’s recommended maximum (three months of operating expenditures). They said management is aware and is working to spend the excess down by the following June and that the matter appears in the management letter as a follow‑up item from the prior year.
Questions: Trustees asked whether timing would allow the audit to be completed within the 30‑day requirement after the OMB supplemental release; the auditor said he did not anticipate timing problems. Board members also asked for specifics about how far above the limit the cafeteria fund was; the auditor said he did not have that number in front of him but reiterated the management team is addressing it.
Quote (auditor): "We issued an unmodified opinion ..." the auditor said, describing the opinion as the highest level of assurance for a financial statement audit.
Next steps: The auditors will finalize the federal award portion after the OMB releases its supplement and staff will continue to implement the corrective action plan to address the food‑service fund balance.
