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Saugus USD audit clean, first‑interim report shows modest reserve increase despite enrollment dip
Summary
District auditors delivered clean (unmodified) opinions on the 2024–25 district and CFD audits; the first interim financial report shows a combined reserve of about 12.38% despite a small enrollment shortfall and targeted increases in special education spending.
External auditors reported a clean set of opinions for the Saugus Union School District and its Community Facilities District at the Dec. 16 board meeting, and district finance staff presented the 2025–26 first interim report showing a stable reserve.
An audit presenter stated the district earned an “unmodified opinion” on the financial statements, federal awards and state compliance, and that auditors found no material weaknesses or significant deficiencies. The board accepted the 2024–25 audit and the CFD audit by vote.
Chief Financial Officer Heinlein reviewed the first interim: the district’s October census showed 9,114 students versus a budget projection of 9,163 (49 fewer students), reducing revenue by roughly $581,000; the unduplicated pupil percentage declined and reduced targeted‑funding projections by roughly $211,000. Offsetting gains included an increase to the TK add‑on (state funding) and one‑time state grants, producing net improvements that resulted in an increase to the unrestricted fund balance and a combined reserve rising modestly to ~12.38 percent.
Heinlein also flagged rising costs in special education, agency staffing for 1:1 aides and projected capital outlays for electric buses and TK furniture. The district increased contributions to special education programs by roughly $917,000 and added positions funded by restricted and agency dollars.
The board approved the first interim financial report and accepted the audits during consent business.
What happens next: Board members said they will monitor enrollment, unduplicated pupil counts and year‑to‑year grant timing through quarterly updates and will consider multiyear projections when planning the 2026–27 budget.
