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Board accepts unmodified financial audit and single-audit findings; auditors note GASB restatement
Summary
Auditors presented the 2024-25 financial audit and the federal single-audit; both received unmodified opinions, auditors identified a $1.5 million GASB-related restatement and several noncompliance posting and personnel-file items, and the board approved the audits by voice vote.
The Hobbs Municipal Schools board received presentations on the district's 2024-25 financial audit and the accompanying federal single-audit and approved both reports.
An auditor speaking to the board said the financial statements were "fairly presented in all material respects" and reported an unmodified opinion. The auditor explained that a GASB 101 change (reporting of compensated absences averaged over three years) required a $1,500,000 restatement of net position, described a posting error of $13,457 that had been recorded in state revenue instead of federal revenue, and identified personnel-file findings (missing background checks and contracts). In the single-audit portion, the auditor reported $12,900,000 in federal expenditures and issued a clean opinion for major federal programs tested.
Board members moved and seconded motions to approve the financial audit and the single audit; the transcript records affirmative "Aye" votes and no recorded opposition for those motions.
Why it matters: An unmodified audit opinion signals that the district's financial statements are materially sound. The auditor noted several findings that the district must address in procedures (budget controls, personnel files, and posting corrections). The federal single-audit summary also reconciled federal expenditures to the financial statements.
What's next: The district will address the audit findings and continue budget planning for 2627; the auditor noted specific findings and adjustments in the audit report.
