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Duluth Public Schools board accepts FY25 audit; auditors issue unmodified opinion
Summary
Board received the FY25 audit presentation, was told auditors will issue an unmodified ("clean") opinion, discussed recurring internal-control adjustments and receivable write‑offs, and approved the audit in substantial form by a 7-0 roll-call vote.
The Duluth Public Schools board unanimously approved the district's fiscal year 2025 audit after a presentation from the district's auditors and a brief question-and-answer session.
Rob Ganshaw, introduced by Executive Director Simone Zunich, told the board auditors will issue an unmodified opinion on the district's basic financial statements — an audit firm "clean" opinion that indicates the financial statements are free of material misstatement. The auditors also reported findings that mirror prior years: several audit adjustments, reconciliation work done late in the process and control items around financial reporting that required material adjusting entries.
The presentation showed the district ended the year with a total fund balance just under $8 million and a negative unassigned fund balance of about $3.1 million. Auditors said revenues were roughly $141 million, expenditures about $153 million, producing excess expenditures over revenues of about $12.3 million; other financing sources totaled roughly $700,000. Auditors noted a prior-period adjustment related to unemployment-insurance recording required by the Minnesota Department of Education.
Auditors also flagged that the single-audit work on federal programs (uniform guidance testing) remained incomplete because the federal compliance supplement was delayed; that testing is due March 31, 2026, the auditors said.
Board members pressed for detail about receivables that were written off in the community education fund. Auditor and staff responses said many of those receivables dated back two to three years and related to funding agencies rather than individual participants.
After the presentation, Member Loflercamp moved and Member Sadowski seconded a motion to approve the audit "in substantial form." The board approved the motion by roll call, 7-0.
The auditors and district staff said they will complete the remaining federal-program testing and file the single-audit work as required. The board scheduled more detailed budget tracking and HR business services updates for January.
