Mia Frommelt, partner at the district’s auditing firm, presented the FY25 audit summary and told the board the financial statement audit received an unmodified (clean) opinion, the highest level of auditor assurance. She said the audit included an emphasis-of-matter paragraph addressing GASB 101 — a new accounting standard that changed how Iowa districts record compensated absences under government auditing standards.

On internal controls and compliance with state law, Mia reported no findings and noted improvements since prior years when significant deficiencies were identified. The federal single-audit over federal awards remained in process at the time of the presentation because federal guidance was delayed; Mia said the single-audit report would be issued soon.

Mia told the board the district expended about $20,900,000 in federal grant funds for FY25 and that intergovernmental revenue decreased roughly $30.9 million year-over-year largely because ESSER (COVID-related) funding expired. She said total governmental fund revenues were around $237 million (rounded) and total governmental fund expenditures were approximately $274 million, driven higher by capital outlay (construction) activity tied to prior bond proceeds.

Board members thanked finance staff for the clean audit and raised questions about how federal funding moving to a block grant model next year could affect programming and compliance. Mia and Kevin said the district does not yet know how block-granting will change federal compliance or funding amounts and that federal agencies are expected to issue guidance in the spring.

The board did not take action on the audit itself; members requested continued monitoring of federal guidance and timely dissemination of the single-audit report when finalized.