Auditor reports clean opinion, district shows higher cash and new bond issuance

Auditors told the Twin Valley School District board that they expect to issue clean, unmodified opinions on the district’s governmental and major fund financial statements for fiscal 2025, and that the district’s single-audit work (required because federal spending exceeded $750,000) delayed completion until federal guidance was issued.

Tim Sawyer, the audit partner, said the audit used a hybrid approach with on-site and remote fieldwork and noted that the delayed compliance supplement pushed completion into December; he told the board a draft would be available for management review immediately and that final numbers were unlikely to change. The audit team reported an unmodified compliance opinion for the district’s ESSER program.

On financials, the presentation compared 2024 to 2025: cash balances rose to about $40.4 million (from about $33.3M); receivables increased to roughly $6.0M; capital assets, net increased to approximately $54.8M; bonds payable rose to about $50.6M after a 2024 bond issuance; and the district’s net deficit improved by about $5.0M to about $30.2M. The auditors attributed much of the district’s long-term negative position to pension and other postemployment benefit liabilities, which they reported around $72.9M for fiscal 2025.

Board members asked when the draft audit would be distributed; the auditor said management would receive a draft the next day with final statements to follow, and the board voted to advance related finance agenda items to next week’s voting meeting.