External auditors issue clean opinion on University of Minnesota FY2025 financial statements, note emphasis-of-matter

Auditors from CliftonLarsonAllen LLP told the University of Minnesota’s Audit and Compliance Committee on Dec. 11, 2025, that they had issued an unmodified (clean) opinion on the university’s fiscal year 2025 financial statements but included an emphasis-of-matter related to reclassifications in the university foundation’s prior statements that did not affect net assets, the auditors said.

Darren Prasad, the engagement principal for CliftonLarsonAllen, said the firm “did issue an unmodified or clean opinion.” He reported there were no audit adjustments and that the auditors “did not identify any material weaknesses or significant deficiencies relating to the financial statements.”

The auditors described the engagement as risk based. Michael Anderson, the audit manager, told the committee the team concentrates work on areas most susceptible to error, citing revenue recognition and management override of controls as presumptive risks and identifying the university’s large alternative investment portfolio as another high-risk area that required specific valuation procedures.

Auditors also discussed two new Governmental Accounting Standards Board pronouncements implemented in FY25. Anderson said GASB Statement No. 101, on compensated absences such as earned but unused vacation and sick leave, was adopted and did not change the university’s reported liability. He said GASB Statement No. 102, which expands disclosures for concentrations or constraints, requires management monitoring and judgment; for FY25, auditors reported no disclosures related to concentrations or constraints.

Jean Bouchong, a principal with CliftonLarsonAllen, reminded the committee that auditors test selected key controls and that the external audit is not an evaluation of the university’s entire internal-control structure. She said auditors are required to report any significant deficiencies or material weaknesses discovered during testing.

Prasad and the audit team also said they reviewed significant management estimates — including valuations of investments — and found those estimates reasonable and not biased by management’s judgments. The auditors noted they had no changes in scope, performed required governance communications, and affirmed their independence for the engagement.

Chair Verhalen and committee members asked questions about the frequency and drivers of new GASB standards; auditors replied that standards vary by year and are often adopted to address inconsistencies across governments and institutions. CliftonLarsonAllen said it will present additional new GASB implementations at the committee’s February meeting for FY26.

The committee thanked the audit team and university finance staff for the work that produced the FY25 results. The presentation closed with the auditors inviting questions, and the committee proceeded to later agenda items.