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Denton ISD accepts audited financial report, trustees hear fund-balance and enrollment outlook
Summary
Trustees unanimously approved the district's annual comprehensive financial report after hearing an external auditor's presentation showing a $12.3 million decrease in the general fund balance to about $66 million; staff outlined enrollment projections and fund-balance goals tied to recent state policy and Prop A.
The Denton Independent School District Board of Trustees on Feb. 10 unanimously approved the annual comprehensive financial report for the fiscal year ended June 30, 2025, after an hour-long presentation from the district's external auditor and staff.
Carl Deaton, the district's outside auditor, told trustees that the audit delivered an unmodified (clean) opinion on the financial statements and highlighted key figures: general fund revenues of roughly $337 million, expenditures of about $347 million, and a net decrease in the general fund balance of about $12.3 million to an ending balance near $66 million, or about 2.3 months of last year's expenditures (roughly 19%). "Based on the audit procedures we performed, in our opinion these statements present fairly the financial position," Deaton said.
Deaton also described activity in other major funds: a $26 million increase in the debt service fund to about $148 million and significant capital-projects activity, including roughly $171 million in debt issued and about $360 million spent on construction during the year. He noted a new accounting standard requiring district estimates for certain compensated absences, which produced a prior-period adjustment of about $22 million to long-term liabilities.
Board staff framed the audit figures in the budget process that follows. District finance staff projected that, after implementation of House Bill 2 and the passage of Prop A, the district's unassigned fund balance is likely to approach about 17.5% of expenditures by the end of 2026 and said the district remains focused on the board policy goal of maintaining a total general operating fund balance near 25%.
Trustees had time to ask questions about specific funds, grant accounting and recent changes to state reporting timelines that delayed the audit schedule this year. President Burns called for the motion to approve the comprehensive financial report; the motion carried unanimously.
What happens next: Trustees approved the report, and staff said corrected audit packets would be provided after approval. The approval allows staff to proceed with budget planning and required filings with state agencies.
