DeKalb CUSD 428 audit: clean opinion, $88.2 million operating fund balance; asset revaluation noted

DeKalb CUSD 428’s FY24–25 annual comprehensive financial report received an unmodified opinion from auditors, who also reported an operating fund balance of about $88,200,000 and noted a front‑statement accounting adjustment tied to a capital‑asset reappraisal.

Jennifer Becker, the in‑charge auditor from Wipfli Inc., told the board the audit was conducted under generally accepted auditing standards and governmental auditing standards and that the district’s financial statements were prepared on the modified accrual basis. “The audit had an unmodified opinion, which means a clean opinion, a fairly presented opinion, no which in all material respects,” Becker said during her presentation.

Becker summarized key figures: the main operating funds ended with an approximate $88.2 million fund balance, an increase of roughly $3.5 million from the prior year. She said operating reserves represented about 63% of annual expenditures — the equivalent of roughly eight months of operating coverage. On revenue, she reported that property taxes account for about 43% of operating revenue while federal and state funding comprise about 49%.

Expenditures rose about 26% compared with the prior year, Becker said, attributing most of the increase to construction of a new elementary school and to contractual salary and benefit increases. She also reported the district had not issued new debt in the year covered and that debt levels remained below statutory limits. The district earned both ASBO and GFOA certificates in financial reporting, distinctions Becker said are held by about 50 Illinois districts.

Becker warned the audit communication included a material‑weakness finding related to capital‑asset valuation tied to a recent reappraisal of fixed assets. She framed the finding as an accounting valuation adjustment rather than an operational control failure: “There was a material weakness that is noted in the letter, but that is strictly due to your capital out, asset valuation,” Becker said. Board members asked about about a roughly $25 million change referenced in materials; auditors and staff said the district had not reappraised properties for about a decade and that the recent appraisal corrected long‑standing valuation entries and aligned insurance values to current appraisals.

After the presentation and questions, the board moved and approved the audit and annual comprehensive financial report.

What’s next: The audit and communication letter are part of the district’s public records and will be included with the annual comprehensive report submitted to state authorities. Board members said they will review the auditor’s required communications and follow up if further clarifications are needed.