Auditors give Dunlap CUSD 323 a clean FY25 opinion as leaders review reserves, transfers and pension exposure

Russ Rumboldt, the district’s auditor, told the Dunlap CUSD 323 board on July 1 that the auditors issued an unmodified ("clean") opinion on the fiscal year ended June 30, 2025, and reported no findings in the internal-control report. "The opinion that we issued on the financial statements is an unmodified opinion," Rumboldt said.

The audit packet highlights where the district’s money sits. Rumboldt pointed board members to the fund-balance summary and a handout showing a net operating-equity figure of about $36.6 million for core operating funds, while noting the total fund-balance number printed in the report includes large non-operating balances tied to capital assets and restricted funds.

Rumboldt reviewed major revenue drivers and changes. He said real estate taxes are the district’s largest local revenue at about $42 million. Evidence-based funding from the state increased and added roughly $1.9 million to the district this year after a shift to a higher funding tier. He also described roughly $8.5 million in transfers from operating funds into capital projects as a primary reason the operating funds showed a negative change despite reported revenue gains.

Board members asked how those moves affect the district’s financial-profile score. Rumboldt said the district’s profile had improved to 3.65 from 3.55, largely through debt paydown. He cautioned that planned bond activity could move the score back toward 3.55, and that he had not yet run the debt projection model for the bond scenario. On reserves, staff and the auditor said education-fund reserves measured roughly 3.7–3.8 months and the operation-and-maintenance fund about three months, within an informal 3–6 month guidance the auditor noted.

Rumboldt also reviewed pension-related disclosures: the audit shows a large net pension liability on paper (the audit cites approximately $189 million), of which the auditor said the state’s share is listed at about $187 million; the district’s net cash responsibility is therefore small relative to the total actuarial liability but remains a large disclosed number in the report.

The audit, which the auditor said is posted on the district website, also includes summary pages the board can reference for fund-level details (page references were given in the presentation). Rumboldt encouraged trustees to review the fund-balance and revenue-versus-expense pages to track where changes occurred.

The board did not take formal action on the audit during the meeting; members used the presentation and Q&A to press staff for follow-up modeling on the effect of planned debt and to request continued monitoring of transfers between operating and capital accounts.

Ending: The district’s FY25 audited statements carry a clean opinion; the board requested additional modeling on bond plans and the district’s multi-year reserve trajectory as next steps.