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External auditors give Harlandale ISD a clean opinion; certification pending federal compliance supplement
Summary
ABIP auditors reported an unmodified (clean) opinion on Harlandale ISDs financial statements and unmodified opinions on three major federal programs, while the audit certification remains pending until an OMB compliance supplement is released.
Auditors from ABIP presented the districts annual financial report for the fiscal year ended June 30, 2025, and delivered an unmodified (clean) opinion on the financial statements. The auditor said the audit found no material weaknesses or significant deficiencies in internal control over financial reporting and reported unmodified opinions on major federal programs including the Special Education cluster (IDEA B), Title I Part A, and the Emergency Connectivity Fund.
The auditor noted a delay in final certification tied to the federal Office of Management and Budgets pending release of the compliance supplement required for Uniform Guidance testing; the district and auditors said they are comfortable with the financials as presented but cannot finalize certification until the supplement is issued. "We will say our audit was an unmodified Audit opinion," the auditor stated.
Audit highlights presented to trustees included a general fund total fund balance of $60.1 million (a decrease of about $4.6 million from the prior year), nonspendable balances under $1 million, restricted fund balance of $7.1 million and unassigned funds for district operations of about $51.4 million. The auditor told trustees the district holds roughly four to four-and-a-half months of operating reserves, within the Government Finance Officers Association recommendation of three to six months.
The audit also reviewed bond activity and capital spending: refunding and remarketing activity included $19.7 million in refunding bonds (Series 2024B) and remarketed variable/fixed school building bonds from Series 2020 totaling $35.7 million; capital projects fund activity included $12.5 million spent on facility improvements and $9.9 million in new Series 2024A school building bonds.
Trustees asked whether the districts fund balance remained healthy despite building repurposing and enrollment declines; an auditor and district staff confirmed reserves remained healthy and described favorable budget-to-actual variance (revenues exceeded budget in several state and federal programs and expenditures were below budget in several functional areas).
The board did not vote on the audit at this meeting; auditors will finalize the report when the federal compliance supplement is released and remain available to answer follow-up questions.
