Auditors for Pine‑Richland School District told the board the district received an unmodified opinion on its financial statements for the year ended June 30, 2025, meaning the statements "present fairly in all material respects," the lead auditor Justin Mancherry said. The presentation covered the general fund, capital projects, food service and federal award testing.

Mancherry summarized the district's general‑fund balances at year end: nonspendable about $2,100,000 (prepaids), committed roughly $190,000 (retirement costs), assigned about $21,000,000 (capital and budgeted items) and unassigned approximately $7,200,000, for a total general fund balance of about $30,600,000. He told the board total general‑fund revenues were about $107,000,000 and expenditures just under $105,000,000; after transfers the year ended with a roughly $3,700,000 decrease in fund balance.

Auditors said revenues exceeded budget by roughly $2.6–$2.7 million, driven primarily by stronger‑than‑expected interest earnings, while expenditures were under budget by about 0.9%, which the firm characterized as evidence of realistic budgeting and good expenditure control. The food service fund was reported to be essentially break‑even, with a $26,000 net increase in net position for 2025; auditors noted prior‑year federal reimbursements had boosted 2024 figures.

On pensions, Mancherry highlighted a reported net pension liability of about $106,000,000 and said this reflects the district's proportionate share of the statewide retirement plan liability; he emphasized this is not a payable the district can simply retire early and that contractually required contributions were being made. The auditors also performed a single audit because federal expenditures exceeded the threshold; total federal awards were reported at $1,500,000, the special‑education cluster was selected for major‑program testing, and no compliance findings or significant internal control deficiencies were identified.

Board members asked for clarifications on several line items, including a $1,419,000 other financing source tied to a five‑year copier lease that, under GASB 87, is shown as both revenue and expense in the entering year. Auditors and staff said that accounting treatment offsets on the budget and does not represent net new resources. The board concluded the audit review portion of the meeting with no material exceptions noted.

The district said it will include the auditors' full report in board materials for further review and asked staff to provide more detailed backup where trustees requested it.