Auditor gives Canyon City Schools a clean opinion; cash drawdown tied to capital projects

Chris, an external auditor, told the board the district's financial statements are presented fairly in all material respects and the firm issued an unmodified (clean) opinion after fieldwork performed in October. He said overall cash decreased by about $14,000,000 year over year while capital assets net increased by about $25,000,000, a pattern the auditors attributed primarily to ongoing capital projects.

Chris summarized fund-level movements: the general fund's fund-balance ratio declined from about 25% (fiscal year '24) to about 21% ('25), reducing the days-of-expenditure coverage from roughly 91 days to about 77 days. He said the district typically prefers 90–120 days but described 77 days as still on the healthier side given the capital spend-down. Revenue growth was roughly 1% while expenditures rose about 4%, resulting in an approximately $1,100,000 decrease in general-fund balance.

On internal controls and federal compliance, Chris said auditors found controls to be well designed and operating effectively and noted no significant deficiencies or material weaknesses. Because the district spends federal awards, auditors performed single-audit testing on Title I and Title II grants and reported no compliance findings.

Board members asked technical questions about how construction spending is capitalized. The auditor explained that construction costs are recorded as "construction in progress" and later moved to depreciable capital assets once projects are completed; depreciation then reduces net capital assets over time. The auditor also noted PERA-related actuarial entries affect full-accrual statements and can be a common source of confusion.

The board thanked Chris and finance staff, noting the district's new finance leadership and the audit's role in confirming overall financial health. The audit presentation concluded without follow-up motions.