Auditor flags $723,980 variance; board schedules detailed bridge and pushes for staff presentation

An independent auditor presented the district’s financial statements and reported a clean (unmodified) audit opinion for the fiscal year ended June 30, 2025, but noted one noncompliance matter that resulted in a material finding and a remaining variance of $723,980 in the district’s fund‑balance reconciliation.

The auditor told trustees the district’s general‑fund total fund balance was $2,857,523 with an unassigned portion of $2,780,196, representing roughly 8.1% of annual operating expenses. The auditor said expenditures in the general fund exceeded the amounts appropriated in the budget and identified that condition as finding 2025‑001 in the audit schedule of findings.

Board members reacted with concern and disagreement about who should explain the detailed numbers to the public. One board member said a month’s delay without a clear explanation would “become a big mess” and pressed for a transparent timeline. The member calling for answers argued trustees owed the public a unified factual explanation rather than piecemeal comments from individual board members.

Superintendent Hilton and trustees said the district’s interim or part‑time financial staff have been working to reconcile variance items; the board requested staff prepare a detailed bridge that traces how the final budget at June 30, 2024, reconciles to actual results for 2024‑25. The presenter said the team already reduced the initial $1.2 million variance to the current $723,980 by identifying specific sources but that questions remain that will be addressed in the planned monthly follow‑up.

Public commenters had raised related transparency concerns earlier in the meeting. Anthony Alanis told the board that answering questions in public, rather than only online FAQs, would be preferable, saying, “If you respond to things on social media with FAQs and coy attacks, then you most certainly will respond to questions offered here in public meeting.” Superintendent Hilton said he has contacted the Tecumseh Police Department regarding a separate personnel complaint and declined to provide details in open session.

The board did not take formal action to alter the audit opinion but approved a plan for staff to bring a detailed reconciliation and a final narrative explanation to the board at a future meeting so trustees and the public can review the specific line‑item causes of the variance. Trustees also discussed improving routine financial reporting formats when the district’s Director of Business Services returns.

Next steps: staff will prepare and present a detailed bridge of the 2024‑25 budget‑to‑actual variances at the next board meeting; the board indicated it expects clearer, staff‑driven financial reports rather than board members presenting ad hoc numbers.