Auditor anticipates clean opinion for Spartanburg 1; GASB 101 changed compensated-absence reporting
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Summary
External auditors told the board they expect an unmodified 2025 financial opinion, noted a delay pending the final federal compliance supplement, described GASB 101 effects on compensated absences and reported a general fund balance of about $24.9 million.
External auditors presented the district's 2025 audit draft and financial highlights and told trustees they anticipate a clean opinion once the federal compliance supplement is finalized.
"We will have a clean or an unmodified opinion over the district's 2025 financial statements," Brian Nicholson of Malone Jenkins said, but he cautioned that final issuance is pending the federal compliance supplement that had not been released. The auditors said they do not anticipate changes to the draft and that the state will allow 30 days to upload a final signed report if no changes occur.
Nicholson noted implementation of GASB Statement 101 resulted in a material effect on the financial statements because districts are now required to account for compensated absences differently. He said the district had no material weaknesses or significant deficiencies and that the auditor would issue a clean single-audit report when the compliance supplement is final.
Financial highlights presented to trustees included a general fund ending balance of about $24.9 million, an increase of roughly $2.8 million from the prior year, and the child nutrition cluster expenditures at approximately $3,600,000, representing about 49% of federal awards tested. Nicholson explained timing and next steps for the December state filing and said the district will meet deadlines while auditors finish required review steps.
Board members asked for clarification about cash held at the county and how reserves relate to upcoming facilities work; district staff said roughly $12 million was committed for future facilities and that funding details will be reviewed with trustees as plans develop.