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ROCORI auditors issue clean opinion; board accepts audit and notes one control finding
Summary
External auditors issued an unmodified (clean) opinion for ROCORI Public School District's FY2025 finances and reported one written internal-control finding (lack of segregation of duties); the board accepted the audit and discussed fund balance and a deficit in the community service fund.
ROCORI Public School District trustees accepted an independent audit of the district’s finances for the year ended June 30, 2025, after auditors said the district’s financial statements are fairly stated in all material respects.
Nancy Wilson Berg, engagement partner for Berg and KDB, told the board the firm is “issuing an unmodified opinion,” known commonly as a clean opinion, and that the audit found no compliance deficiencies in major federal programs or Minnesota legal compliance. She identified one written internal-control finding: overlapping accounting duties, a bookkeeping arrangement the auditors said is common in districts of ROCORI’s size.
The audit presentation highlighted revenue and expense trends. Auditor slides showed 2025 revenues increased roughly 2.8% (about $1 million), driven by state sources and local property taxes, while the end of COVID-era federal funding produced a decline in other federal revenues. Berg noted the district served 822 nonresident pupils in 2025 — up from 680 in 2021 — a factor that helped increase formula-driven state aid.
On the expenditure side, the auditor said overall spending rose about 3% (roughly $1 million), with site and building work and special education the largest contributors. The district’s unassigned fund balance increased to about 6.2% of expenditures, placing it within the district policy range of 6%–10% though toward the low end. An alternative measure, unrestricted fund balance as a percentage of unrestricted expenditures, dropped to about 10.4%, below statewide averages for traditional districts.
The auditor warned the community service fund dipped into a deficit in 2025 for the first time since 2020 and asked the board to monitor that fund; food-service revenues were stable but expenses rose because of higher staffing and equipment costs. Berg also said program compliance testing for major federal programs (child nutrition and special education) produced an unmodified opinion.
Board member Lynn moved to accept the audit report; Matt seconded the motion. The board approved it by voice vote.
What happens next: staff said they will use the audited results in the district’s five-year financial forecast and the revised budget work scheduled to begin in January, and the audit materials will be posted on the district website.
