Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
Auditors give Ann Arbor Public Schools a clean FY25 opinion; fund balance improves but board remains below policy target
Summary
Plant Moran presented an unmodified opinion for fiscal year 06/30/2025, reporting an audited ending general fund balance of about $21.6 million (≈7.2% of expenditures) and no material weaknesses; staff said a budget amendment will be brought to the board in December and highlighted ongoing state funding and retirement‑cost pressures.
External auditors from Plant Moran presented the results of the Ann Arbor Public Schools fiscal‑year 2025 audit, giving an unmodified (clean) opinion and reporting no material weaknesses or significant deficiencies in internal control.
Core audit results and context: auditors said the district’s financial statements were fairly presented for the year ended June 30, 2025. Finance staff reported audited revenues of roughly $306.4 million and expenditures of about $302.1 million. The district’s ending general fund balance was reported at approximately $21.6 million, which staff said equates to about 7.2% of expenditures (roughly 26 days of operating costs). Auditors noted a separate federal awards report remains in draft because the federal compliance supplement has not been finalized.
Capital and retirement costs: staff highlighted capital investments of about $60.9 million from bond and sinking‑fund activity (not borne by the general fund) and reiterated rising retirement (MPSERS) and healthcare costs as ongoing budget pressures. Finance staff explained pass‑through Section 1.47c retirement funds (about $19 million) appear in both revenues and expenditures.
Near‑term steps and board reaction: staff said they will present a formal budget amendment at the board’s December meeting (expected Dec. 17) reflecting updated revenue items and the district’s current projections. Trustees thanked the superintendent and finance team for efforts to rebuild fund balance from a prior low of about 2.2% to the current level, while noting the district remains below its 8% board policy target and well under the statewide average.
What this means: a clean audit indicates standard financial reporting and oversight; however, trustees and staff said continuing state funding uncertainty, rising benefit costs, and retirement contribution trends will require ongoing monitoring and difficult decisions to reach the board’s fund‑balance goals.
