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Auditor issues clean opinion; Red Lake board accepts audit and hears fund-balance highlights
Summary
External auditor reported an unmodified opinion and strong general fund reserves; the board moved to accept the 2024–25 audit and discussed enrollment and bond balances.
The Red Lake Public School District’s auditors reported an unmodified (clean) opinion on the district’s financial statements during the board’s Jan. 21 meeting, and the board moved to accept the audit.
Brian (S6), the auditor presenting the report, told trustees the audit produced a clean opinion: "We have issued an unmodified opinion on the financial statements," and highlighted several financial metrics, including a healthy general fund position. The auditor said unassigned fund balance is large relative to expenditures (a reserve the auditors estimate at roughly 50% of general fund expenditures) and that the district’s unrestricted and restricted funds — including an Impact Aid balance identified in the report — show no red flags.
Key figures summarized by the auditor included a reported overall positive change in net position and an unassigned general fund balance identified in the report as roughly $25,827,819, with a general fund fund balance cited at about $32,986,318 and Impact Aid restricted funds in the neighborhood of $5.9 million. The auditor also reported no disagreements with management and no compliance findings in single-audit testing of Title I and Impact Aid programs.
Board members had no substantive questions and thanked the audit team. On a motion to accept the 2024–25 financial audit, the board moved forward; a second was recorded and the board approved acceptance as an action item.
Why it matters: An unmodified opinion is the standard indicator auditors provide when financial statements are fairly presented in accordance with accounting standards. The board heard that the district’s reserves and fund balances are healthy, which affects short-term budgeting flexibility and the district’s ability to manage cash flow and debt service.
What’s next: The audit will be filed as part of the district’s official financial records; staff will continue to monitor revenues and expenditures and to report updates to the board.
