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Auditors give Tularosa Municipal Schools unmodified opinion, note $300,000 PED cash-reporting finding
Summary
An auditor from Disney Mitchell and Company told the Tularosa Municipal Schools board it received unmodified opinions on the 2025 financial statements and federal awards but recorded one finding: a $300,000 discrepancy in cash reported to the New Mexico PED.
Carlos from Disney Mitchell and Company presented the district's 2025 audit and said the district is receiving an unmodified opinion on its financial statements and on federal awards.
"You are receiving an unmodified opinion," Carlos said, adding the district also had an unmodified opinion for federal awards and that "you are receiving the best possible opinion for both." He said the government-wide statements showed a $3,300,000 change in net position and an ending net position of $8,300,000, and that the numbers were generally consistent with prior years.
Carlos explained the audited financials include an $800,000 restatement tied to new accounting guidance under GASB 101 that requires recognizing a liability for compensated absences when the leave is earned. He said fund financial statements showed a $400,000 change in fund balance with an ending fund balance of $13,000,000.
On federal compliance, Carlos said the district's single-audit major program was Title I and that the auditors found no exceptions there, yielding an unmodified opinion on federal awards.
The presentation also recorded one new 2025 finding related to the PED cash report: "a difference of $300,000 between the actual cash balances and the amount reported to the New Mexico PED," Carlos said. He contrasted the finding with the district's recent improvement in audit results, noting the district had 10 findings in 2023, 4 in 2024 and 1 in 2025.
Carlos reviewed timing and deliverables: an exit conference on Dec. 16, 2025; submission to the Office of the State Auditor; receipt of state notes and corrections; and final report submission on Feb. 11, 2026. He thanked district management and staff for cooperation and said auditors encountered no disagreements or difficulties with management.
The board did not record further action on the finding during the meeting; Carlos invited follow-up questions and offered contact by phone or email.
The board will receive and file the audit presentation; the transcript does not record a separate remedial vote or corrective-action plan during this session.
