John Cummings of KPM CPAs told the Saint Joseph School District Board of Education on Tuesday that the district’s financial statements for the year ended June 30, 2025, received an unmodified opinion, the highest level of auditor assurance.

"In our opinion, the financial statements referred to above present fairly in all material respects," Cummings said, summarizing the independent auditor’s report and explaining the review was conducted in accordance with U.S. auditing standards. He noted the district reports on a modified-cash basis and that the audit focused on cash receipts, disbursements and bank reconciliations.

Cummings and his team identified timing issues tied to federal ESEA/Title program reimbursements that affected the district’s fiscal-year cash position. He said the district did not timely claim Title funds for the 2023–24 and 2024–25 program years, which produced a roughly $9.7 million difference in receipts compared with prior years (about $4.6 million for 2023–24 and $5.1 million for 2024–25). Those amounts were subsequently received in July and October 2025, after the fiscal year closed.

The timing reduced the district’s operating fund balance percentage to about 10.2% at June 30, 2025, down from roughly 25% the prior year. The auditor noted that, had the reimbursements been captured in the fiscal year rather than after year-end, the operating reserve percentage would have been materially higher.

Cummings recommended the district adopt more frequent drawdown procedures and stronger administrative processes for claiming federal funds. He also highlighted routine audit suggestions — clearer stipend tracking and strengthened procedures around bank reconciliation and stale checks — and said there were no material weaknesses or reportable instances of noncompliance in the audit’s testing of Title I and special education programs.

Superintendent remarks at the meeting noted the district has already made procedural changes and that HR and academic offices have worked to improve coding and the timing of claims. The board voted to accept the audit as presented.

What’s next: auditors recommended formalizing the improved reimbursement schedule and presenting a procedural calendar to the board so the district can demonstrate consistent, auditable steps for claiming federal funds during the fiscal year.