Leander ISD gets unmodified audit opinion; auditors flag procurement weakness in child nutrition cluster

External auditors from Whitley Penn told the Leander ISD Board of Trustees that the district received an unmodified (clean) opinion on its FY2025 financial statements and that major federal programs examined (including Title II A and the Child Nutrition Cluster) received unmodified opinions. The auditors noted a material weakness related to procurement procedures in the child nutrition cluster; management has provided a corrective action plan and strengthened procurement controls.

Auditor Addison Ebarb outlined the audit process, areas of focus (IT controls, PEIMS reporting, payroll and procurement), and the options for auditor opinions. Financial highlights presented included total assets and deferred outflows of roughly $2.4 billion, cash and investments of about $729 million, capital assets net of depreciation near $1.5 billion, and total liabilities and deferred inflows about $2.6 billion. Ending net position was shown as negative (driven largely by pension and OPEB noncash liabilities), with adjusted context provided by administration.

Following the presentation, a trustee moved and the board voted to approve the 2024–25 annual comprehensive financial report. Later in the agenda the district’s finance director updated trustees on revenue estimate changes for the 2025–26 budget cycle, reporting an estimated $4.2 million increase due to separate hold‑harmless provisions and a modest recapture decrease; the adopted deficit estimate improved from roughly -$20M to approximately -$15.8M pending TEA and comptroller certifications.

Next steps: Auditors will finalize single‑audit opinions after federal compliance materials are released; administration will update revenue estimates as TEA and the comptroller finalize certified values and will report back on any implications for the district budget and hold‑harmless requests.