Independent audit gives Forest Grove unmodified opinion, flags account consolidation and reporting items

Paul Rogers & Company audit managers presented the district’s financial audit for the year ended June 30, 2025, and reported an unmodified (clean) opinion on the district’s financial statements.

The auditors said the audit has four thematic parts: (1) the financial statement audit that supports the unmodified opinion; (2) tests for compliance with state reporting requirements (such as teacher-experience reporting); (3) federal single-audit work over grant awards; and (4) a statement that no management letter was issued because auditors did not identify any material weaknesses or significant deficiencies.

Noted items and recommendations: the board letter referenced two reportable items: instances where expenditures exceeded authorized appropriations (see board letter page 17) and teacher-experience reporting (board letter page 68). The auditors recommended the district consider reducing the volume of bank accounts it maintains to simplify business-office processes; staff reported the district has reduced accounts from about 30 to 21 since the report date.

Federal audits and bond matters: Auditors performed two single audits (the remaining COVID asset program and migrant education) and found no findings in either single audit. They also reviewed the district’s Series 2023 bond proceeds (about $32 million) and confirmed proper presentation in the financial statements.

Context and board guidance: Auditors stressed audit timing and scope—financial statements are retrospective and lag by a year—so boards should supplement annual audits with regular budget/financial oversight and monitoring of cash flows and assumptions in revenue projections (average daily membership, state school fund calculations and PERS pension liability inputs).

Representative quotes

"We issued an unmodified opinion," said David Bledsoe, audit manager, describing that as the outcome the board wants to see.

"We did note two items" in the board letter (budget appropriation overages and teacher experience reporting), the auditors said, and they reiterated the recurring recommendation to consider downsizing the number of bank accounts.

What happens next: The audit team and the district will continue conversations about account consolidation and board-level financial oversight; the auditors suggested periodic targeted briefings and recommended the board review fund-basis activity and net position to better understand long-term liabilities such as PERS.