Galena Park ISD audit: firm issues unmodified opinion for FY 2025

Galena Park Independent School District leaders heard on Jan. 12 that external auditors issued clean opinions on both the district's fiscal 2025 financial statements and its major federal programs.

"I'm happy to announce that the district has received an unmodified opinion over the financial statements," Brooke Fuller, senior manager on the engagement for Whitley Penn LLP, told trustees as she presented the financial statement audit and the federal single audit results.

Fuller said auditors found no internal control findings related to financial reporting and no findings related to compliance. She identified the district's major federal programs for FY 2025 as the special education cluster, Title II, Part A, Title IV, Part A and the ESSER program and said the firm issued unmodified opinions on each.

The presentation summarized the district's financial position: a roughly $7 million increase in net position from the prior year to about $161.1 million; a general fund ending fund balance of about $222 million (a $160,000 increase year-over-year); debt service ending fund balance of about $8.1 million; and a capital projects fund balance that rose (driven by debt issued) to about $200 million.

Fuller walked trustees through revenue and expenditure breakdowns: state aid comprised about $126.3 million (roughly 50% of general fund revenue), property tax revenue about $96.8 million (about 38%), and other revenues near $30.3 million. Total general fund expenditures were presented as about $250 million, with instruction and related services accounting for about $145 million (roughly 58%).

She also described fund-balance categories: nonspendable balances (prepaids and inventories) near $656,000, assigned fund balance about $156.7 million, and unassigned fund balance about $64.8 million (25.9% of general fund operating expenditures), notably above the commonly recommended 10% to 15% range.

Fuller said the district implemented GASB Statement No. 101 this year (noted in the firm's required communications), auditors encountered no difficulties with management during the audit, and no material misstatements were identified that required correction. "We did conclude that management does have a reasonable basis for these judgments and estimates," she said.

The auditor concluded by thanking district staff for their cooperation. Fuller offered to take questions; the board thanked her and moved on to other business.

Next steps: the audit report and supporting schedules are part of the district's public records and are available in the published audit package for FY 2025.