Dearborn schools receive clean audit but general fund balance remains below recommended level

Jeff Higgins, partner in charge of the district audit at Plant Moran, told the board the firm issued an unmodified — or clean — opinion on the School District of the City of Dearborn’s financial statements for the year ended June 30, 2025. "Based on the results of our audit procedures, we've rendered what's referred to as an unmodified or a clean opinion on the district's financial statements," Higgins said in the presentation.

Higgins summarized key figures: total assets of approximately $92.5 million; total revenue around $277 million for the fiscal year; instructional expenditures of roughly $167 million (about 62% of total spending); and a general fund balance of about $33.5 million, which the auditor reported as 12.37% of expenditures. He noted a $695,000 increase in fund balance year over year and explained the district has transferred roughly $47 million from the general fund into the building site projects fund in recent years to cover capital improvement needs, which lowers the general fund percentage compared with state averages.

Higgins also explained that about 75% of district revenue is state funding and roughly 18% is local (property tax). He reminded trustees that state averages were boosted in recent years by pandemic-era federal funds and that comparisons should consider that context.

Trustees asked clarifying questions about whether other funds (special revenue and federal programs) are audited. Higgins said all district funds are subject to audit procedures and that federal programs will receive a separate federal program audit under OMB rules; he said those audits are expected to yield unqualified opinions as well.

The presentation concluded without a requested board action; auditors answered trustee questions and thanked district business-office staff for their cooperation. The audit will be posted as part of the district's public records for the fiscal year.