Prosper ISD board accepts clean 2024-25 audit, board told fund balance grew by $15 million
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Summary
The Prosper ISD Board of Trustees voted unanimously to accept the district's 2024-25 annual financial audit, which auditors issued an unmodified (clean) opinion on; presenters reported a $15 million increase to the district's fund balance and a 99.67% tax collection rate.
The Prosper ISD Board of Trustees voted unanimously on Jan. 20 to accept the district's 2024-25 annual financial audit after a presentation from district finance staff and the auditor.
District finance staff summarized the audit, saying the general fund recorded $362,500,000 in revenue and $351,000,000 in expenditures for the 2024-25 fiscal year. The presenter said the district added $15,000,000 to its fund balance during the year, bringing the overall fund balance to $183,000,000 and noting designated commitments including $66,000,000 for employee retention and recruitment, $3,300,000 for prepaid items and $29,400,000 assigned to an adopted deficit for the current year.
The presenter told the board the audit produced an unmodified opinion and "we had a straight up clean audit," adding that no material weaknesses or deficiencies were identified. The district also reported a 99.67% tax collection rate for the year.
Why it matters: An unmodified (clean) opinion is the highest standard auditors can issue and signals that Prosper ISD's financial statements fairly present the district's financial position for the year reviewed. The board was told the uncommitted portion of the fund balance provides a cushion measured in operating days; the presenter framed this as prudent planning given potential state funding uncertainties.
Board action and next steps: Mr. Van Wolf moved to approve the audit as presented; the motion passed on a 5-0 vote. The district indicated it will post the final audit findings to the Prosper ISD website.
Details from the presentation: Finance staff said personnel expenses comprise roughly 82% of district expenditures, that bond project spending is winding down for 2019 and 2023 bonds in various closeout phases, and that federal funds must be spent in full in the year received. The presenter credited maintenance staff (naming Cardell Miller) for small revenue items such as equipment scrappage that added to revenue.
The board and subcommittee members thanked staff and the auditor for the work that produced the audit report. The board's formal motion approving the audit was recorded during the meeting.
