Belton ISD audit shows clean opinion; general fund at 2.7 months of reserves
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Summary
Independent auditors issued an unmodified opinion on Belton ISD's FY2025 financial statements and found no federal-award findings; the district recorded a roughly $2.5 million net decrease in the general fund, leaving about 2.7 months of reserves, slightly below typical 3-month guidance.
Independent auditors told the Belton ISD Board of Trustees on Feb. 2 that the district's fiscal 2025 financial statements earned a clean, unmodified opinion and showed no findings in the federal-award compliance review.
Kent Willis, a partner with Patillo, Brown & Hill, told trustees the audit team performed extensive procedures and issued a clean opinion, the highest level of assurance an auditor can give for local-government financials. Willis said auditors also tested federal programs and found no compliance findings in the Schedule of Expenditures of Federal Awards, including the IDEA-B special education cluster.
Why it matters: A clean opinion indicates the auditors believe the financial statements are materially correct for users including the Texas Education Agency and local stakeholders. Willis emphasized that "materially correct" does not mean error-free; audit standards allow for small, immaterial errors.
Key figures: Willis said total general-fund revenue for FY2025 was about $144.6 million and expenditures about $149.2 million, producing a net decrease of approximately $2.5 million. That change left the district with roughly 2.7 months of general-fund reserves as of Aug. 31, 2025, slightly below common guidance of about three months.
Board members pressed the auditors on how that ratio compares with other districts. Willis said there is a wide range: some small districts keep a year of reserves, while some larger, fast-growth districts hold little more than a month. "Most of mine are in the two-to-four-month range" this year, he said.
Trustee response and next steps: Trustees thanked the business office and auditors for their work. A motion to approve the annual comprehensive financial report was made and seconded during the meeting; the transcript records the motion and second but does not print a roll-call tally. The audit materials will be published on the district's financial-transparency page as part of the district's regular disclosure practice, the board was told.
What the audit does not change: Willis noted that while the financial statements are materially correct and the audit found no federal-award findings, auditing standards are not designed to prove perfection. The board and staff said they will continue monitoring fund balance and budget adjustments in coming months.
Provenance: Auditor presentation and Q&A first presented to the board and public (SEG 859 '0 SEG 1312).