FNSBSD audit: auditors issue unmodified opinion; board approves FY2024–25 financial statements

Auditors from Altman Rogers presented the Fairbanks North Star Borough School District's fiscal year 2024–25 financial statement audit on Feb. 17 and reported unmodified opinions on the financial statements and major federal and state programs. The board voted unanimously to accept the auditor's report.

"In our opinion, the accompanying financial statements ... present fairly in all material respects the respective financial position of the governmental activities," the auditor said during the presentation, noting there were no material weaknesses identified and no audit findings requiring correction. The auditing team also reported no disagreements with management and no significant difficulties in performing the audit.

The auditors and district staff discussed accounting changes required by GASB 101 that increased reported liabilities for compensated absences. The administration highlighted several fund balances and operational gaps: the transportation fund ended FY25 with a fund balance of roughly $820,000 and the board authorized a $2,000,000 transfer for FY26 to prevent a negative balance; nutrition services' fund balance dropped from about $2,000,000 to $980,000 year over year and the operation ran more than a $1,000,000 deficit in FY25.

District accounting staff said those gaps stem from structural differences between restricted revenues (state transportation grants, federal nutrition reimbursements and student pay) and actual operating expenses; historically the general fund has subsidized these activities. The superintendent and accounting director noted impact aid receipts also increased cash in FY25 and helped the district's overall asset position.

Board members asked technical questions about the Office of Management and Budget compliance supplement timing, which delayed some single audit timing, the district's low‑risk auditee status, and pension reporting that affected net position. Trustees voted unanimously to approve the financial statements and auditor's report.

The district's budget committee will continue work on proposed budgets and scheduled meetings, including a budget committee review on Feb. 26.